Vakantiegeld -Holiday allowance in the Netherlands. What do you need to know about it?
The Vakantiegeld, or holiday allowance, is an interesting element of the wage system in the Netherlands. It allows employees to enjoy an extra ‘sum’ paid into their account before the holiday period. Its specifics, the rules for granting it and the way it is calculated may be new to those accustomed to other legal systems. What is worth knowing about this unique form of financial support? Here is the most important information about holiday pay in the Netherlands.
Vakantiegeld – what is it and who is entitled to it?
The Vakantiegeld, or holiday allowance in the Netherlands, is an integral part of the country’s remuneration system. Every employee is entitled to receive it. It is a form of financial support that employers offer to their employees to enable them to have an enjoyable holiday.
The rule of thumb is that holiday pay is paid as a one-off sum in May or June, although it can be paid monthly together with the regular salary if this is specifically stated in the employment contract.
Vakantiegeld is an important element of the Dutch remuneration system that allows employees to enjoy extra holiday money. Both employers and employees should be well acquainted with the rules regarding this allowance to ensure correct payment and understanding of its benefits.
Holiday allowance – the Netherlands also provides it to foreigners employed in the Netherlands! What do you have to do to get it?
The holiday allowance, called Vakantiegeld in the Netherlands, is an important part of the country’s remuneration system, guaranteeing employees extra money for the holiday period. The process for obtaining this allowance is regulated by law and covers both Dutch citizens and foreigners employed in the Netherlands. What do you need to know about it?
- The first step to obtaining holiday pay in the Netherlands is to be employed under an employment contract in the Netherlands. Foreigners employed in the Netherlands, like everyone else, are entitled to receive Vakantiegeld.
- The employment contract and the employer’s rules and regulations should contain information on the holiday pay, such as the accrual period, the method of payment (one-off or monthly) and the specific rules for calculating the allowance. It is worth checking this carefully!
- Carefully analyse the annual statement and ensure that the holiday pay allowance has been calculated and paid correctly. This can be done by analysing the annual pay statement, comparing it with the terms of the employment contract.
- If you have any doubts or problems regarding your holiday allowance, it is worth consulting your HR department for further information and support.
It is worth emphasising that Vakantiegeld is the right of every employee working in the Netherlands, regardless of their nationality. Therefore, foreigners working in the Netherlands have the same right to this allowance as their colleagues from other countries!
How much is holiday pay in the Netherlands, or Vakantiegeld?
Vakantiegeld, or holiday pay in the Netherlands, is 8% of an employee’s gross annual salary for the previous year, including overtime, performance bonuses, any commissions, allowances for working unfavourable hours or pay in lieu of days off. It is therefore an additional sum that employees receive on top of their standard salary.
The holiday allowance is accumulated during the year. The employee and the employer make monthly contributions to this allowance, which is then returned to the employee as a one-off payment in May or, depending on the contract, as part of the monthly salary.
Dutch holiday allowance 2022 and tax rate. What do you need to know?
In the Dutch tax system, tax is settled according to various allowances. These include: the tax-free amount allowance, employee tax credits (general tax credit and employee tax credit). Other exceptions also come into play, which regulate the amount of tax deducted. For this reason, recalculating the amount of Dutch holiday pay an employee will receive on hand may not be a straightforward task for everyone. If you find it difficult to settle your Dutch tax, you can use the services of professional companies. Contact us and we will take care of the exact calculations and give you an idea of how much Dutch holiday tax will be in your case.
Summary: The Vakantiegeld is an important element of the wage system in the Netherlands, providing employees with extra money for holidays. Employers are obliged to inform their employees about the details of this allowance, which includes both how it is calculated and when it is paid. This enables employees to plan
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