If you work in the Netherlands — or are considering a Dutch job offer — one of the most distinctive aspects of the compensation system is vakantiegeld, the statutory holiday allowance. Unlike most countries where your salary is simply divided into twelve equal monthly payments, the Netherlands mandates that employers pay an additional lump sum equal to at least 8% of your gross annual salary. For many workers, this means a significant bonus landing in their bank account every May.
But how exactly does it work? When is it paid? How is it taxed? And should you negotiate to have it included in your monthly salary instead? This guide answers all of those questions using the 2026 rules.
What Is Vakantiegeld and Who Is Entitled?
Vakantiegeld (literally "holiday money") is a legal entitlement under the Wet minimumloon en minimumvakantiebijslag (Minimum Wage and Minimum Holiday Allowance Act). Every employee in the Netherlands is entitled to a minimum of 8% of their gross salary as holiday allowance. This is separate from your holiday days (vakantiedagen), which are a different legal entitlement.
The 8% is calculated on your gross base salary — which includes your regular monthly pay and, in some cases, overtime and shift allowances depending on your employment contract (arbeidsovereenkomst) and applicable collective labour agreement (CAO). It typically does not include bonuses, commissions, or expense reimbursements.
Nearly all employees are entitled, including:
- Full-time and part-time employees (pro rata for part-time workers)
- Temporary and fixed-term contract workers
- Workers through employment agencies (uitzendbureaus)
- Employees during their probation period (proeftijd)
The main group excluded from vakantiegeld is ZZP'ers (self-employed freelancers), who must factor this into their own rates. Our freelancer rate calculator helps you account for the lack of vakantiegeld when setting your rates.
When Is Vakantiegeld Paid?
By law, vakantiegeld must be paid at least once per year, in June at the latest. In practice, the vast majority of Dutch employers pay it in May. The standard accumulation period runs from June of the previous year to May of the current year, and the payout arrives on or around 31 May.
For someone earning €4,000 gross per month, the May vakantiegeld payout would be approximately €3,840 gross (8% of twelve months' salary). After tax — which is withheld at a special rate (bijzonder tarief) — you might receive between €2,000 and €2,800 net depending on your annual income level.
Some employers offer the option to receive vakantiegeld monthly, spread across twelve payments rather than as a lump sum. This can be helpful for budgeting but means you lose the "bonus" feeling and may not have a clear picture of how much of your salary is base versus holiday allowance.
How Is Vakantiegeld Taxed?
Vakantiegeld is fully taxable as employment income. When it is paid as a lump sum, your employer withholds tax at the special rate (bijzonder tarief), which is based on your expected annual income. This rate is often higher than your regular monthly withholding, which can make the net payout feel disappointing compared to the gross amount.
However, the special rate is designed to approximate your actual annual tax liability. If too much is withheld, you will get the difference back when you file your annual tax return (aangifte inkomstenbelasting). Conversely, if too little is withheld, you may owe additional tax.
Use our salary calculator to see how vakantiegeld is taxed alongside your regular salary, and check the bonus tax calculator to understand how lump-sum payments are treated by the Belastingdienst.
Vakantiegeld and Salary Negotiations
When you receive a Dutch job offer, it is essential to clarify whether the stated salary is inclusive or exclusive of vakantiegeld. A salary quoted as "€60,000 including vakantiegeld" means your base salary is approximately €55,556, with €4,444 paid as vakantiegeld. A salary quoted as "€60,000 excluding vakantiegeld" means your total annual compensation is €64,800.
This distinction matters enormously when comparing offers. An offer of €60,000 exclusive of vakantiegeld is worth nearly €5,000 more per year than the same number inclusive. Always ask for clarification, and use our holiday allowance calculator to see the exact breakdown.
Many CAOs provide for more than the legal minimum of 8%. Some sectors offer 8.33% (one month's salary), and certain senior roles may negotiate a higher percentage or include additional compensation elements.
Vakantiegeld for Specific Situations
Part-time workers: You receive vakantiegeld proportional to your working hours. If you work 24 hours per week in a 40-hour full-time role, you receive 60% of the full-time vakantiegeld amount.
Leaving your job mid-year: When your employment ends, your employer must pay out any accumulated vakantiegeld up to your departure date. This is included in your final settlement (eindafrekening).
Minimum wage workers: Workers earning the minimum wage (minimumloon) are guaranteed the full 8% on top. Their vakantiegeld cannot be absorbed into the monthly salary — it must be paid separately.
Expats on the 30% ruling: If you benefit from the 30% ruling, vakantiegeld is part of your total employment income and the tax-free portion applies to it as well. Check our 30% ruling calculator for the details.
Key Takeaways
- Vakantiegeld is a legal entitlement of at least 8% of gross salary for all employees in the Netherlands.
- It is usually paid as a lump sum in May, covering the previous June to current May period.
- The payout is fully taxable, with tax withheld at the special rate (bijzonder tarief).
- Always clarify whether salary offers include or exclude vakantiegeld — the difference can be nearly €5,000 per year.
- Part-time workers receive proportional vakantiegeld; ZZP'ers receive none and must factor this into their rates.