In May and June, many people living in the Netherlands receive holiday pay: a nice extra on top of their salary. Although this perk is called a ‘holiday allowance’, you can decide for yourself how you would best like to spend it. If you're looking for new ideas for what to do with this lump sum, you've come to the right place!
1. Spend it on your holiday
Exactly what holiday pay was originally intended for! In the first half of the 20th century, trade unions fought for (paid) holidays because they felt that employees' lives should consist of more than just work. Later, when holidays were commonplace, the fight for holiday pay was added to the list. The unions believed that you should be able to do something special in your free time, and that you needed money for that. In 1968, holiday pay became a right. Do you spend your holiday pay on your holiday? Good plan, enjoy!
2. Put it towards large purchases or overdue payments
You can also use your holiday allowance for other purposes; almost three out of ten Dutch people do so. This way, this extra sum (8% of your gross annual salary) can come in handy for a large expense. There are also people who use the money to pay off debts. Less fun than a trip to the Côte d'Azur, but it will always feel rewarding to get your financial situation in order.
3. Add it into an investment account
If your holiday pay really is a bonus for you in that you don't need it for urgent expenses or to go on holiday? Then you could consider investing (a part of) your holiday pay. The amount can be a nice starting balance, or a perfect one-off deposit to boost your existing investments. You can also invest your holiday allowance in a tax-efficient way towards your pension. Another option (if you have children) is to deposit part of your holiday pay in a tax-efficient way in an investment account for your child. As a Netherlands resident, you can invest towards your pension and on behalf of your kids via Peaks!
Be aware that investing involves risk and you could lose (part of) your investment.
Rosanne
Copywriter, Peaks
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In May and June, many people living in the Netherlands receive holiday pay: a nice extra on top of their salary. Although this perk is called a ‘holiday allowance’, you can decide for yourself how you would best like to spend it.
