Holiday allowance (vakantiegeld)
is a statutory extra payment for holidays — in the Netherlands, a mandatory 8% of annual gross salary (vakantiegeld), accrued monthly and usually paid each May or June. Belgium and Austria run comparable schemes. It is deferred wages, not a discretionary perk.
How vakantiegeld works
Dutch employers accrue 8% on gross wages from June to May and pay the accumulated allowance out, typically with May or June payroll; contracts can fold it into an all-in monthly rate only within legal limits and with clear wording. It is taxable, though withholding uses the special-rate table for one-off payments.
Leavers receive the accrued balance in their final settlement. For EOR and payrolled employees in the Netherlands the allowance applies exactly as for direct staff — offers quoted ‘including holiday allowance’ versus ‘plus’ differ by 8%, so state which.
Related terms: 13th-month salary, employer costs
FAQ
Is holiday allowance the same as paid holiday?
No — the allowance is money on top of salary; paid holiday is time off at normal pay. The Netherlands has both: statutory leave days and the 8% vakantiegeld. Confusing them understates Dutch employment cost.
Can the 8% be paid monthly instead?
Yes, as part of an explicit all-in arrangement — common for short contracts and some payrolling setups — provided the payslip shows the components separately and the practice meets legal conditions. Silent ‘inclusion’ without wording fails, and the employer owes the 8% again.