Part-time, low-income workers getting much less holiday pay this year

Part-time and low-income workers will receive a bit of a shock when they get their holiday pay next month. After already getting a pay cut due to the new tax rules that took effect at the start of this year, part-timers earning 1,000 euros per month will also see their holiday pay drop 30 percent this year, NOS reports from calculations by salary processor ADP.

People who work part-time and earn 1,000 euros gross per month will receive 693 euros net holiday pay in May or June, 213 euros less than last year. Those who earn less than 1,000 euros will receive the same amount as last year. And part-time workers earning between 1,000 and 2,000 euros will receive a few euros less.

According to Dik van Leeuwerden, an expert in legislation and regulations at ADP, this confirms the declining purchasing power for minimum wage earners. “We have seen this unexpected effect of the tax rules earlier in the pay slips, and now it is also reflected in the holiday pay,” he told the broadcaster. “It is the lowest incomes who will be worse off this year.”

Employees with a gross monthly income of 2,000 euros or more, both part-time and full-time workers, will receive more holiday pay this year. The biggest plus is for people who work 36 hours per week and earn the minimum wage, 2,202 euros gross per month. This group’s holiday pay will be 236 euros higher this year than last year.

Those who earn 3,000 euros gross per month will receive 12 euros less holiday pay. People earning 1.5 times the modal income, 5,382 euros gross per month, will get 11 euros less holiday pay. All the higher income groups will receive the same as last year.