Vacation pay paid out this week; Average worker getting €1,626
Many Dutch workers are getting their vacation pay this week. Employees are legally entitled to a holiday allowance of at least 8 percent of their gross annual salary. Workers with an average income will get around 1,626 euros net this year, the Telegraaf reports based on figures from salary expert ADP.
Minimum wage earners who work a full working week will get 1,201 euros in vacation pay. People earning twice the average income will get 1,626 euros net. Due to changes to the payroll tax, people earning just below average will get more holiday pay this year, while people with an average or higher income will get an equal or lower amount than last year.
People on state pension, unemployment, or disability benefits are also entitled to holiday pay, as are workers who recently left their employers. The vacation pay paid out this month was accrued from 1 June 2023 to 31 May 2024. Those who did not work the entire period will receive proportionally less.
The Netherlands implemented vacation pay in 1969 as an incentive to encourage employees to go on vacation. The idea was that this would keep them fit and motivated for longer.
A recent study by price comparison company Pricewise showed that most people use their vacation pay as intended, to go on vacation. About one in ten use it to pay their bills or pay off debts. Others put it in savings or use it for a big purchase.
