[thejdude]

Yes, that's the part you SEE. But I'm pretty sure your boss doesn't pay your "paid vacation" out of his own money - it's part of the calculation of the total package they have to pay you (including your desk, the money they might have to pay to headhunters to acquire you, ...), mandatory state "insurances" or fees.

They only pay the value of the package - you can calculate your hourly rate on total yearly pay / yearly hours worked, or are free to imagine you get paid total yearly pay / total hours of the year, and then boom, you're also paid for the vacations, for weekends, for the nights and so on. But in fact you're only paid because your boss knows what value you provide and how many hours you'll be there that year.