What Is Holiday Allowance in the Netherlands?
Every employee in the Netherlands is entitled to a holiday allowance (vakantiegeld or vakantiebijslag) of at least 8% of the wage, on top of the salary: Article 15 of the Minimum Wage and Minimum Holiday Allowance Act (WML). It is normally paid once a year in June, over the twelve months up to 31 May, and any allowance still owed is paid out when the employment ends. The 8% is calculated on the wage up to three times the minimum wage; above that, the statutory minimum does not apply, although many contracts and collective agreements still pay 8% or more over the whole salary.
Holiday allowance at a glance
- At least 8% of the wage and of certain benefits received during the employment (Article 15 WML).
- Paid in June over the period up to 31 May, unless another moment has been agreed in writing; at least once a year (Article 17).
- At the end of employment the accrued allowance must be paid out (Article 17(3)).
- Ceiling: the statutory 8% is calculated on the wage up to three times the minimum wage, EUR 7,011 gross per month from 1 July 2026.
- Collective agreements can provide otherwise, but not below a floor of 108% of the minimum wage for wage and allowance together (Article 16).
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How Much Holiday Allowance Is an Employee Entitled To?
At least 8% of the wage paid by the employer, plus 8% of certain benefits the employee receives during the employment: Article 15 of the Minimum Wage Act (1).
The benefits that count are sickness benefit under the Sickness Benefits Act (Ziektewet), pregnancy and maternity benefit and certain other benefits under the Work and Care Act (Wet arbeid en zorg), and unemployment benefit, insofar as the employee is entitled to them during the employment. Payments that the employee receives from third parties for the work, such as tips, count as wage only insofar as they form part of the terms of employment (Article 15(3)).
The Act sets a minimum. An employment contract or a collective agreement can give a higher percentage, and many do. The Act itself does not define which wage components are included beyond "the wage payable by the employer", so whether a particular bonus or allowance counts can depend on the wording of the contract or collective agreement.
Is There a Maximum for Holiday Allowance?
For the statutory minimum, yes. The part of the wage and benefits above three times the minimum wage is disregarded (Article 15(1)). In other words, the law only guarantees 8% over the first three times the minimum wage.
The ceiling is measured per month: the wage is treated as above three times the minimum wage if, over the monthly pay periods in the accrual period, it averages more than three times the monthly minimum wage amount in Article 8(1)(b) of the Act (Article 15(2)). From 1 July 2026 that monthly amount is EUR 2,337.00, so the ceiling is EUR 7,011 gross per month. For weekly pay periods the Act uses 4 1/3 weeks per month. Above the ceiling, the employee has no statutory entitlement, but a contract or collective agreement that promises 8% over the whole salary still applies.
When Is Holiday Allowance Paid in the Netherlands?
In June, over the allowance accrued on wages and benefits that became payable up to and including 31 May of that year: Article 17 of the Minimum Wage Act (1).
A different moment can be agreed in writing or set by a public-law regulation, as long as the allowance is paid at least once per calendar year (Article 17(2)). That is the basis for employers who pay the allowance monthly with the salary: it is allowed, but only if agreed in writing, and the payslip should show it as holiday allowance so that it can be checked against the 8%.
Can a Collective Agreement Change the Holiday Allowance?
Yes, in both directions, but with a floor. A collective agreement or public-law regulation can provide for no holiday allowance, or a lower one (Article 16(1)), but the employee's wage and holiday allowance together must then still be at least 108% of the minimum wage earned over the period (Article 16(2)).
An individual employment contract cannot go below the statutory minimum: any agreement contrary to the Act is void (Article 19). In practice, collective agreements more often give more than 8% than less. Some sectors use holiday funds or vouchers instead of direct payment, which the Act allows if a collective agreement or regulation provides for it and the employee receives at least the statutory amount (Article 18). See collective labour agreements.
What Happens to Holiday Allowance When Employment Ends?
At the end of the employment, the employer must pay the holiday allowance accrued up to that moment: Article 17 of the Minimum Wage Act (3).
This applies however the employment ends: resignation, dismissal, termination by agreement or expiry of a fixed-term contract. It is part of the final settlement, together with payment for untaken holiday. A settlement agreement should state it separately, so that it is clear it has been paid and is not included in a severance amount.
A claim for unpaid holiday allowance becomes time-barred five years after the date on which it should have been paid (Article 20 of the Act). An employee who discovers after leaving that the allowance was calculated too low can therefore still claim the difference for several years back.
How Is Holiday Allowance Calculated in Practice?
The example assumes a statutory 8%, no collective agreement, and a constant salary.
An employee earns EUR 3,500 gross per month from 1 June 2025 to 31 May 2026. The monthly salary is below the ceiling, so the whole salary counts. The holiday allowance is 8% of 12 x EUR 3,500 = EUR 42,000, which is EUR 3,360, paid in June 2026.
If the same employee leaves on 30 September 2026, the allowance accrued from 1 June to 30 September is 8% of 4 x EUR 3,500 = EUR 14,000, which is EUR 1,120, paid with the final settlement.
For the minimum wage and its relation to the holiday allowance, see the minimum wage in the Netherlands. For holiday days rather than holiday pay, see annual leave in the Netherlands.