The holiday allowance should appear on your payslip in May. ABU CLA (Collective Labour Agreement for Temporary Workers in the Netherlands) has amended their vacation allowance legislation, Dutch Government website on Holiday Allowance, Summary of EU Working Time Directive 2003 laws on working time, Health Insurance in the Netherlands [Expat Edition], How to Know if They’re a Good Company Culture Fit, 30% Tax Ruling in the Netherlands: What You Need to Know in 2020, 3 Reasons to Use Both In-House Recruiters and a Recruitment Agency, What to Do If You’ve Just Been Laid off in the Netherlands, Job Searching and Mental Health: How to Take Care of Your Wellbeing, How to Solve Common Technical Issues From Home, a minimum daily rest period of 11 consecutive hours in every 24, a rest break in any working day longer than 6 hours, an uninterrupted 24-hour rest period every 7 days, in addition to the daily 11 hours, a maximum average working week of 48 hours, including overtime, over 7 days, normal night work should be no more than 8 hours on average in any 24 hours. However, it is common practice for employers in the Netherlands to offer 25 days of paid leave, on top of 10 public holidays in the Netherlands. Holiday leave: Full-time employees in the Netherlands are legally entitled to a minimum of 20 days (four weeks) of paid holiday leave per year. Severance payments do not fall under the 30% ruling definition of ‘regular employment income’ and therefore do not qualify for the 30% tax free option. Holiday allowance. All temporary workers have an increase in their vacation allowance from 8% to 8.33%. Part-time employees are also entitled to … We have also flagged this change in legislation to our clients. It doesn’t have to be a vacation per se. This 8% “bonus” is not a bonus at all. The lowest income tax tariff in the Netherlands in 2019 is 36.65%. With over 30 years of recruitments and HR experience in the Netherlands, we are a diverse team of specialists who will help you find the right match, whether you are an employer or a candidate. Specific exemptions are applicable to a number of allowances, benefits in kind and provisions. In the Netherlands, your holiday payment is paid out separately. You pay wage tax in the form of a final levy of 80% over the amount that exceeds the discretionary margin. Blue Lynx offers help and advice to international job seekers and contractors (temporary workers) in the Netherlands. 8.33% vacation allowance, accrued per month € 249.90. This is referred to as ‘Vakantiegeld’ in Dutch, roughly translated as ‘Holiday/Vacation Allowance’. User account menu. Recruitment, Contracting & Executive Search Most importantly, your vacation days have an expiration date. If your employee earns over three times the legal minimum wage, you do not have to pay holiday allowance. Although the most common practice is to get the holiday allowance as a one-time payment. Use our Dutch tax calculator to find out how much income tax you pay in the Netherlands. What is the Dutch Holiday Allowance? Many employees receive a fixed (travel) expense allowance from their employer every month. The holiday payment amounts to 8% of your annual income. In the Netherlands employees are entitled to at least 2 holidays per month. For example there is a tax reduction available when you live and work in the Netherlands or when you are conducting a study/training. There are special regulations regarding pension premiums, but the bonus, holiday allowance, benefit package and company car fall under the ruling. Some CAOs can even stipulate terms which may appear to overrule Dutch law or the EU directive, but this is often due to the unique nature of some jobs (for example, the amount of rest a pilot is entitled to). For example, holiday pay which you pay after the end of the employment is also considered wage from present employment. This helps to pay for the summer holidays. 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