The Netherlands' holiday allowance (vakantiegeld) in 2026
Dutch employers must pay a holiday allowance of at least 8% of gross salary. How the vakantiegeld works and is taxed in 2026.
A mandatory 8% allowance
Rather than a 13th month, the Netherlands mandates a holiday allowance (vakantiegeld) of at least 8% of your gross annual salary. Most employers pay it as a single sum in May, though other timing or instalments require the employee's written consent.
How it is taxed
- The allowance is part of gross wages, taxed under Box 1 on the progressive scale up to 49.5%.
- Employers often withhold at the annualised bijzonder tarief, but the final liability is ordinary progressive tax.
- National-insurance contributions are withheld on it as part of gross pay.
Check your own numbers
Use the 13th and 14th month calculator for the Netherlands to value the allowance after tax, or the Netherlands salary calculator for your monthly net.
Try the calculators
October 2026