How is the annual-leave allowance calculated?
Quick answer
- The leave allowance is the daily average of income over the last 3 months times the number of leave days.
- The daily average divides income by the number of working days in those 3 months.
- The allowance cannot be lower than the base salary for the leave period.
- The money is paid at least 5 working days before the leave starts.
- Besides base salary, permanent-character bonuses are included in the average.
What the law says
- Art. 150 Labour Code: allowance = daily average of income over the last 3 months × leave days.
- The leave allowance cannot be lower than the base salary for that period.
- The allowance is paid at least 5 working days before the leave begins.
- The calculation base includes base salary and permanent-character bonuses.
- The leave allowance is income assimilated to salary and is taxed accordingly.
Practical examples
- Example: with 18,000 lei income over 3 months and 63 working days, the daily average is ≈ 285.7 lei.
- Example: for 10 leave days, the resulting allowance is 285.7 × 10 ≈ 2,857 lei.
- Example: if the computed average were below the base salary for those days, the base salary is paid.
- Example: leave starting on 20 June must be paid by 13 June (5 working days in advance).
Common mistakes
- Calculating the allowance on base salary only, ignoring permanent bonuses from the last 3 months.
- Paying the allowance together with the monthly salary instead of 5 days before the leave.
- Granting an allowance lower than the base salary for the leave period.
- Using the wrong period — months other than the last 3 before the leave.
How 4softhr helps
- 4softhr automatically computes the daily average from the last 3 months' income drawn from payroll.
- It applies the minimum rule — never below the base salary for the leave period.
- It automatically includes permanent-character bonuses in the allowance calculation base.
- It alerts when a leave request approaches the 5-day-advance payment deadline.
- It links the allowance to the leave balance and the payroll module in the 4b2b ecosystem.