Business News 

Extra day of leave announced in 2021 Budget does not go into effect until 2022

16th November 2020

The amount of leave entitlement is being calculated based on the number of public holidays falling at the weekend, with a maximum of four extra vacation days which have been added by Government in four consecutive budgets

In the 2021 Budget, it was announced, for the fourth year in a row, that another day of leave would be granted to workers in lieu of public holidays falling on a weekend.

While workers welcomed the news, businesses expressed concern that with extreme challenges to their operations owing to COVID-19 related disruptions, adding an extra day of leave does little to assist employers to avoid redundancies and limit costs.

Employers may breathe a sigh of relief, however, as it has been confirmed that the fourth day of extra leave added will not go into effect in 2021, since there are only three public holidays falling on a weekend in 2021.

As can be confirmed from the Department of Industrial and Employment Relations (DIER) website:

“With effect from 1st January 2020, an employee with a 40-hour working week is entitled to 216 hours of paid annual leave; that is, the 192hrs basic leave entitlement + 24hrs in lieu of the 3 Public Holidays that fall on weekends.”
216 hours of paid leave adds up to 27 workdays, the total amount granted in the 2020 Budget.

Based on the number of public holidays falling on weekends, vacation leave entitlement can be calculated for the following years:

• In 2021, an employee with a 40-hour working week is entitled to 216 hours of paid annual leave; that is,192hrs basic leave entitlement + 24hrs in lieu of the three Public Holidays that fall on weekends.
• In 2022, an employee with a 40-hour working week is entitled to 224 hours of paid annual leave; that is,192hrs basic leave entitlement + 32hrs in lieu of the four Public Holidays that fall on weekends.
• In 2023, an employee with a 40-hour working week is entitled to 208 hours of paid annual leave; that is, 192hrs basic leave entitlement + 16hrs in lieu of the two Public Holidays that fall on weekends.”

As can be seen, 2023 actually sees the lowest number of vacation leave entitlement, in view of just two public holidays that fall on weekends.


Extra day of leave announced in 2021 Budget does not go into effect until 2022