The calculation of annual paid leave for employees in the private sector

Written on October 13, 2025.

The calculation of annual paid leave for employees in the private sector is determined by Legislative Decree 539/1945, as amended and currently in force, with significant modifications introduced by Laws 3144/2003, 3227/2004, and 3302/2004, and now included in the Labour Code (Presidential Decree 62/2025).

According to the applicable legislation:

Establishment of the right to leave:

Every employee is entitled to paid annual leave from the commencement of their employment with the enterprise, without the requirement of a minimum period of service.
During the first calendar year (year of hiring), the employee is entitled to a portion of the annual paid leave, proportionate to the duration of their employment within that year.

Calculation of leave days:

For a five-day work week: The base entitlement is 20 working days per year.
For a six-day work week: The base entitlement is 24 working days per year.

The calculation is as follows:

First calendar year (year of hiring):
The employee is entitled to a proportional part of the annual leave based on months of employment.
Formula:
(Annual leave days ÷ 12) × months of employment

Second calendar year:
The employee is entitled to the proportional part of the annual leave for the period up to the completion of 12 months from the date of hiring.
This leave is increased by one (1) additional working day.

Subsequent calendar years:
From January 1st of each year, the employee is entitled to the full annual leave.
The leave increases by one (1) additional working day for each year of employment beyond the first.
The maximum entitlement is:

22 working days for a five-day work week
26 working days for a six-day work week

Timing of leave:

The employer is obliged to grant the proportional leave entitlement by the end of the first calendar year during which the employee was hired.
Leave not granted within the year may be taken within the first quarter of the following year.

Special cases:

Intermittent or part-time employment: The employee is entitled each calendar year to paid leave equal to 1/12 of the annual entitlement for each month of employment.
Seasonal employment: For employees in seasonal work in hotel enterprises, paid leave is set at two (2) days per month of employment, with a maximum of one (1) month per year.

It is noted that days of absence due to short-term illness, military service, participation in lawful strikes, force majeure, or other significant reasons are not offset against the annual paid leave days.