Common use of End of Year Clause in Contracts

End of Year. The calculation of this pay shall be performed at the end of December. Disbursement shall take place in connection with payment of salary at the end of January and accrue to taxation, holiday allowance and holiday pay accruals for this year. As the disbursement must be considered a salary component, social security contributions must be deducted from the amount. The amount payable shall be calculated as a percentage of the annual salary. 95 The annual salary consists of the following remuneration components: 1. Paid out grade salary, that is, normal fixed basic salary. 2. Paid out fixed allowances, for instance functional allowance, specialist allowance, allowance for staggered working hours and allowance for phased withdrawal. 3. Pension contributions from the employer. The annual salary does not include the following remuneration components: 1. Special holiday allowance or holiday pay. 2. Pay for overtime work or additional work. 3. Specially paid-out allowances, for instance for changes to working hours. Pension shall not accrue to the amount paid out. As stated in the provisions, the maximum to be paid out for 1999 and following years amounts to 1.92 per cent of the annual salary including pension contributions. The amount to be paid shall be calculated as follows: The number of outstanding care days multiplied by the disbursement percentage rate (1.92) multiplied by the annual salary divided by five for an employee who works every day. For employees who do not work every day, the division factor shall be the number of care days after rounding off, where relevant, to which the employee is entitled during the calendar year. The amount calculated shall be rounded to two decimals. Example 1 An employee who works every day and who has taken only three care days in 1999. The employee receives an annual salary, including employer’s pension contributions, of DKK 350,000. The employee must receive pay for two care days. The calculation looks as follows: 2 x 1. 92 x 350,000 Example 1 An employee has been granted five care days on 1 January and resigns his/her position him/herself at the end of January. The employee has drawn a number of hours from the hour bank corresponding with one care day. The employer adjusts the balance in the hour bank account with the number of hours corresponding to four care days. Example 2 An employee has been granted five care days on 1 January and resigns his/her position him/herself at the end of January. The employee has drawn a number of hours from the hour bank corresponding with three care days. The employer adjusts the balance in the hour bank account with the number of hours corresponding to two care days. Example 3 An employee has been granted five care days on 1 January and resigns his/her position him/herself at the end of January. The employee has drawn a number of hours from the hour bank corresponding to all five care days. The employer makes no adjustment to the balance in the hour bank account. Example 2 An employee who works four days per week and who has taken two care days in 1999. The employee is entitled to taking four care days in 1999. The employee receives an annual salary, including employer’s pension contributions, of DKK 350,000. The employee must receive pay for two care days. The calculation looks as follows: 2 x 1 92 x 350,000