If you work in the Netherlands, there is a good chance that every May your bank account receives a pleasant surprise: your vakantiegeld (holiday allowance), also called vakantiebijslag. This lump-sum payment, typically worth 8% of your gross annual salary, is one of the most distinctive features of the Dutch employment system. For a worker earning EUR 45,000 gross per year, that is a May payment of approximately EUR 3,600 gross.
But vakantiegeld is more than just a nice bonus. It is a legal entitlement, it affects your tax calculations, and it plays an important role in how the Dutch think about annual income. Whether you are new to the Netherlands, negotiating a salary, or simply trying to understand your loonstrook (payslip), this guide explains everything you need to know about holiday allowance in 2026.
What Is Vakantiegeld and Why Does It Exist?
The vakantiegeld system dates back to the 1920s, when Dutch trade unions (vakbonden) negotiated a dedicated payment to ensure workers could afford to take a proper holiday. The idea was simple: if workers received a separate lump sum specifically earmarked for leisure, they would be more likely to actually take time off rather than working through their leave.
The legal basis is now found in the Wet minimumloon en minimumvakantiebijslag (Minimum Wage and Minimum Holiday Allowance Act). Under this law, every employer in the Netherlands is required to pay at least 8% of the employee's gross salary as holiday allowance. This applies to all employees, including part-time workers (deeltijdwerkers), temporary workers (uitzendkrachten), and those on minimum wage (minimumloon).
The 8% figure is a legal minimum. Some employers — particularly in sectors with strong collective labour agreements (CAOs — collectieve arbeidsovereenkomsten) — pay more. Government employees (ambtenaren) typically receive 8%, while some private-sector CAOs provide 8.33% or higher.
When Is Vakantiegeld Paid?
The standard payment date is in May, covering the accrual period from June of the previous year to May of the current year. So the vakantiegeld you receive in May 2026 represents the 8% you accumulated on your salary between June 2025 and May 2026.
However, there are variations:
- Monthly payment: Some employers offer the option to receive vakantiegeld spread across your monthly salary rather than as a lump sum. This is increasingly common, particularly among international employers who are used to simpler monthly payroll structures. If you receive vakantiegeld monthly, your monthly gross salary appears higher, but you will not receive the May lump sum.
- Different payment months: While May is standard, some CAOs specify a different payment month — typically June. Check your employment contract (arbeidsovereenkomst) or your company's CAO for the exact timing.
- Pro-rata on departure: If you leave your job partway through the year, your employer must pay out the accumulated vakantiegeld up to your departure date with your final salary (eindafrekening).
How Is Vakantiegeld Taxed?
Here is where many people get confused — and sometimes disappointed. Vakantiegeld is subject to income tax (inkomstenbelasting) and social security contributions (premies volksverzekeringen) just like your regular salary. But because it is paid as a lump sum, the tax treatment can feel punitive.
The issue is the bijzonder tarief (special rate) for lump-sum payments. When your employer processes the vakantiegeld through payroll, they apply a withholding rate based on your estimated annual income. For many workers, this results in a higher effective withholding rate on the vakantiegeld payment than on their regular monthly salary, because the lump sum pushes the estimated monthly income into a higher tax bracket for that particular month.
For example, if you earn EUR 3,750 gross per month and receive EUR 3,600 in vakantiegeld in May, the payroll system sees a May gross payment of EUR 7,350. It then calculates withholding tax as if this higher amount were your regular monthly income, applying a higher marginal rate to the excess. The result is that a larger percentage of your vakantiegeld is withheld compared to your normal salary.
The good news is that this is a timing issue, not a permanent loss. When you file your annual tax return (aangifte inkomstenbelasting), the Belastingdienst calculates your total tax liability based on your actual annual income. If too much was withheld from your vakantiegeld, you will receive a refund (teruggave). If too little was withheld elsewhere, you might owe a small amount. Either way, the annual total comes out to the same number.
You can see exactly how vakantiegeld affects your annual tax position using our holiday allowance calculator.
Vakantiegeld and Salary Negotiations
When discussing salary in the Netherlands, it is crucial to understand whether a quoted figure includes or excludes vakantiegeld. This is a common source of confusion, particularly for international workers.
Bruto jaarsalaris exclusief vakantiegeld: This is your base annual gross salary before adding the 8% holiday allowance. If someone offers you EUR 50,000 exclusive of vakantiegeld, your total annual gross compensation is EUR 54,000 (EUR 50,000 + 8%).
Bruto jaarsalaris inclusief vakantiegeld: This means the 8% is already included in the quoted figure. An offer of EUR 54,000 inclusive of vakantiegeld means your base salary is EUR 50,000 and the vakantiegeld component is EUR 4,000.
Always ask for clarification during salary negotiations. The difference can be significant — on a EUR 60,000 salary, the vakantiegeld adds EUR 4,800, which could easily be the difference between accepting and declining an offer. Use our salary calculator to convert between inclusive and exclusive figures and see your true take-home pay.
Vakantiegeld for Special Situations
Part-Time Workers
Part-time workers (deeltijders) receive vakantiegeld proportional to their working hours. If you work 24 hours per week in a 40-hour full-time equivalent, you receive 60% of the full-time vakantiegeld amount. The 8% rate applies to your actual part-time gross salary.
Minimum Wage Workers
For workers on the minimum wage (minimumloon), the vakantiegeld is calculated on top of the minimum wage amount. As of 2026, the gross minimum wage for workers aged 21 and over is approximately EUR 2,100 per month. The vakantiegeld adds approximately EUR 168 per month (or EUR 2,016 as a May lump sum). This makes the effective minimum compensation EUR 2,268 per month when vakantiegeld is averaged in.
Uitkering Recipients
People receiving certain government benefits (uitkeringen), including WW (unemployment benefits) and WIA (disability benefits), also receive vakantiegeld. The rate is typically 8% of the gross benefit amount, paid in May. This means benefit recipients also see a May boost, though on a lower base amount than employed workers.
ZZP Workers and Freelancers
Self-employed workers (zzp'ers) do not receive vakantiegeld — there is no employer to pay it. If you are a freelancer, you need to factor this into your rate calculations. An employee earning EUR 50,000 plus 8% vakantiegeld has a total gross compensation of EUR 54,000. To match this as a ZZP'er, you need to ensure your annual revenue covers at least EUR 54,000 equivalent before accounting for business costs, taxes, and insurance. Our freelancer rate calculator helps you calculate the rate you need to charge.
Vakantiegeld and the Bonus Tax Question
Some workers receive both vakantiegeld and a separate performance bonus (prestatiebonus or eindejaarsuitkering). These are different things: vakantiegeld is a legal entitlement based on your gross salary, while bonuses are discretionary payments based on performance or company results.
Both are taxed as employment income, but the withholding method may differ. Bonuses are also subject to the bijzonder tarief, and the combined effect of receiving both vakantiegeld and a bonus in the same period can result in significant withholding. Again, this evens out in the annual tax return. Check the impact with our bonus tax calculator.
How Vakantiegeld Affects Your Annual Income Picture
When comparing Dutch salaries with salaries in other countries, vakantiegeld is an important factor. A Dutch salary of EUR 50,000 exclusive of vakantiegeld is really EUR 54,000 in total annual compensation. In countries without a mandatory holiday allowance — like the UK, Germany, or the US — the quoted salary is typically the full annual amount.
This means that a Dutch offer of EUR 50,000 (excl. vakantiegeld) is roughly equivalent to a EUR 54,000 offer in the UK. When comparing offers across borders, use our salary comparison calculator to get an apples-to-apples comparison of take-home pay.
Vakantiegeld also affects affordability calculations for mortgages. The Nibud and mortgage lenders include vakantiegeld in their income calculations when determining your maximum borrowing capacity (maximale hypotheek). Your total gross annual income including vakantiegeld is the relevant figure for mortgage applications.
Key Takeaways
- Vakantiegeld is a legal entitlement of at least 8% of gross salary, paid as a lump sum in May.
- It is fully taxable but over-withholding in May is corrected in your annual tax return.
- Always clarify whether salary offers include or exclude vakantiegeld — the difference is significant.
- Part-time workers receive proportional vakantiegeld; ZZP workers receive none and must factor this into their rates.
- Vakantiegeld counts toward your income for mortgage affordability calculations.
Use our holiday allowance calculator to see exactly how vakantiegeld affects your take-home pay, and visit the salary calculator for a complete picture of your Dutch income in 2026.