Holiday pay

Holiday pay is extra money you get every year, on top of your regular wages. It is also known as holiday allowance. 

What holiday pay is and who gets it? 

If you work in the Netherlands, you are entitled to holiday pay. You receive this money on top of your regular salary. Holiday pay is meant to be used when you are on leave, but you can also save it or use it for something else. Everyone who works is entitled to holiday pay, even if you are off sick or on leave. 

How holiday pay is calculated 

In the Netherlands you receive holiday pay that is equal to at least 8% of your gross wages. This is calculated on the basis of your wages for the previous year. Additional payments, such as a profit share or a year-end bonus, are not counted. If you have worked overtime you also receive holiday pay based on the extra hours you worked. You also get holiday pay on your overtime allowance, which is the extra money you received for working overtime. 

When do you receive your holiday pay? 

Holiday pay is often paid in May or June. Your employer must pay it at least once a year. Your payslip shows you how much holiday pay you have accrued. Important! You also pay tax on your holiday pay. The exact date on which it is paid can be found in your contract or in the CAO associated with your work. 

Exceptions and minimum wage 

If you earn the minimum wage you are always entitled to 8% holiday pay. If your collective bargaining agreement states that you do not receive any holiday pay, your wages must at least 108% of the minimum wage. If you earn more than three times the minimum wage, it may be agreed in writing that you receive less holiday pay or even none at all. 

Holiday pay and national holidays 

Holiday pay is not the same as wages you are paid on national holidays. In the Netherlands, you are also paid for official national holidays that fall on days you would normally work, such as King's Day or Christmas Day. Different rules might apply if you are covered by a CAO.