Workers are once again spending their holiday allowance
Economists expect more people to spend their upcoming holiday allowance than in the past few years, especially as the opportunity to travel opens up again. At the same time, holiday money will probably be used more often to pay for everyday necessities amid the inflation, AD reports.
A total of 15 billion euros in holiday allowance will be paid out next week. But how people use it will likely depend on what income bracket they are in, said economist Piet Rietman of ABN AMRO.
"People are looking for ways to absorb the declining purchasing power, which could be holiday pay,'' Rietman said. "A differentiation between income groups can be expected –– low incomes may go on holiday less often, but high incomes are more likely to go on holiday now that there are no more travel restrictions."
The National Institute for Budget Information (Nibud) also predicts that more people will use their holiday allowance this year to pay debts or for everyday expenses than in previous years. "We see that many people who have higher expenses can say to people who are behind on their bills: 'Wait a minute, in May I will get my holiday pay and then I can pay that bill,''' Nibud spokesperson Gabriella Bettonville told AD.
More people might also use the money to make their homes more sustainable in the face of rising energy bills. However, there will also be many other opportunities to spend on last-minute offers and sales in the coming weeks.
"What will the consumer do with the holiday pay, now that it is clear that the energy bill will increase by 100 euros?" Eus Peters, director of the Dutch Retail Council. "Maybe it will be solar panels instead of buying in the shops."