The pay for the month of vacation should be calculated according to the normal or average remuneration.
- Employees who receive variable concepts each month (sales commissions, production incentives…) are entitled to receive an average of said concepts in their vacation payroll.
- Items intended to pay for a greater temporary dedication of workers, such as overtime or complementary hours, should not be included.
- And those concepts whose payment in the vacation payroll would mean a duplication in payment should not be included. For example, a bonus calculated based on annual objectives (as it is annual, your payment already includes the part corresponding to vacations).
That yes: the concepts that are included in the vacation pay must be habitual. And for these purposes, the courts consider that there is habituality when said concepts are satisfied in six or more months from among the previous eleven. For example, a night supplement that was charged for two months will not be included in vacation pay (at any rate). On the other hand, if that bonus was collected for eight months, it will also be included in full in vacation pay, as it is considered “usual”.
Finally, you must exclude items that are not of a salary nature. For example, a supplement for food that is paid to people on a split-day basis. This item is not of a salary nature but compensatory, so its payment during the month of vacation is excluded.
Our labor department will solve all the doubts that you may have regarding payroll and vacations