What is Vacation Pay and Why is it Important?
Publicerad 2024-12-06
Vacation pay is money you are entitled to. Here we explain what it means for you as a taxi driver.
As a taxi driver, you are entitled to vacation pay. But what does that actually mean – and how much money are we talking about?
What is vacation pay?
Vacation pay is money that your employer sets aside from your salary so you can take vacation while maintaining your income. If you leave your employment before taking vacation, you receive the money instead.
How much is it?
According to the Vacation Act, the compensation must be at least 12% of your earned salary.
If your taxi company has a collective agreement with Transport, the percentage can be higher – usually 13%. It may seem like a small difference, but over a year it becomes several thousand kronor.
Calculation example
If you earn 25,000 SEK/month on average during a year, your vacation pay will be:
- 12% (according to law): 36,000 SEK/year
- 13% (with collective agreement): 39,000 SEK/year
The difference is therefore 3,000 SEK extra per year with a collective agreement.
Important to consider
- Vacation pay should appear on your payslip
- When you leave employment, it must be paid no later than one month after
- Ask if your company has a collective agreement – it provides better terms
Keep track of your vacation pay. It's your money!
Read also: How is the salary calculated for a taxi driver at Bolt or Uber?
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