Vakantiegeld in the Netherlands: What Expats Need to Know
Living and working in the Netherlands? Then you’ve probably heard of vakantiegeld, or holiday allowance. It's an important part of Dutch employment law and ensures that employees can afford to take a vacation. But how does it work and when can you expect to receive it?
What Is Vakantiegeld?
Vakantiegeld is a mandatory holiday allowance paid to employees in the Netherlands. It's designed to help cover expenses related to taking time off. The amount is calculated as a percentage of your gross annual salary—usually 8%.
When Is Vakantiegeld Paid?
Most employers pay vakantiegeld once a year, typically in May or early June. This payment is separate from your regular salary and is visible as a single line item on your payslip.
Who Receives Vakantiegeld?
Almost all employees in the Netherlands—whether full-time, part-time, or on temporary contracts—are entitled to vakantiegeld. Some employers include it in your monthly pay, but most will issue it as a lump sum.
How Is Vakantiegeld Calculated?
- Usually 8% of your gross salary earned over the previous 12 months
- Bonuses and overtime may not be included unless specified in your contract
- Deductions may apply if you've taken unpaid leave or been sick for extended periods
Are There Taxes on Vakantiegeld?
Yes. Vakantiegeld is taxed in the Netherlands—often at a slightly higher rate than your regular income. Don’t be surprised if the net amount is lower than expected after deductions.
What About Freelancers and ZZP’ers?
Freelancers (ZZP’ers) are not automatically entitled to vakantiegeld. However, many freelancers build an 8% holiday bonus into their fees to account for time off.
Planning a Trip?
Since vakantiegeld is paid right before the summer, it’s a perfect opportunity to plan a vacation. It’s also commonly used by residents to pay off expenses or save for major purchases.
Conclusion
Vakantiegeld is a great example of the Dutch work-life balance. Whether you're saving it or spending it on a sunny escape, understanding how it works helps you make the most of this extra income boost.