One in ten Dutch using vacation money to pay bills

One in ten Dutch people do not use their vacation pay to go on vacation but to pay their fixed costs. Young people in particular use their holiday pay to pay their bills, according to price comparison company Pricewise. Of this group, 14 percent use it to pay off arrears or debts, as do 14.3 percent of 40 to 49-year-olds.

In two weeks, millions of Dutch people will receive their vacation pay - a concept introduced half a century ago as an incentive to encourage employees to go on holiday, with the idea that this would keep them fit and motivated for longer.

Pricewise’s research also shows that 10 percent of Netherlands residents can’t afford to go on holiday this year. For households with children up to the age of 12, nearly 17 percent find a vacation too expensive. One in five Dutch people said that they will go on holiday for less time this year because everything has become pricier. Twelve percent of Dutch people said that they never go on holiday.

Despite the fact that energy prices and inflation have fallen, it remains difficult for many people to make ends meet, said Pricewise director Hans de Kok. They, therefore, have to use their holiday pay to pay their bills.

People who earn just below average incomes will receive slightly more net holiday pay this year because the payroll tax has changed. People with an average income or higher will receive an amount that is lower or equal to last year.