Depending on the sector's collective agreement, public holidays in the Netherlands can be working days, as there's no statutory obligation for employers to entitle their employees to a day off.
However, many companies in the Netherlands offer more than the minimum number of vacation days for employees to take days off from work. Apart from several paid holidays, employees in the Netherlands are also entitled to a holiday allowance – not a common mandatory benefit in Europe.
In this blog, we will explain the most important aspects of the Dutch holiday allowance and paid holidays in the Netherlands.
Understanding Holiday Allowance in the Netherlands
Employees in the Netherlands, both full-time and part-time, are entitled to the holiday allowance. Holiday allowance – "Vakantiegeld" in Dutch – is a mandatory payment by employers in the Netherlands, an additional amount of money on top of the employee's gross salary.
As of January 2020, the standard rate is a minimum of 8% of an employee's last year gross salary. Only if an employee earns over three times the legal minimum wage, the employer does not have to pay holiday allowance. This, however, has to be stated in the contract.
In the Netherlands, employers can decide when to pay the holiday allowance to the employee. It is common to do it in one of the following ways:
In 1 installment: The employer pays the holiday allowance in one installment (8% x annual salary). This is usually done in May or June. In this case, the employee will receive their monthly salary for the specific month and the holiday allowance (monthly salary * 96%).
In 12 installments: The employer pays the 8% on a monthly basis on top of the salary.
Calculations examples
Monthly salary
$ 5.000
Monthly holiday allowance (8%)
$ 400
Annual salary
$ 60.000
Annual holiday allowance (8%)
$ 4.800
Paycheck example if holiday allowance is paid on a monthly basis (12 installments)
[$ 5.000 + $ 400]- = $ 5.400,- monthly paycheck
Paycheck example if an employee receives the holiday allowance in one installment in June:
[$ 5.000 + $ 4.800]- = $ 9.800,- paycheck in June
Taxation and deductions related to holiday allowance
Because it is considered a special reward, holiday allowance in the Netherlands may be heavily taxed compared to a regular salary. Dutch employees pay taxes on the holiday allowance in the Netherlands, and the amount depends on a couple of factors, such as total gross salary.
Paid Holidays in the Netherlands
Each year, an employee in the Netherlands is entitled to a statutory number of days of paid leave. For employers, this means they are obligated to pay employees' wages during the vacation days.
Full-time employees are entitled by Dutch law to a minimum of 20 days (four weeks) of paid leave per year. This is based on a calculation: four times the number of hours worked per week.
Part-time employees are also entitled to four times the number of hours worked per week. A part-time employee who works 24 hours (3 days) is legally entitled to have 12 days of paid leave per year.
Number of vacation days in the Netherlands
Hours worked per week
Annual paid holiday leave in the Netherlands
40 hours
20 days (160 hours)
36 hours
18 days (144 hours)
32 hours
16 days (128 hours)
28 hours
14 days (112 hours)
25 hours
12.5 days (100 hours)
24 hours
12 days (96 hours)
Regulations and entitlements for paid holidays
Many Dutch companies offer more than the minimum number of paid holidays. For many employers, it is common to give employees between 25 and 30 days of paid vacation leave. Some employers also offer the possibility to "buy" extra days off via salary sacrifice. Holiday leave is also accumulated during maternity leave and (temporary) sick leave.
Please note that holiday leave is separate from Dutch national (bank) holidays, which are also paid if they fall on a weekday.
Conclusion
As mentioned above, employees in the Netherlands are entitled to paid holidays with a minimum of 20 vacation days for full-time employees or four times the number of working hours per week for part-time employees. In addition to that, they are also provided with a holiday allowance, usually on an annual level, at a standard rate of a minimum of 8% of the employee's gross salary last year.
All of these costs for the employer need to be considered when hiring in the Netherlands, along with the country's specific regulations and employee entitlements.
Interested in learning more about hiring in the Netherlands? Explore , or reach out to us to find out how EuroDev HR Outsourcing services can help you.
Disclaimer:While we strive to provide accurate and timely information, please note that HR policies and regulations can change frequently. It is recommended that you seek guidance from our HR consultants to ensure that the data presented here is current and accurate.
The Dutch Holiday allowance (in Dutch: “vakantiegeld”) is worth 8% of the gross annual salary and is normally paid out every May. Right in time to finance your summer holiday! The holiday allowance is an additional sum paid on top of your gross salary.
The statutory minimum holiday entitlement of 20 days is four times the agreed working time per week for each year of employment. These statutory days are in addition to public holidays of which there are normally seven each year. In practice, most employees are entitled to 25 days.
How is the Dutch holiday allowance calculated? Employees in the Netherlands are required by law to receive at least 8% of their salary as holiday allowance. This also applies to employees with a zero-hours contract. The minimum rate for temporary workers is 8.33%.
There are 7 public holidays recognised in The Netherlands, these include national holidays like Good Friday and Easter Monday plus two public holidays celebrated solely in The Netherlands. There are also additional regional public holidays observed in specific states in the Netherlands.
There are four different types of allowances in the Netherlands: huurtoeslag, known as the rent benefit or housing allowance; zorgtoeslag, the healthcare allowance; kindgebonden budget, which is the child benefit; and kinderopvangtoeslag, the child care benefit.
The average monthly salary in the Netherlands can vary significantly depending on factors such as occupation, experience, education, and location within the country. According to recent data, the gross average monthly salary is typically around 3,000 to 3,500 euros.
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In the Netherlands, employees are entitled to paid sick leave from the first day of illness for up to two years if the illness prevents them from working. During this period, employers are responsible for covering the employee's salary.
Iran has the most public holidays (27) in the world and the most paid vacation days overall (53). We found 23 countries with 30 days of paid leave per year, the highest number of paid leave available.
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Holiday pay is a form of income paid in addition to the regular salary. Therefore, it is subject to the highest applicable tax rate for the employee. So, if an employee has a taxable income of €75,000, their holiday pay falls into the high rate of 49.50%.
The biggest celebration of the year takes place every year on April 27. This is ´King´s Day´ in Holland, and throughout the country festivities take place, with everything and everyone decked out in the colour orange – the colour of the royal family, the 'House of Orange'.
Parents may annually gift their children €6,035 (2023) per child tax-free. Between the ages of 18 and 40, parents may use the increased exemption once per child, with an amount of €28,947 (2023). For the payment of an expensive study or education, the exemption is €60,298 (2023).
The number 13 is a lucky number when it comes to employee benefits in the Netherlands. It's basically an end-of-year bonus set at a month's gross wage and paid at the end of the year. The 13th month's salary shouldn't be confused with the holiday allowance, which is mandatory according to Dutch Law.
How do you calculate the net holiday pay? For income up to €73,031, the rate is 36.93%.For income above that amount, the top rate is 49.50%. Holiday pay is a form of income paid in addition to the regular salary.
For an employee entitled to 30 days' annual paid holidays by virtue of their contract of employment, this is equal to 2 and ½ days (30 days divided by 12) paid holidays per month. 8% of the hours an employee works in a leave year (but subject to a maximum of 4 weeks)
Introduction: My name is Francesca Jacobs Ret, I am a innocent, super, beautiful, charming, lucky, gentle, clever person who loves writing and wants to share my knowledge and understanding with you.
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