One of the unique aspects of working in the Netherlands is the vakantiegeld (holiday allowance). By law, every employee is entitled to a minimum of 8% of their gross annual salary as an additional payment, typically received as a lump sum in May or June. For many Dutch workers, this feels like a bonus — but it is actually a legal entitlement.
What Is Vakantiegeld?
Vakantiegeld is a statutory holiday allowance mandated by the Wet minimumloon en minimumvakantiebijslag (Minimum Wage and Minimum Holiday Allowance Act). It was originally designed to ensure workers could afford to take a proper holiday. Today, it remains a fundamental part of Dutch employment law.
The minimum vakantiegeld is 8% of your gross salary. Some employers offer more than 8%, depending on the applicable CAO (collective labour agreement) or individual employment contract.
How Is It Calculated?
The calculation is straightforward: 8% of your gross salary earned during the reference period. The standard reference period runs from June 1 to May 31 of the following year. For example:
- Gross annual salary: 50,000 euros
- Vakantiegeld: 50,000 x 8% = 4,000 euros (gross)
- Monthly accrual: 4,000 / 12 = approximately 333 euros per month
If you started working partway through the year, your vakantiegeld is calculated proportionally based on the months you worked during the reference period.
What Counts as Gross Salary?
Vakantiegeld is calculated on your base gross salary. It typically does not include bonuses, overtime payments, or expense reimbursements. However, certain regular allowances may be included depending on your CAO.
When Is It Paid?
Most employers pay vakantiegeld as a lump sum in May, covering the period from June of the previous year to May of the current year. Some employers allow you to receive it monthly instead of as a lump sum — this can be arranged in your employment contract.
Receiving it monthly means a slightly higher monthly paycheck, but you miss out on the lump sum payment that many Dutch people use for holidays, home improvements, or saving.
How Is Vakantiegeld Taxed?
Vakantiegeld is taxed as regular income. When paid as a lump sum, your employer applies the bijzonder tarief (special withholding rate), which is based on your expected annual income. This may result in a higher tax percentage on the lump sum than on your regular monthly salary, but the total annual tax remains the same.
If you receive vakantiegeld monthly, it is simply included in your regular loonheffing calculation.
What About Part-Time Workers?
Part-time employees receive vakantiegeld proportional to their working hours. If you work 24 hours per week instead of 40 hours, you receive 60% of the full-time vakantiegeld amount.
When You Leave Your Job
If you leave your employer before the annual payment date, you are entitled to any accrued vakantiegeld up to your last working day. This must be included in your final salary payment (eindafrekening).
Use our salary calculator to see your gross salary including vakantiegeld.