Everything you need to know about holiday allowance in the Netherlands

If you're an expat living and working in the Netherlands, then it's likely that you receive holiday allowance. But what exactly is holiday pay, how much holiday pay are you actually entitled to? Read all this, including ideas on what to spend it on, in the article below.

What is holiday allowance and how much should I receive?

Holiday pay is an amount that you receive from your employer on top of your salary, intended as a bonus to spend on a holiday. A holiday is a great way to spend it, but you can do with it what you will. also do something else with it – you can even invest it! What you do with the money is up to you.

Holiday pay is not just a gift from your employer, you are entitled to it. And in principle you should receive at least 8% of your gross annual salary from the previous year. This also applies if you work flexible hours, for example as a temporary or on-call worker. Remember that you pay tax on holiday pay because it is considered income.

Holiday pay: gross and net

Want to know how much holiday pay you will actually receive after taxes? The Dutch National Institute for Family Finance Information (Nibud) has a set of tables on this page that you can use to estimate for yourself. You can read more information in English on this official page from the Dutch government. Please note: Peaks is not responsible for the content of these pages. So double-check that they indeed have been updated!

When is holiday allowance paid out?

Holiday pay is often paid out in May or June, at the same time as your salary. Some employers spread it out over the year and pay a little each month. Your payslip shows how much holiday pay you accrue each month and how much you will receive in the end.

Do you also receive holiday allowance if you receive a state pension or other benefits?

Yes, you are entitled to holiday allowance even if you receive benefits. The exact amount you receive depends on the type of benefit. If you receive social assistance, for example, the municipality will save 5% of your benefit for you as holiday pay. A state pension comes with a fixed amount of holiday pay. If you receive a disability benefit, your holiday pay is 8% of your gross benefit.

In short, holiday pay is a nice extra on top of your income, intended to help you cover the costs of a well-deserved holiday. Many people do choose to use this lump sum in different ways however, like saving or investing it for the future or investing in a coveted item. How you spend (or don't spend) it is completely up to you!