How vacation pay is built up
Vacation pay, also known as vacation allowance, is usually built up over the gross salary you earn in a year. In the Netherlands, it is legally stipulated that employees must build up at least 8 percent of their gross salary as vacation pay. This usually happens in the period from June to May.
Every month, you build up a small portion of that vacation pay. Employers often set this amount aside separately and pay it out once a year, usually in May or June. You can often see how much vacation pay you have built up up to that point on your payslip.
If you work part-time or started with an employer later in the year, you will obviously build up less vacation pay because the accumulation period is shorter or because you work fewer hours.
In some sectors or companies, the arrangement may be slightly different. For example, there are employers who pay out vacation pay monthly instead of once a year. The percentage in collective labor agreements (CAOs) can also be higher than the legal 8 percent. Here you can find information from the Dutch government.
How much vacation pay can you expect
The amount of vacation pay you ultimately receive mainly depends on your gross income. Since the percentage is usually 8 percent, you can easily make an estimate.
For example, if you earn a gross salary of 3,000 euros per month, you build up approximately 2,880 euros gross vacation pay per year. If you earn 2,500 euros gross per month, the vacation pay is around 2,400 euros gross.
Keep in mind that vacation pay is taxed. It falls under the so-called special rate for wage tax. As a result, the amount that ultimately appears in your account may be lower than you expect.
The exact tax rate varies by income and situation. Often, the net vacation pay amounts to about half to two-thirds of the gross amount, but this can vary.
Even AOW recipients receive vacation pay
What many people do not know is that people with an AOW benefit also receive vacation pay. This is built up annually just like for employees and paid out in May.
The vacation pay for AOW is automatically built up by the Social Insurance Bank (SVB). Every month, a small amount is reserved that is later paid out as vacation allowance.
The amount of AOW vacation pay is lower than for workers, as it is based on the amount of the AOW benefit. However, it can still be a welcome financial extra for many retirees in the spring.
For people with a full AOW benefit, it usually amounts to several hundred euros per year. Here too, the amount is automatically built up and paid out, so you do not have to arrange anything yourself.
Here you can find the AOW vacation pay amounts for 2026.
What people use their vacation pay for
Although vacation pay was originally intended to pay for a holiday, many people nowadays also use it for other purposes. Think of paying off debts, supplementing savings, or making larger purchases.
In times of higher costs for energy, groceries, and housing, more and more households choose to use vacation pay to increase their financial buffer.
This makes it extra important to know how much you can expect and when it will be paid out. By taking this into account in advance, you can use the money more consciously.
A financial extra in the spring
For many people, vacation pay feels like a financial gift in the spring. But actually, it is just money that you have built up throughout the year. By understanding how the accumulation works and how much you will receive, you will not be caught by surprise.
And perhaps most importantly: even if you are retired and receive AOW, you will receive vacation pay. This is something not everyone knows, but it can be a nice extra in May.
