Vakantiegeld Tax Treatment in the Netherlands 2026
The 8% statutory allowance
Article 15 of the Wet minimumloon en minimumvakantiebijslag sets the minimum holiday allowance at 8% of the gross salary earned during the accrual period. Almost all collective agreements (cao's) follow this minimum. The allowance accrues on base salary and most fixed payments; variable bonuses may or may not be included depending on your contract.
In a salary offer quoted as a 12-monthly gross, you should check whether it already includes vakantiegeld. If it does, the monthly base is the quoted figure divided by 1.08. If it excludes vakantiegeld, your total annual gross is the quoted figure multiplied by 1.08. Dutch salary calculators typically ask you to enter the all-in annual gross (including the 8%).
How it is taxed: the May paycheck
When your employer pays vakantiegeld in May, your payroll software adds it to the regular monthly salary to compute the loonheffing for that period. Because the combined wage in May is higher, you tip further into your marginal bracket and the withholding increases. There is no special withholding table or reduced rate for vakantiegeld in Dutch payroll law: it is treated as part of the month's gross wage.
Worked example at €40,000 base salary
A base salary of €40,000 per year produces a vakantiegeld of €3,200. The engine receives a gross annual of €43,200 (base plus allowance) for the annual tax calculation. The extra loonheffing attributable to the allowance is €1,344.26, leaving a net payout of roughly €1,855.74.
| Item | Amount |
|---|---|
| Base salary (annual) | €40,000 |
| Vakantiegeld (8%) | €3,200 |
| Total gross annual (incl. vakantiegeld) | €43,200 |
| Loonheffing on base salary alone | €6,285.87 |
| Loonheffing on gross incl. vakantiegeld | €7,630.13 |
| Extra tax attributable to vakantiegeld | €1,344.26 |
| Net vakantiegeld received | €1,855.74 |
Employers who pay monthly or quarterly
Some employers spread vakantiegeld across 12 monthly installments or pay it four times a year. The annual tax outcome is identical: the Belastingdienst looks at the total annual wage when you file (or when your employer's year-end payroll is reconciled). Spreading the payment does not lower the tax, but it does avoid the large single-month deduction that surprises employees who receive the May lump sum.
See your own numbers in the Netherlands salary calculator, which uses the all-in gross including vakantiegeld.
Frequently asked questions
When is vakantiegeld paid?
Most Dutch employers pay the 8% holiday allowance in May, covering the period from 1 June of the previous year to 31 May of the current year. Some employers agree with their employees to pay it quarterly or spread it across 12 monthly salaries instead. If your contract is silent on the schedule, the statutory default applies: one annual payment no later than 1 June.
Is vakantiegeld taxed at a higher rate than regular salary?
There is no special "holiday pay tax rate" in Dutch law. The allowance is taxed at your marginal Box 1 rate in the period it is paid, exactly like any other wage. Because your total wage in May (base salary plus the 8% lump sum) is higher than in other months, the withholding in that month is larger, which is why the net payout looks smaller than the gross figure suggests.
What if I leave my job before May?
You are entitled to accrued vakantiegeld from your start date through your last working day. Your employer must pay the prorated amount as part of your final settlement. It is taxed in the period it is paid, just like regular vakantiegeld.
2026 parameters per Belastingdienst Nieuwsbrief Loonheffingen 2026 (Uitgave 3). Last updated 2026-11-04.