Vakantiegeld: The Dutch Holiday Allowance, Explained
Vakantiegeld is a Dutch employment right most newcomers have never heard of until it shows up as an extra payment in May — here's what it is, how much you're entitled to, and how it's taxed.
What vakantiegeld is
Vakantiegeld (literally "holiday money") is a mandatory holiday allowance under Dutch employment law: at least 8% of your gross annual salary, paid out separately from your regular monthly pay — almost always in May or June, though some employers pay it monthly alongside salary instead (check your contract).
Who's entitled to it
- Applies to nearly all employees under Dutch employment contracts, full-time or part-time (pro-rated to hours worked)
- Freelancers and self-employed workers (zzp'ers) are not entitled to it, since it's an employment-law protection, not a general Dutch benefit
- Some employment contracts state a total salary figure that already includes vakantiegeld — always check whether your quoted salary is "inclusief" or "exclusief" vakantiegeld
How it's taxed
Vakantiegeld counts as taxable income, but Dutch payroll typically withholds tax on it at a higher "bijzonder tarief" (special rate) at the moment of payment, since it's an irregular one-off amount. This isn't necessarily your final tax rate — it's reconciled against your actual annual income and bracket when you file your tax return, which can result in a refund.
Changing jobs mid-year
If you leave a job partway through the year, your employer pays out the vakantiegeld you've accrued up to your last day, pro-rated for the months actually worked — usually as a line item on your final payslip. Your new employer then starts accruing your vakantiegeld entitlement fresh from your start date, building back up to the next payout in May or June.
Questions people actually ask
What is vakantiegeld?
Vakantiegeld (holiday allowance) is a mandatory Dutch payment of at least 8% of your annual gross salary, paid out once a year — typically in May or June. It is separate from your regular monthly salary.
Is vakantiegeld taxed?
Yes — vakantiegeld is taxed as income, though it's often withheld at a higher special-rate percentage at the time of payment (since it's treated as an irregular payment) and reconciled against your actual tax bracket in your annual tax return, which can mean a refund if you were over-withheld.
What happens to vakantiegeld if I change jobs mid-year?
Your employer pays out the vakantiegeld you've accrued up to your last working day, pro-rated for the months worked, usually included in your final payslip. Your new employer then starts accruing it fresh from your start date.
See your Dutch net pay with and without vakantiegeld factored in, side by side.
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