SALARY GUIDE
Why is holiday pay included in every salary?
When you invoice without a company through WorkNode, holiday pay is paid together with your salary. It is not held in a separate holiday pot until the summer.
01 · IN PRACTICE
How it works in practice
The Annual Leave Act gives a right to holiday. For a short employment, such as umbrella employment per assignment, holiday pay can be paid as the work proceeds instead of being saved for paid leave later. The pay is 12 percent and is included in gross salary.
Under WorkNode FLEX, net salary and holiday pay are paid directly once the client has paid the invoice, and no later than the last weekday of the month. The amount is not held until the summer.
Under WorkNode PRO, the collective agreement’s rules on pay, holiday and supplements apply if you have pre-registered the assignment and are covered by the agreement. If you have not pre-registered, the same terms as FLEX apply, and holiday pay is paid directly with the salary.
Preliminary tax is withheld from the whole gross salary, including holiday pay. Employer contributions are an employer cost on the salary basis. They are separate from the tax withheld from your salary. The calculator’s net amount is an estimate, not a final tax assessment.
Read the FLEX terms, section 6 →02 · PAYSLIP
How to read it on your payslip
Gross salary on the payslip is salary before preliminary tax. The 12 percent holiday pay is included in that gross salary. It is not an extra amount on top of the invoice.
The invoice excluding VAT has to cover WorkNode’s fee, employer contributions and the gross salary. Holiday pay is part of the gross salary, so it appears in the salary basis rather than as a separate pot beside the payout.
Preliminary tax is withheld from the whole gross salary. Net salary is the amount after that deduction. Open the payslip in your account to see the lines for a particular payout.
| Line | What it means |
|---|---|
| Gross salary | Salary before preliminary tax, including holiday pay |
| Holiday pay | 12 percent included in gross salary, not a surcharge on the invoice |
| Preliminary tax | Withheld from the whole gross salary, including holiday pay |
| Employer contributions | An employer cost on the salary basis, not a deduction from net salary |
| Net salary | The amount after preliminary tax |
03 · TIME OFF
Planning time off as a freelancer
Because holiday pay is paid as you go, nothing is left in a separate pot when you take weeks without an assignment. If you want unpaid time off, set a buffer aside yourself.
Use the salary calculator to estimate gross and net salary for a planned invoice amount. The result is an estimate. Your actual payout depends on the selected plan, verified details and current rules.
Estimate a buffer in the salary calculator →FREQUENTLY ASKED QUESTIONS
Common questions about holiday pay
- Why is holiday pay not saved until the summer?
For this kind of short employment, holiday pay is paid as the work proceeds instead of being saved for later paid leave. The FLEX terms say that net salary and holiday pay are paid directly once the client has paid the invoice.
- Is 12 percent added on top of the invoice?
No. The 12 percent is included in gross salary. The invoice excluding VAT has to cover the fee, employer contributions and that gross salary. Holiday pay does not increase the invoice amount.
- Is holiday pay taxed?
Yes. Preliminary tax is withheld from the whole gross salary, including holiday pay. Employer contributions are calculated on the salary basis and are a cost for WorkNode as employer, not an extra tax line taken from your net salary.
- Does PRO pay holiday pay the same way?
If you have pre-registered the assignment and are covered by the collective agreement, that agreement’s holiday terms apply. If you have not pre-registered, the same direct payout as FLEX applies. Contact support if you are unsure which terms cover your assignment.
Want to see what the invoice could become as salary?
Calculate the amount, or read how an invoice becomes gross and net salary.