Free tools · 2026 rates
Vacation pay calculator
Vacation pay is calculated from the average daily earnings over the last 6 months, multiplied by the working days on vacation (section 75 of the Labour Law). The calculator counts working days from the real Latvian calendar, including public holidays.
Vacation pay (gross)
737,70 €
For 10 working days
Average daily earnings
73,77 €
From 6 months of data
Average monthly earnings
1499,99 €
Section 75 of the Labour Law formula
How it's calculated
- Total pay over 6 months9000,00 €
- Average daily earnings (÷ 122 days worked)9000,00 € ÷ 12273,77 €
- Vacation pay (× 10 working days)73,77 € × 10737,70 €
The amount is gross — social contributions and personal income tax are withheld from it just like from salary (calculate in the salary calculator). A four-week annual vacation is usually 20 working days. The same formula also works for compensation for unused vacation when ending employment.
Frequently asked questions
How is vacation pay calculated?
The average daily earnings (the last 6 months' pay divided by the days worked) are multiplied by the number of working days on vacation. A four-week vacation is usually 20 working days.
Is vacation pay taxed?
Yes — vacation pay is wages; social contributions (VSAOI) and personal income tax are withheld from it just like from salary. The calculator shows the gross amount.
How are average earnings calculated for fewer than 6 months worked?
You take the calendar months actually worked (the exceptions in section 75 of the Labour Law) — the total pay is divided by the days worked in them.
This calculator is for information only and does not replace tax advice — the final figure is set by the State Revenue Service (VID) in its assessment. The rates are computed by the same engine used in Vadi accounting, and each value is verified against official sources (VID, likumi.lv). If you spot an inaccuracy, write to us.
Vadi does these taxes for you
Salaries, VSAOI reports, MUN and VAT declarations in EDS format, a tax calendar with exact amounts — automatically, without spreadsheets and calculators.