Coefficient to calculate the equivalent in 2021


Leave is the inalienable right of every employee to an annual and uninterrupted rest. An employee should receive a cash equivalent for leave in the event that, during employment, he / she did not use in kind the leave due to him in full or in part, and the employment relationship has been terminated or has expired. How to determine the coefficient to calculate the equivalent in 2021?

Right to an equivalent

As already mentioned, the right to a cash equivalent for unused leave is regulated by the Labor Code. It is the basis for the settlement of receivables that are guaranteed by the employee due to the employment relationship with the employer. It is the equivalent of unused vacation leave in the form of a monetary compensation that the employee is entitled to receive. The cash equivalent applies to both the unused holiday leave for the current year and the overdue leave. It is not possible to pay the employee a cash equivalent during the employment relationship, but only upon termination of the contract with the employer. An exception to this rule applies to a situation where the parties decide to use the leave during employment established on the basis of another employment contract concluded with the same employer, immediately after the termination or expiry of the previous contract.

Coefficient to calculate the equivalent in 2021

The equivalent for unused annual leave is calculated on the basis of fixed and variable remuneration components, as well as using a coefficient that is a constant value for a given calendar year. The method of calculating the coefficient for calculating the equivalent is regulated by the provision of § 19 of the Regulation of the Minister of Labor and Social Policy on detailed rules for granting holiday leave, determining and paying remuneration for the holiday and cash equivalent for the holiday. The total number of Sundays, public holidays and non-working days resulting from the working time schedule in an average five-day working week should be subtracted from the number of days in a given calendar year. The obtained result is divided by 12. In 2021, the coefficient for calculating the equivalent for unused leave is 21. In 2021, the factor for unused vacation is 21
[365 days of the year - (52 Sundays + 9 holidays + 52 days off)] = 252 days;
252 days: 12 = 21 If the employee is employed on a part-time basis, the coefficient for unused leave is determined proportionally to this number of working hours. For example, the coefficient for an employed employee:

  • for 3/4 of a full-time job it is: 21 x 3/4 = 15.75;
  • for 1/2 time is: 21 x 1/2 = 10.50;
  • for 1/3 of a full-time job is: 21 x 1/3 = 7.00;
  • for 1/4 of a full-time job is: 21 x 1/4 = 5.25.

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How to calculate the equivalent for unused vacation?

In order to calculate the amount of the compensation due to the employee:

1. Determine the basis of the equivalency assessment.
In which the average employee remuneration is taken into account: fixed monthly rate, components for periods not longer than a month and components for periods longer than a month.
2. Calculate the equivalent for 1 hour of unused vacation. That is, the basis of the equivalent dimension is divided by the equivalent coefficient, and then by the employee's daily working time standard.
3. The obtained equivalent for 1 hour of unused leave should be multiplied by the number of hours of unused leave.

Example 1.

The employee is employed for 3 months full-time from January 1 to March 31. His base salary is PLN 4,000. The employee was entitled to 5 days of leave, of which he used 4 days, for the remaining day he will get an equivalent for unused leave. The average working week is 5 days, 8 hours each.

1. Basis for calculating the equivalent: PLN 4,000.00
2. The basis should be divided by the factor:
PLN 4,000.00 / 21 = PLN 190.48
then divide the result by the daily working time standard:
190.48 PLN / 8 = 23.81 PLN
3. The equivalent for 1 hour of leave should be multiplied by the number of hours of unused days
unused vacation - 1 days, 8 hours each
23,81 PLN x 8 hours = 190.48 PLN → the equivalent amount

Deadline for the payment of the equivalent

The equivalent for unused vacation should be paid on the last day of employment. On this day, the employee acquires the right to an equivalent instead of the right to leave. To determine the allowance to which the employee acquired the right during the year, the holiday factor in the amount applicable in the year in which the employee became entitled to it should be applied.

Example 2.

The employer terminated the contract with the employee on December 31, 2020, the employee will receive the remuneration for December by January 10, 2021. Until the date of termination of the employment relationship, the employee will not use 5 days (40 hours) of annual leave for 2020. The employer should pay the employee an equivalent for unused leave on 31/12/2020. To determine the amount, the employer will be required to use the coefficient to calculate the equivalent in 2020, which was 21.08.