Understanding Dutch holiday allowance (vakantiegeld) is key for employees in the Netherlands, including international students and expats. This guide unlocks when and how this essential 8% holiday pay is paid, ensuring you're informed about this vital part of your compensation under Dutch labor law and ready to enjoy your time off.
What is Holiday Allowance (Vakantiegeld)?
In the Netherlands, holiday Allowance (or “vakantiegeld”) is a welcome income boost that employees receive once a year, usually in May. This is not simply extra money; it is a legal right! The goal is to ensure that everyone has the opportunity to enjoy their vacation without financial constraints.
Who is Eligible for Holiday Pay in the Netherlands?
Almost everyone who works in the Netherlands, including employed overseas students, is eligible to holiday pay. It doesn’t matter if you work part-time while studying or if you have a temporary job; if you have a contract, you’re likely covered.
How Much is Holiday Pay (8% Rule)?
The typical holiday pay rate is at least 8% of your total annual wage. So, if you earn €20,000 per year from a part-time work or internship, your holiday compensation will be approximately €1,600. Not so awful, right?
