Holiday allowance in the Netherlands
If you start working in the Netherlands you will notice that your contract mentions a holiday allowance. But what is that, a holiday allowance, referred to as ‘Vakantiegeld’ in Dutch?
Holiday allowance
Holiday allowance is an allowance that employees in the Netherlands receive from their employer to cover extra costs for holidays. Outside the Netherlands, holiday allowance is an unknown concept. Of course, it is not mandatory to spend the allowance on a holiday, but that was originally the intention, since the Dutch government wants employees to be able to go on holiday.
How high is the allowance?
The holiday allowance is at least 8 percent of the gross salary you earned during the past year (for example, from May to May) and is paid on top of it. In principle the allowance is paid in a lump sum in May or June. The holiday allowance may only be paid monthly together with your regular salary if this is explicitly stated in your employment contract. The allowance may not be hidden in your regular salary. It is stipulated by law that the holiday allowance must be shown on your pay slip separately.
The allowance is also calculated on extra hours worked (overtime). On the other hand, holiday allowance is not calculated over expenses, bonuses, or profit distribution. Besides receiving the holiday allowance you will continue to be paid during your holiday. And if you are ill, the accrual of your holiday allowance continues.
You have not worked a full year
If your contract starts during the year then the holiday allowance is calculated pro rata. If your job ends, the accumulated amount is paid out immediately with the last salary payment.
Taxation
When the holiday allowance is paid, taxes are immediately withheld by the employer and the right tax credits are calculated. And for those who benefit from the 30% ruling, this also applies to the holiday allowance.
Nice benefit
Holiday allowance is a nice benefit for the employee. Employers have to make sure that the correct amount is paid. Expatax can assist employers and take care of the payroll administration. Enjoy your holiday!
Good morning,
My name is Gerson Maia and I worked from 7th of February 2022 to 28th February 2023 for a temporary agency until I got contract with the employer from March.
By the end of it I have over 100h on unpaid holiday and until now I still did not get paid for any of it and I would like to know which is the law for this case. Should I get my unused holiday paid straight away with my last pay day or how long do I have to wait until they pay me my unused holiday??
I appreciate your time and help and you wish a great day.
Kind regards,
Gerson Maia
My understanding is that any outstanding payments at the end of a contract have to be paid within a month of the last workday. But maybe your contract with the agency mentions another term?
I wanted to know that how will calculate 8% allowance when someone getting 30% ruling benefit? like if some getting 100 Euro, after 30% deduct , taxable income 70% , so 8% allowance would be count on 70% (taxable income) ? or 100% (on 100 Euro) ? if its on full gross (on 100 Euro) can you give me authentic link to describe to my employer
Thanks
The holiday allowance will be calculated on the taxable income, so the 70%, but the 30% ruling will then be calculated on the holiday allowance too. You will still receive the full holiday allowance, but net it will be higher due to the 30% ruling.
Hello, I would like to ask a question about Holiday Allowance. Does it count as a taxable income? Because, I am currently trying to achieve the minimum taxable wage requirement for %30 rule. How can we calculate our taxable income? Should we add holiday allowance like (yearly gross salary) x 0.7 + (yearly gross salary) x 0.08 x 0.7?