Netherlands Holiday Allowance (Vakantiegeld)
Complete guide to Dutch holiday allowance (vakantiegeld). Learn how the 8% bonus is calculated, when it's paid, and your rights as an employee.
What is Vakantiegeld?
Vakantiegeld (holiday allowance) is an additional payment equal to 8% of your gross annual salary. It's a legal right for most Dutch workers, paid separately from your regular salary.
When is it Paid?
Holiday allowance is typically paid in May. Some employers pay it monthly as part of regular salary, though annual payment is more common.
Calculation
Calculate vakantiegeld as 8% of your gross salary earned between June 1 and May 31. For €50,000 gross annual salary: €4,000 holiday allowance.
Tax Implications
Vakantiegeld is taxable income. Because it's often paid as a lump sum, it may be taxed at a higher rate initially, though this is corrected in your annual tax return.