You're extracting more value by working less, freeing your time up to do other things. Those other things may well end up netting you more money over time (working on your own company, for instance.) As well, depending on where you live and work, you may also end up paying a different tax rate on holiday pay over regular pay. If so you may be able to accrue those holidays and eventually receive a lump sum payout that is in effect "cheaper" than regular pay. The difference can be significant, particularly if your income is in the upper brackets.