Part-time workers, minimum wage earners getting more vacation pay this year

Part-time workers and people earning minimum wage will almost all receive more holiday pay this year than they did last year, NOS reports based on a calculation by payroll service provider ADP. Some other income groups will see a slight decrease. Most employees receive their holiday pay in May or June.

Part-time workers with a gross monthly salary of €1,000 will receive €221 more net holiday pay than last year. Holiday pay for part-time workers earning €2,250 gross will increase by €132. That is a significant difference compared to last year, when part-time workers’ holiday pay was much lower than the year before.

Minimum wage earners with a 40-hour work week will receive an extra €60 net holiday pay this year. For a 36-hour work week, holiday pay increases by €1.

For people earning over €2,500 gross per month, holiday pay will decrease slightly in most cases. The decrease will amount to about €5 to €8, according to ADP.

The differences in holiday pay are due to the Cabinet’s choices, Karin Stam of ADP told NOS. “This has to do, among other things, with the income tax brackets. These are tweaked every year. Just like the tax credit. All these factors have their own rules, and they all influence each other.”

In the new tax plan, the Cabinet tried to accommodate lower-income groups. So these groups are benefiting this year, while higher-income groups will not receive extra holiday pay.

Stam stressed that higher-income groups aren’t worse off this year, overall. “In terms of net wages, they will all be better off compared to last year, regardless of which income bracket they fall into.”