Anyone who works on an hourly basis in Switzerland is entitled to holiday pay. This sounds simple, but it regularly causes disputes in practice. What percentage are you entitled to? What is the difference to public holiday compensation? And how is it shown on the payslip? This guide explains holiday pay in Switzerland for hourly workers, employers, and the self-employed — with concrete CHF examples, legal references, and formulas you can apply directly.

Holiday pay is regulated in the Swiss Code of Obligations (OR). If you work on an hourly basis, your wages are paid per hour, but you still have a statutory right to holidays. Since holidays are not automatically compensated in hourly work, the employer must add a surcharge to the hourly wage — the so-called holiday pay. It is either calculated as a percentage of the gross wages or integrated as a flat-rate surcharge into the hourly wage.

The most important points at a glance:

• Holiday pay for 4 weeks holiday: 8.33% of gross wages
• For 5 weeks holiday: 10.64%, for 6 weeks: 13.04%
• Public holiday compensation comes in addition to holiday pay
• Must be shown separately on the payslip — "incl. holidays" is not enough
• CHF 30.00 hourly wage → CHF 2.50 holiday pay per hour (at 8.33%)

What is holiday pay?

Holiday pay is the monetary compensation of the statutory holiday entitlement. It applies when an employee does not actually take their holidays but is paid for the holiday days — or, which is more common in hourly work, when the holiday entitlement is settled directly as a percentage surcharge on the wages.

The legal framework is set out in the Swiss Code of Obligations (OR). OR Art. 329a regulates the minimum holiday entitlement: at least 4 weeks per year for all employees aged 20 and over, 5 weeks for young people up to 20 and for employees aged 50 and over, provided this is contractually agreed. The concrete calculation of the holiday entitlement is regulated in OR Art. 329b. You can find the current wording on admin.ch under SR 220 (Code of Obligations).

Who gets holiday pay? In principle, all employees. But for hourly work it is particularly relevant, because here the wages are due directly per hour worked — and the holiday days are not separately compensated as "days off with pay." Instead, the holiday entitlement is calculated as a percentage of the gross wages. This means: every hour worked triggers a small holiday wage component, which is either shown separately or incorporated as a flat-rate surcharge into the hourly wage.

The difference to a monthly salary is obvious: with a monthly salary, you continue to receive your fixed salary during holidays. You do not work, but you still get the full pay. That is the classic form of holiday compensation. In hourly work, you work, and when you take time off, you earn nothing for those hours — unless the holiday pay is structured as a surcharge. That is why holiday pay is so important in hourly work.

Holiday pay is not the same as public holiday compensation, although both are often mentioned in the same breath. Holiday pay refers to the contractual holiday days, while public holiday compensation refers to the statutory public holidays. Both surcharges apply separately, both must be calculated and shown separately. More on that later.

For hourly workers there are two common models: either the employer pays the hourly wage plus a separate holiday pay surcharge on the payslip — or the employer integrates the holiday pay as a flat-rate surcharge into the hourly wage. Both are legally permissible as long as the amount is correctly calculated and transparently shown. That said, experts strongly recommend showing holiday pay separately, because only then is it possible to verify that it was calculated correctly.

Calculating holiday pay: formula and percentages

The calculation of holiday pay is based on a simple principle: the holiday days are set in relation to the total available working days. This gives a percentage that is added to the gross wages.

The basic formula is:

Holiday days / (260 − holiday days) × 100 = holiday pay in %

The 260 is composed of 52 weeks × 5 working days = 260 working days per year. The holiday days are deducted from this because no work is done on holidays. The ratio of holiday days to the remaining working days gives the percentage.

Some sources calculate with 240 instead of 260 days. This is because in some industries the public holidays are already deducted from the total. For pure holiday pay, the calculation with 260 days is the correct method, provided no public holidays are deducted. The Federal Statistical Office and the cantonal labour offices usually work with 260 days. But always check which convention applies in your canton.

The percentages for the most common holiday entitlements:

The calculation for 4 weeks: 20 / (260 − 20) × 100 = 20 / 240 × 100 = 8.33%. For 5 weeks: 25 / (260 − 25) × 100 = 25 / 235 × 100 = 10.64%. For 6 weeks: 30 / (260 − 30) × 100 = 30 / 230 × 100 = 13.04%.

These three values are the most important ones to remember. Most hourly workers in Switzerland have 4 weeks holiday and therefore 8.33% holiday pay. Anyone with 5 weeks — typically people over 50 or young people under 20 — gets 10.64%. Six weeks are rare but occur in some collective labour agreements.

How to calculate the surcharge per hour:

Hourly wage × holiday pay percentage = surcharge per hour

Example: you earn CHF 30.00 per hour and have 4 weeks holiday. The calculation: CHF 30.00 × 0.0833 = CHF 2.50 holiday pay per hour. At 160 hours per month, that is 160 × CHF 2.50 = CHF 400.00 additional holiday pay per month.

With 5 weeks holiday and a CHF 30.00 hourly wage: CHF 30.00 × 0.1064 = CHF 3.19 per hour. At 160 hours per month = CHF 510.40 per month.

If you are already doing your hourly wage calculation, you can plan the holiday pay as a separate line item — or incorporate the surcharge directly into the hourly rate. Both are permissible as long as it is transparently documented.

Be careful with flat-rate surcharges: some employers integrate the holiday pay directly into the hourly wage — for example "CHF 33.00 incl. 8.33% holiday pay." This is legally permissible, but the payslip must clearly show how much of the hourly wage goes towards holiday pay. A simple "incl. holidays" without figures is not enough, as we will see shortly.

Public holiday compensation: the second surcharge

Public holiday compensation is the second surcharge that becomes relevant in hourly work. It is often confused with holiday pay, but it is a separate item that must be calculated and shown separately.

Public holiday compensation covers the statutory public holidays on which hourly workers do not work and therefore receive no wages. With a monthly salary, public holidays are included in the fixed salary. Not so in hourly work — which is why a surcharge is needed here too.

The number of statutory public holidays varies from canton to canton. The federal framework provides for eight public holidays (Art. 20a ArGV 1), but cantons can set additional holidays. Most cantons have 8 to 13 statutory public holidays. You can find an overview on the official website of the ESTV (Swiss Federal Tax Administration) under the cantonal holiday regulations.

The calculation of public holiday compensation:

Number of public holidays / (260 − holiday days − public holidays) × 100 = public holiday compensation in %

Example: 4 weeks holiday (20 days), 9 statutory public holidays: 9 / (260 − 20 − 9) × 100 = 9 / 231 × 100 = 3.90%.

This is a separate surcharge that is in addition to the 8.33% holiday pay. At a CHF 30.00 hourly wage, that is another CHF 30.00 × 0.0390 = CHF 1.17 per hour.

The total surcharge in this example would be 8.33% + 3.90% = 12.23% — i.e. CHF 3.67 per hour at a CHF 30.00 base wage. At 160 hours per month, that corresponds to CHF 587.20 in total.

This separation is crucial: both surcharges must be calculated separately and shown separately. Anyone who adds them together and states them as a flat "holiday and public holiday compensation" risks back-payments — especially when the number of public holidays changes or an employee claims more holiday days.

For a detailed overview of working hours, public holidays, and holiday entitlement, see our article on working hours and holidays in Switzerland.

Holiday pay on the payslip

The payslip is where the holiday pay must be transparently shown. This is not just a matter of fairness but a legal obligation. A note "incl. holidays" is not sufficient — the figures must be clearly visible.

What the payslip must contain:

• Gross wages (base wage × number of hours)
• Holiday pay (separate line, percentage visible)
• Public holiday compensation (if applicable, separate line)
• Total gross wages (base wage + surcharges)
• Social security contributions (AHV (Swiss social insurance)/IV/EO, ALV, pension fund)
• Net wages

If the surcharges are only integrated as a flat rate into the hourly wage, the payslip must still break down how much of it goes towards holiday and public holiday compensation. A simple "incl. holidays" without figures is not enough — various cantonal labour offices have confirmed this, and the AHV practice provisions also require a clean separation. More information on the AHV rules can be found on ahv.ch.

Example of a correct payslip for an hourly worker:

This payslip shows all components clearly and transparently. Both the employee and the authorities can see immediately how the wages are composed.

Holiday pay and public holiday compensation are subject to social security contributions on the full gross wages. This means: AHV (Swiss social insurance), ALV, and the pension fund are calculated on the base wage plus surcharges. The contributions are therefore higher than if only the base wage were decisive. This is a frequent stumbling block, especially for small employers who do their own payroll administration.

If you create or check payslips, it is worth using software that performs these calculations automatically. With Magic Heidi's invoicing tool you can map hourly wages, surcharges, and deductions transparently — without Excel spreadsheets that fall apart at the next audit.

Having holidays paid out: real-world examples

Figures and formulas are good — but real-world examples show what holiday pay actually looks like in everyday life. Here are three stories that make the calculation and the pitfalls concrete.

Lisa, graphic designer in Zurich

Lisa works as a graphic designer in a Zurich agency — on an hourly basis. Her hourly rate is CHF 45.00. She has 4 weeks holiday, i.e. 8.33% holiday pay.

Calculation per hour: CHF 45.00 × 0.0833 = CHF 3.75. At 160 hours per month: 160 × CHF 3.75 = CHF 600.00 additional holiday pay.

Lisa has the holiday pay shown separately every month. This way she knows how much money she is entitled to and can decide: does she want to actually take the holiday days and continue to draw her wages, or have the holiday days paid out? In hourly work this is a real choice, because the holiday days are not automatically linked to wages.

In the current year Lisa takes 2 weeks holiday and has the remaining 2 weeks paid out. The payout: 2 weeks = 10 holiday days. At 8 hours per day, that is 80 hours. 80 × CHF 45.00 = CHF 3,600.00. This is the wages she receives for the paid-out holiday days — in addition to the monthly holiday pay she already receives anyway.

Lisa documents her hours and holiday days with a simple tool. This helps her keep track and check the payslip. She knows the difference between working hours, holiday days, and overtime — you can find a practical guide on this in our article on overtime pay in Switzerland.

Marco, construction worker in Bern

Marco is 53 years old and works as a construction worker in Bern. Because he is over 50, he has 5 weeks holiday — i.e. 10.64% holiday pay. His hourly wage is CHF 35.00.

Calculation per hour: CHF 35.00 × 0.1064 = CHF 3.72. At 170 hours per month: 170 × CHF 3.72 = CHF 632.40.

Marco works in an industry where many employees are on hourly wages. His employer shows the holiday pay separately on the payslip — together with the public holiday compensation, which in Bern with 9 public holidays amounts to around 3.90%. At CHF 35.00, that is another CHF 1.37 per hour.

The total surcharge for Marco: 10.64% + 3.90% = 14.54%. At 170 hours and a CHF 35.00 base wage: 170 × CHF 35.00 × 0.1454 = CHF 865.13 per month — a considerable sum that is often overlooked.

Marco makes sure his employer shows the surcharges correctly. In the construction industry there are always cases where hourly workers do not receive the full holiday pay. Anyone who pays attention here can be short by a thousand francs over a year — or receive too much if they point it out to the employer.

Sarah, small agency owner

Sarah runs a small design agency and hires a designer on an hourly basis. She agrees on CHF 40.00 per hour and correctly accounts for holiday pay of 8.33% — but forgets the public holiday compensation.

The designer works an average of 160 hours per month in one year. Sarah pays 160 × CHF 40.00 = CHF 6,400.00 plus 8.33% holiday pay = CHF 533.12 each month. The public holiday compensation of 3.90% is missing: 160 × CHF 40.00 × 0.0390 = CHF 249.60 per month.

Over 12 months, that is 12 × CHF 249.60 = CHF 2,995.20 that Sarah underpaid the designer. After a complaint and an intervention by the cantonal labour office, Sarah has to make up the payments — plus a warning and the threat of a fine in case of a repeat.

The lesson: if you employ staff on an hourly basis, always account for both surcharges — holiday pay and public holiday compensation. Separate the calculation, show both separately, and check annually whether the number of public holidays has changed. What you should take into account when calculating the hourly wage we explain in a separate guide.

Sarah learned from this experience and now uses payroll software that automatically calculates both surcharges. The investment paid off — it saves time and avoids future back-payments. If you are interested in such a solution, you can take a look at Magic Heidi's prices — the software is significantly cheaper than many alternatives and calculates surcharges automatically.

Holiday pay for the self-employed: do you need it?

The self-employed are not employees — they have no statutory holiday entitlement and therefore no statutory holiday pay. No one pays you holiday pay when you are self-employed. But that does not mean holiday pay is irrelevant for the self-employed. On the contrary: there are two situations where you have to deal with it.

Situation 1: You hire employees on an hourly basis.

As soon as you employ someone on an hourly basis, the rules on holiday pay apply to you as an employer. You must calculate the surcharges, show them, and pay them out — just like any other employer. The story of Sarah above shows what happens when you forget this.

For self-employed people hiring employees for the first time, this is often a surprise. Payroll administration in hourly work is more complex than with a monthly salary, because the surcharges for holidays and public holidays must be calculated separately. Plan for these costs from the outset — otherwise back-payments and fines loom.

Situation 2: You want to calculate your hourly rate as a freelancer.

Even if no one pays you holiday pay as a self-employed person, you should include it in your calculation. Why? Because as a self-employed person you have to bear your own wages — including the time when you are not working. Anyone who does not plan for holiday pay is effectively working below their true value.

The rule of thumb: calculate your hourly rate so that it covers the holiday days. A simple example: if you take 4 weeks holiday per year and otherwise work full time, this corresponds to a surcharge of 8.33% on your hourly rate. Alternatively: divide your annual target income by the effectively available working hours — without holiday days. This way the holiday pay is automatically included in the price.

Concretely: if as a freelancer you charge CHF 80.00 per hour and plan 4 weeks holiday, you should actually charge CHF 80.00 × 1.0833 = CHF 86.66 to cover the holiday days. Or you work with the higher rate and show it as "incl. holidays" — but transparently, as described above.

This also applies to MWST (Swiss VAT): if as a self-employed person you issue invoices, the MWST of 8.1% (Swiss VAT) applies to the full amount — including the holiday pay, if you show it as a separate item. You can find a detailed guide on MWST (Swiss VAT) for the self-employed in our article on MWST for freelancers.

If you create invoices and want to show the surcharges cleanly, it is worth using software that does this automatically. With Magic Heidi's invoicing tool you can map hours, surcharges, and MWST (Swiss VAT) in a clean QR-Rechnung. This is significantly more efficient than a bexio alternative, which often costs more and is more complex.

Common mistakes and how to avoid them

Holiday pay is not complicated — but there are typical mistakes that regularly lead to disputes and back-payments. Here are the most common ones, and how to avoid them.

Mistake 1: "Incl. holidays" as a flat-rate note

The classic. The employment contract or payslip contains a note "hourly wage incl. holidays" — but without specifying what percentage goes towards holiday pay. This is not legally sufficient. The figures must be shown: percentage, amount per hour, total per month. Anyone who just writes "incl. holidays" risks back-payments if an employee does not recognise the surcharges.

Solution: Always show the holiday pay separately with the percentage and the amount. In the contract, on the payslip, and on every wage slip. No "incl. holidays" without figures.

Mistake 2: Forgetting public holiday compensation

As Sarah's story showed: public holiday compensation is often forgotten, especially by small employers. Holiday pay is calculated correctly, but the public holidays are missing. This can amount to thousands of francs over a year — and an audit threatens back-payments.

Solution: Always calculate both surcharges. List the statutory public holidays in your canton, check the percentage, and show it separately. If the number of public holidays changes — for example through a new cantonal holiday — adjust the calculation.

Mistake 3: Wrong number of holiday days

An employee has 5 weeks holiday, but the employer calculates with 4 weeks and 8.33% instead of 10.64%. This often happens when the contract is not clearly worded or the holiday entitlement changes — for example on a 50th birthday.

Solution: Clarify in the contract how many weeks of holiday apply. Check annually whether the entitlement has changed. Adjust the percentage as soon as a change occurs.

Mistake 4: Social security contributions calculated incorrectly

Holiday pay and public holiday compensation are part of the gross wages and are subject to social security contributions. Anyone who calculates the surcharges but only applies AHV (Swiss social insurance)/IV/EO and ALV to the base wage is making a mistake. The contributions must be calculated on the total gross wages — including surcharges.

Solution: Calculate the social security contributions on the total gross wages (base wage + holiday pay + public holiday compensation). Use payroll software or have the payslip checked by a specialist if you are unsure.

Mistake 5: No written agreement

Verbal agreements on holiday pay are difficult to enforce. If employer and employee are not in agreement, a written contract is crucial. If the contract is missing, the statutory minimum entitlements apply — and these may be higher than what was verbally agreed.

Solution: Record the holiday pay in writing in the employment contract. Percentage, calculation method, and how it is shown on the payslip. This protects both sides.

Mistake 6: Overlooking the statute of limitations

Holiday pay claims become time-barred after five years, like other wage claims (OR Art. 128). Anyone who has not demanded surcharges for years can no longer claim them retroactively for the entire period — but only for the last five years from the date the claim is made.

Solution: Report claims early. If as an employee you believe you are missing holiday pay, inform the employer in writing. This interrupts the statute of limitations.

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