{"id":565,"date":"2026-03-14T00:19:42","date_gmt":"2026-03-13T22:19:42","guid":{"rendered":"https:\/\/amberfy.lv\/?p=565"},"modified":"2026-03-14T00:19:42","modified_gmt":"2026-03-13T22:19:42","slug":"vacation-pay-part-time-employees","status":"publish","type":"post","link":"https:\/\/amberfy.lv\/en\/articles\/vacation-pay-part-time-employees\/","title":{"rendered":"Common mistakes when calculating vacation pay for part-time employees"},"content":{"rendered":"

Part-<\/span>time <\/span>employment <\/span>in <\/span>Latvia <\/span>is <\/span>becoming <\/span>increasingly <\/span>common. <\/span>It <\/span>provides <\/span>flexibility <\/span>for <\/span>both <\/span>employers <\/span>and <\/span>employees, <\/span>but <\/span>in <\/span>practice <\/span>questions <\/span>often <\/span>arise <\/span>about <\/span>how <\/span>to <\/span>correctly <\/span>calculate <\/span>vacation <\/span>pay <\/span>and <\/span>determine <\/span>average <\/span>earnings<\/span><\/strong>.<\/span><\/p>\n

The <\/span>Labour <\/span>Law <\/span>provides <\/span>that <\/span>employees <\/span>working <\/span>part-<\/span>time <\/span>have <\/span>the <\/span>same <\/span>rights <\/span>to <\/span>annual <\/span>paid <\/span>leave <\/span>as <\/span>employees <\/span>working <\/span>full-<\/span>time. <\/span>However, <\/span>calculation <\/span>errors <\/span>often <\/span>occur <\/span>when <\/span>the <\/span>methodology <\/span>for <\/span>determining <\/span>average <\/span>earnings <\/span>is <\/span>applied <\/span>incorrectly <\/span>or <\/span>when <\/span>certain <\/span>situations <\/span>are <\/span>not <\/span>taken <\/span>into <\/span>account, <\/span>such <\/span>as <\/span>long-<\/span>term <\/span>absence (<\/span>for <\/span>example, <\/span>parental <\/span>leave).<\/span><\/p>\n

This <\/span>article <\/span>outlines <\/span>the <\/span>most <\/span>common <\/span>mistakes <\/span>in <\/span>calculating <\/span>vacation <\/span>pay <\/span>for <\/span>part-<\/span>time <\/span>employees<\/span><\/strong> and <\/span>provides <\/span>a <\/span>practical <\/span>example <\/span>of <\/span>how <\/span>such <\/span>calculations <\/span>are <\/span>performed.<\/span><\/p>\n

1. <\/span>Mistake – <\/span>incorrectly <\/span>determining <\/span>the <\/span>length <\/span>of <\/span>annual <\/span>leave<\/span><\/h2>\n

According <\/span>to <\/span>the <\/span>Labour <\/span>Law, <\/span>every <\/span>employee <\/span>is <\/span>entitled <\/span>to <\/span>annual <\/span>paid <\/span>leave <\/span>of <\/span>not <\/span>less <\/span>than <\/span>four <\/span>calendar <\/span>weeks (<\/span>28 <\/span>calendar <\/span>days), <\/span>excluding <\/span>public <\/span>holidays.<\/span><\/p>\n

It <\/span>is <\/span>important <\/span>to <\/span>remember <\/span>that <\/span>part-<\/span>time <\/span>work <\/span>does <\/span>not <\/span>affect <\/span>the <\/span>length <\/span>of <\/span>annual <\/span>leave<\/span><\/strong>. <\/span>An <\/span>employee <\/span>working <\/span>part-<\/span>time <\/span>is <\/span>entitled <\/span>to <\/span>the <\/span>same <\/span>leave <\/span>period <\/span>as <\/span>an <\/span>employee <\/span>working <\/span>full-<\/span>time.<\/span><\/p>\n

The <\/span>only <\/span>difference <\/span>is <\/span>the <\/span>amount <\/span>of <\/span>vacation <\/span>pay, <\/span>which <\/span>is <\/span>calculated <\/span>based <\/span>on <\/span>the <\/span>employee\u2019s <\/span>actual <\/span>remuneration.<\/span><\/p>\n

2. <\/span>Mistake – <\/span>incorrectly <\/span>determining <\/span>the <\/span>basis <\/span>for <\/span>calculating <\/span>average <\/span>earnings<\/span><\/h2>\n

Vacation <\/span>pay <\/span>is <\/span>calculated <\/span>using <\/span>the <\/span>employee\u2019s <\/span>average <\/span>earnings<\/span><\/strong>.<\/span><\/p>\n

Average <\/span>earnings <\/span>are <\/span>calculated <\/span>based <\/span>on <\/span>the <\/span>last <\/span>six <\/span>calendar <\/span>months <\/span>before <\/span>the <\/span>start <\/span>of <\/span>the <\/span>leave<\/span><\/strong>, <\/span>taking <\/span>into <\/span>account:<\/span><\/p>\n

    \n
  • \n

    salary<\/span><\/p>\n<\/li>\n

  • \n

    additional <\/span>payments (<\/span>for <\/span>example, <\/span>overtime, <\/span>night <\/span>work, <\/span>or <\/span>work <\/span>on <\/span>public <\/span>holidays)<\/span><\/p>\n<\/li>\n

  • \n

    bonuses<\/span><\/p>\n<\/li>\n<\/ul>\n

    The <\/span>following <\/span>are <\/span>not <\/span>included<\/span><\/strong> in <\/span>the <\/span>calculation <\/span>of <\/span>average <\/span>earnings:<\/span><\/p>\n

      \n
    • \n

      previously <\/span>paid <\/span>vacation <\/span>pay<\/span><\/p>\n<\/li>\n

    • \n

      sick <\/span>pay<\/span><\/p>\n<\/li>\n

    • \n

      various <\/span>allowances<\/span><\/p>\n<\/li>\n

    • \n

      compensations<\/span><\/p>\n<\/li>\n<\/ul>\n

      If <\/span>the <\/span>employee <\/span>has <\/span>not <\/span>worked <\/span>for <\/span>six <\/span>months, <\/span>the <\/span>average <\/span>earnings <\/span>are <\/span>calculated <\/span>based <\/span>on <\/span>the <\/span>actual <\/span>period <\/span>worked<\/span><\/strong>.<\/span><\/p>\n

      3. <\/span>Mistake – <\/span>incorrect <\/span>calculation <\/span>of <\/span>average <\/span>earnings <\/span>after <\/span>a <\/span>long-<\/span>term <\/span>absence<\/span><\/h2>\n

      In <\/span>practice, <\/span>questions <\/span>often <\/span>arise <\/span>about <\/span>how <\/span>to <\/span>calculate <\/span>average <\/span>earnings <\/span>in <\/span>situations <\/span>where <\/span>an <\/span>employee <\/span>has <\/span>been <\/span>on <\/span>a <\/span>long-<\/span>term <\/span>absence <\/span>before <\/span>taking <\/span>annual <\/span>leave, <\/span>for <\/span>example, <\/span>parental <\/span>leave.<\/span><\/p>\n

      The <\/span>most <\/span>common <\/span>mistake <\/span>is <\/span>attempting <\/span>to <\/span>calculate <\/span>average <\/span>earnings <\/span>based <\/span>on <\/span>the <\/span>last <\/span>six <\/span>calendar <\/span>months, <\/span>even <\/span>if <\/span>the <\/span>employee <\/span>did <\/span>not <\/span>receive <\/span>any <\/span>remuneration <\/span>during <\/span>that <\/span>period.<\/span><\/p>\n

      In <\/span>such <\/span>cases, <\/span>the <\/span>average <\/span>earnings <\/span>should <\/span>be <\/span>calculated <\/span>based <\/span>on <\/span>the <\/span>remuneration <\/span>received <\/span>during <\/span>the <\/span>six <\/span>calendar <\/span>months <\/span>before <\/span>the <\/span>start <\/span>of <\/span>the <\/span>justified <\/span>absence <\/span>period<\/span><\/strong>.<\/span><\/p>\n

      If, <\/span>after <\/span>a <\/span>long-<\/span>term <\/span>absence, <\/span>the <\/span>employee <\/span>has <\/span>resumed <\/span>work <\/span>and <\/span>has <\/span>worked <\/span>for <\/span>less <\/span>than <\/span>six <\/span>months, <\/span>the <\/span>average <\/span>earnings <\/span>should <\/span>be <\/span>calculated <\/span>based <\/span>on <\/span>the <\/span>actual <\/span>period <\/span>worked<\/span><\/strong>.<\/span><\/p>\n

      This <\/span>approach <\/span>ensures <\/span>that <\/span>vacation <\/span>pay <\/span>is <\/span>calculated <\/span>fairly <\/span>and <\/span>reflects <\/span>the <\/span>employee\u2019s <\/span>previous <\/span>level <\/span>of <\/span>remuneration.<\/span><\/p>\n

      4. <\/span>Mistake – <\/span>confusing <\/span>daily <\/span>and <\/span>hourly <\/span>average <\/span>earnings<\/span><\/h2>\n

      In <\/span>calculating <\/span>vacation <\/span>pay, <\/span>the <\/span>following <\/span>may <\/span>be <\/span>used:<\/span><\/p>\n

        \n
      • \n

        daily <\/span>average <\/span>earnings<\/span><\/p>\n<\/li>\n

      • \n

        hourly <\/span>average <\/span>earnings<\/span><\/p>\n<\/li>\n<\/ul>\n

        Daily <\/span>average <\/span>earnings <\/span>are <\/span>calculated <\/span>by <\/span>dividing <\/span>the <\/span>total <\/span>remuneration <\/span>for <\/span>the <\/span>last <\/span>six <\/span>months <\/span>by <\/span>the <\/span>number <\/span>of <\/span>working <\/span>days <\/span>actually <\/span>worked <\/span>during <\/span>that <\/span>period.<\/span><\/p>\n

        Hourly <\/span>average <\/span>earnings <\/span>are <\/span>calculated <\/span>by <\/span>dividing <\/span>the <\/span>total <\/span>remuneration <\/span>by <\/span>the <\/span>number <\/span>of <\/span>hours <\/span>worked.<\/span><\/p>\n

        If <\/span>an <\/span>employee <\/span>has <\/span>a <\/span>summarised <\/span>working <\/span>time <\/span>arrangement<\/span> or <\/span>a <\/span>variable <\/span>work <\/span>schedule, <\/span>in <\/span>practice <\/span>hourly <\/span>average <\/span>earnings <\/span>are <\/span>often <\/span>used, <\/span>from <\/span>which <\/span>the <\/span>daily <\/span>average <\/span>earnings <\/span>are <\/span>then <\/span>calculated.<\/span><\/p>\n

        5. <\/span>Mistake – <\/span>incorrectly <\/span>determining <\/span>the <\/span>number <\/span>of <\/span>paid <\/span>leave <\/span>days<\/span><\/h2>\n

        A <\/span>common <\/span>mistake <\/span>is <\/span>the <\/span>assumption <\/span>that <\/span>vacation <\/span>pay <\/span>is <\/span>calculated <\/span>for <\/span>all <\/span>28 <\/span>calendar <\/span>days.<\/span><\/p>\n

        In <\/span>fact, <\/span>vacation <\/span>pay <\/span>is <\/span>calculated <\/span>based <\/span>on <\/span>the <\/span>working <\/span>days <\/span>during <\/span>the <\/span>leave <\/span>period<\/span><\/strong>, <\/span>not <\/span>all <\/span>calendar <\/span>days.<\/span><\/p>\n

        For <\/span>example, <\/span>if <\/span>an <\/span>employee <\/span>works <\/span>a <\/span>five-<\/span>day <\/span>working <\/span>week, <\/span>four <\/span>calendar <\/span>weeks <\/span>usually <\/span>correspond <\/span>to <\/span>20 <\/span>paid <\/span>working <\/span>days<\/span><\/strong>.<\/span><\/p>\n

        6. <\/span>Mistake \u2013 <\/span>failure <\/span>to <\/span>comply <\/span>with <\/span>the <\/span>deadline <\/span>for <\/span>paying <\/span>vacation <\/span>pay<\/span><\/h2>\n

        The <\/span>Labour <\/span>Law <\/span>provides <\/span>that <\/span>vacation <\/span>pay <\/span>and <\/span>remuneration <\/span>for <\/span>the <\/span>period <\/span>up <\/span>to <\/span>the <\/span>start <\/span>of <\/span>the <\/span>leave <\/span>must <\/span>be <\/span>paid <\/span>no <\/span>later <\/span>than <\/span>one <\/span>day <\/span>before <\/span>the <\/span>leave <\/span>begins<\/span>.<\/span><\/p>\n

        An <\/span>exception <\/span>applies <\/span>if <\/span>the <\/span>employee <\/span>submits <\/span>a <\/span>written <\/span>request<\/span> asking <\/span>for <\/span>the <\/span>payment <\/span>to <\/span>be <\/span>made <\/span>at <\/span>another <\/span>time, <\/span>for <\/span>example <\/span>on <\/span>the <\/span>next <\/span>salary <\/span>payment <\/span>date.<\/span><\/p>\n

        Practical <\/span>example: <\/span>calculating <\/span>vacation <\/span>pay <\/span>for <\/span>a <\/span>part-<\/span>time <\/span>employee<\/span><\/h2>\n

        Below <\/span>is <\/span>an <\/span>example <\/span>of <\/span>how <\/span>vacation <\/span>pay <\/span>is <\/span>calculated <\/span>for <\/span>an <\/span>employee <\/span>working <\/span>part-<\/span>time <\/span>with <\/span>a <\/span>variable <\/span>work <\/span>schedule:<\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n
        Period<\/strong><\/td>\nCalendar <\/span>working <\/span>days<\/span><\/strong><\/td>\nDays <\/span>worked<\/span><\/strong><\/td>\nCalendar <\/span>working <\/span>hours<\/span><\/strong><\/td>\nHours worked<\/strong><\/td>\nCalculated gross salary (EUR)<\/strong><\/td>\n<\/tr>\n
        February<\/td>\n20<\/td>\n12<\/td>\n160<\/td>\n79<\/td>\n984<\/td>\n<\/tr>\n
        March<\/td>\n22<\/td>\n8<\/td>\n176<\/td>\n54<\/td>\n696<\/td>\n<\/tr>\n
        April<\/td>\n20<\/td>\n6<\/td>\n158<\/td>\n46<\/td>\n480<\/td>\n<\/tr>\n
        May<\/td>\n19<\/td>\n6<\/td>\n152<\/td>\n48<\/td>\n504<\/td>\n<\/tr>\n
        June<\/td>\n20<\/td>\n10<\/td>\n159<\/td>\n63<\/td>\n720<\/td>\n<\/tr>\n
        July<\/td>\n23<\/td>\n15<\/td>\n184<\/td>\n119<\/td>\n1116<\/td>\n<\/tr>\n
        Total<\/strong><\/td>\n124<\/strong><\/td>\n57<\/strong><\/td>\n989<\/strong><\/td>\n409<\/strong><\/td>\n4500<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

        1. <\/span>Calculate <\/span>the <\/span>hourly <\/span>average <\/span>earnings<\/span><\/strong><\/p>\n

        Hourly <\/span>average <\/span>earnings:<\/span><\/p>\n

        Gross <\/span>remuneration \u00f7 <\/span>hours <\/span>worked = <\/span>4500 \u20ac \u00f7 <\/span>409 <\/span>hours = <\/span>11 \u20ac <\/span>per <\/span>hour<\/span><\/strong><\/p>\n

        2. <\/span>Calculate <\/span>the <\/span>average <\/span>number <\/span>of <\/span>hours <\/span>worked <\/span>per <\/span>working <\/span>day<\/span><\/strong><\/p>\n

        Hours <\/span>worked \u00f7 <\/span>calendar <\/span>working <\/span>days <\/span>during <\/span>the <\/span>6-<\/span>month <\/span>period*<\/strong> = <\/span>409 <\/span>hours \u00f7 <\/span>124 <\/span>working <\/span>days = <\/span>3.30 <\/span>hours <\/span>per <\/span>day<\/span><\/strong><\/p>\n

        *<\/strong>When <\/span>calculating <\/span>the <\/span>average <\/span>number <\/span>of <\/span>hours <\/span>worked <\/span>per <\/span>working <\/span>day, <\/span>it <\/span>is <\/span>important <\/span>to <\/span>consider <\/span>whether <\/span>the <\/span>employee <\/span>had <\/span>any <\/span>justified <\/span>absences <\/span>during <\/span>this <\/span>period (<\/span>for <\/span>example, <\/span>sick <\/span>leave, <\/span>annual <\/span>leave, <\/span>or <\/span>other <\/span>absences <\/span>provided <\/span>for <\/span>by <\/span>the <\/span>Labour <\/span>Law). <\/span>In <\/span>such <\/span>cases, <\/span>the <\/span>respective <\/span>days <\/span>are <\/span>excluded <\/span>from <\/span>the <\/span>number <\/span>of <\/span>calendar <\/span>working <\/span>days <\/span>and <\/span>a <\/span>reduced <\/span>number <\/span>of <\/span>working <\/span>days <\/span>is <\/span>used <\/span>in <\/span>the <\/span>calculation.<\/span><\/em><\/p>\n

        3. <\/span>Calculate <\/span>the <\/span>daily <\/span>average <\/span>earnings<\/span><\/strong><\/p>\n

        Hourly <\/span>average <\/span>earnings \u00d7 <\/span>average <\/span>number <\/span>of <\/span>hours <\/span>worked <\/span>per <\/span>working <\/span>day = <\/span>11 \u20ac \u00d7 <\/span>3.30 = <\/span>36.28 \u20ac<\/span><\/strong><\/p>\n

        4. <\/span>Calculate <\/span>vacation <\/span>pay<\/span><\/strong><\/p>\n

        If <\/span>an <\/span>employee <\/span>is <\/span>granted <\/span>annual <\/span>leave <\/span>for <\/span>four <\/span>calendar <\/span>weeks <\/span>and <\/span>there <\/span>are <\/span>20 <\/span>paid <\/span>working <\/span>days<\/span><\/strong> during <\/span>this <\/span>period:<\/span><\/p>\n

        36.28 \u20ac \u00d7 <\/span>20 = <\/span>725.60 \u20ac<\/span><\/strong><\/p>\n

        Therefore, <\/span>the <\/span>employee <\/span>will <\/span>receive <\/span>725.60 \u20ac <\/span>in <\/span>vacation <\/span>pay<\/span><\/strong> for <\/span>the <\/span>leave <\/span>period.<\/span><\/p>\n

        Conclusion<\/h1>\n

        The <\/span>calculation <\/span>of <\/span>vacation <\/span>pay <\/span>for <\/span>part-<\/span>time <\/span>employees <\/span>is <\/span>based <\/span>on <\/span>the <\/span>same <\/span>principles <\/span>as <\/span>for <\/span>full-<\/span>time <\/span>employees.<\/span> However, <\/span>in <\/span>practice, <\/span>errors <\/span>often <\/span>occur <\/span>when <\/span>average <\/span>earnings, <\/span>the <\/span>number <\/span>of <\/span>paid <\/span>days, <\/span>or <\/span>the <\/span>calculation <\/span>period <\/span>are <\/span>determined <\/span>incorrectly.<\/span><\/p>\n

        Therefore, <\/span>when <\/span>calculating <\/span>vacation <\/span>pay, <\/span>it <\/span>is <\/span>essential <\/span>to <\/span>correctly <\/span>determine <\/span>the <\/span>average <\/span>earnings <\/span>calculation <\/span>period <\/span>and <\/span>apply <\/span>the <\/span>calculation <\/span>method <\/span>established <\/span>by <\/span>the <\/span>Labour <\/span>Law.<\/span><\/p>\n

        If <\/span>you <\/span>want <\/span>to <\/span>ensure <\/span>that <\/span>payroll <\/span>calculations, <\/span>leave <\/span>records, <\/span>and <\/span>the <\/span>determination <\/span>of <\/span>average <\/span>earnings <\/span>in <\/span>your <\/span>company <\/span>are <\/span>carried <\/span>out <\/span>correctly <\/span>and <\/span>in <\/span>compliance <\/span>with <\/span>regulatory <\/span>requirements \u2013 <\/span>contact <\/span>us.<\/span><\/strong><\/p>\n

        We <\/span>help <\/span>companies <\/span>organise <\/span>payroll <\/span>and <\/span>personnel <\/span>records <\/span>accurately, <\/span>legally <\/span>compliant, <\/span>and <\/span>without <\/span>unnecessary <\/span>risks.<\/span><\/strong><\/p>\n

        Accuracy <\/span>in <\/span>payroll <\/span>and <\/span>employment <\/span>law <\/span>matters – <\/span>it <\/span>is <\/span>an <\/span>investment <\/span>in <\/span>your <\/span>company\u2019s <\/span>security.<\/span><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

        Part-time employment in Latvia is becoming increasingly common. It provides flexibility for both employers and employees, but in practice questions often arise about how to correctly calculate vacation pay and determine average earnings. The Labour Law provides that employees working part-time have the same rights to annual paid leave as employees working full-time. However, calculation […]<\/p>\n","protected":false},"author":5,"featured_media":564,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[3],"tags":[],"class_list":["post-565","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles"],"acf":[],"_links":{"self":[{"href":"https:\/\/amberfy.lv\/en\/wp-json\/wp\/v2\/posts\/565","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/amberfy.lv\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/amberfy.lv\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/amberfy.lv\/en\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/amberfy.lv\/en\/wp-json\/wp\/v2\/comments?post=565"}],"version-history":[{"count":5,"href":"https:\/\/amberfy.lv\/en\/wp-json\/wp\/v2\/posts\/565\/revisions"}],"predecessor-version":[{"id":571,"href":"https:\/\/amberfy.lv\/en\/wp-json\/wp\/v2\/posts\/565\/revisions\/571"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/amberfy.lv\/en\/wp-json\/wp\/v2\/media\/564"}],"wp:attachment":[{"href":"https:\/\/amberfy.lv\/en\/wp-json\/wp\/v2\/media?parent=565"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/amberfy.lv\/en\/wp-json\/wp\/v2\/categories?post=565"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/amberfy.lv\/en\/wp-json\/wp\/v2\/tags?post=565"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}