What is vakantiegeld?
Employees in the Netherlands are entitled by law to a holiday allowance (vakantiegeld or vakantietoeslag) of at least 8% of their gross salary. Despite the name, you don’t need to take a holiday to receive it: it is simply an extra payment on top of your regular salary. The tradition dates back to the post-war years, when the allowance was meant to make a summer holiday affordable.
The allowance builds up every month over an accrual year that usually runs from 1 June to 31 May. Most employers pay it in one go in May or June. Some pay it monthly instead, and some contracts or collective labour agreements (CAOs) offer more than 8%. Senior or highly paid employees sometimes have an “all-in” salary in which the allowance is already included; check your contract.
The calculation
holiday allowance per month accrued = gross monthly salary × 8%
annual holiday allowance = monthly accrual × number of months worked
The basis is your gross salary including fixed components such as shift allowances, but usually excluding overtime, bonuses and expense reimbursements. Your contract or CAO defines exactly what counts.
Example 1: you earn €3,200 gross a month and work the full year. Your accrual is €256 a month and your holiday allowance in May is 12 × €256 = €3,072 gross.
Example 2: you started on 1 September. From September to May you worked 9 months, so you receive 9 × €256 = €2,304 in May.
Example 3: you leave your job on 31 December. Your final payslip includes the allowance accrued since 1 June: 7 months × €256 = €1,792.
Monthly salary and holiday allowance
| Gross monthly salary | Holiday allowance per year (8%) |
|---|---|
| €2,200 | €2,112 |
| €2,800 | €2,688 |
| €3,500 | €3,360 |
| €4,500 | €4,320 |
| €6,000 | €5,760 |
How is it taxed?
Holiday allowance is taxable income. Because it is a one-off payment, employers use the special-payments table (tabel bijzondere beloningen), which often withholds a higher percentage than on your regular salary. That is why your net holiday allowance can feel disappointingly low. The difference is not a real extra tax: when your total annual income is settled, the tax over the year is the same as if the allowance had been spread over twelve months. Our Dutch salary calculator shows your estimated net holiday allowance as part of your annual net income.
Part-time work, sick leave and parental leave
Part-time employees receive 8% of their actual (part-time) salary. During sick leave you continue to accrue holiday allowance on the salary that is paid. During unpaid leave no allowance builds up. If your salary changes during the year, the allowance is calculated on the salary you earned in each month, so the calculator gives a good approximation if you enter your average monthly salary.
Tips
- Comparing job offers? Ask whether the stated salary includes holiday allowance. €4,000 a month excluding 8% is worth €51,840 a year; including it, only €48,000.
- Budget for the tax. Plan for a net amount that is noticeably lower than the gross figure.
- Converting to an hourly rate? Use the hourly wage calculator with your monthly salary and contractual hours.
Frequently asked questions
How much holiday allowance do I get in the Netherlands?
At least 8% of your gross annual salary. On a salary of €3,000 a month that is €2,880 a year before tax.
When is holiday allowance paid?
Usually in May or June, covering the period from 1 June of the previous year to 31 May. Some employers pay it monthly.
Do I get holiday allowance if I just started?
Yes, but only for the months you worked during the accrual year. If you started in January, you receive 5 months’ worth in May.
Is vakantiegeld paid when I leave my job?
Yes. Any accrued but unpaid allowance is included in your final settlement, together with unused holiday days.
Why is the net amount so low?
Employers withhold tax using the special-payments rate, which can be high. Your total tax over the year is reconciled in your annual tax return if needed.
Last reviewed: 2026-10-06. Results are estimates for information only.