Compensation for Unused Vacation Upon Dismissal in Kazakhstan: When It’s Paid and How to Calculate It

Each year, employees are entitled to paid annual leave — a time to rest and avoid burnout. 

But what happens if you leave your job without using all your days off? In such cases, you are legally entitled to compensation for unused vacation.

How to Calculate Vacation Compensation Upon Dismissal

When an employee resigns, the employer has two options:

1. 1. Allow the employee to use their remaining vacation before dismissal.
2. 2. Pay compensation for the unused days if vacation doesn’t fit the timeline.

Note: This only applies upon dismissal. Intentionally skipping vacation to get paid later is not permitted — the Labor Code of Kazakhstan prohibits skipping leave for more than two consecutive years.

Calculation Method: Key Details

The formula is based on the employee’s average daily earnings.

Step-by-step:

1. 1. Add up all income for the past 12 months.
2. 2. Divide it by the total working days (or hours) for the same period.
3. 3. Multiply the daily average by the number of unused vacation days.
   
   

For faster and more accurate results, use an online vacation calculator. It requires your start and end dates, entitled vacation period, and optionally excludes unpaid periods.

Only working days are included when calculating unused vacation.

Unpaid Leave: Is It Counted?

No. Unpaid leave (“at own expense”) is not included in the employment period used to calculate vacation compensation.

Only the following are counted:

• Time when the employee works
• Time with preserved job and salary
• Medical leave or maternity leave
• Periods of reinstatement after wrongful termination

Since unpaid leave doesn’t meet these criteria, it’s excluded from compensation calculations.

Are Unused Vacation Days Rounded?

When calculating unused vacation upon dismissal, the result often includes a decimal — for example, 20.6 days. However, vacation is always granted and paid in full calendar days, so the total must be rounded according to the following rules:

• If the decimal part is between 0.1 and 0.4, the number is rounded down.
  Example: 20.3 days → 20 days

• If the decimal is between 0.5 and 0.9, the number is rounded up.
  Example: 20.6 days → 21 days

Is Compensation for Unused Vacation Taxed?

Yes. Under Kazakhstan's labor law, any income from employment — including vacation compensation — is taxable. The following deductions apply:

• 10% Individual Income Tax (IIT)
• 10% Mandatory Pension Contributions
• 9.5% Social Tax (if applicable under the company’s tax regime)
• 3.5% Social Insurance Contributions
• 2% Mandatory Health Insurance Contributions

This means that compensation is treated the same as salary, and all standard deductions apply.

When Is Compensation Paid?

Compensation for unused vacation must be paid within 3 business days after dismissal.

If you're leaving a job with unused vacation days, you're entitled to compensation. The amount is calculated based on your average daily earnings and is subject to the same taxes as salary. The easiest way to calculate the amount is via an online calculator — just enter your employment dates and vacation allowance.