You pack your bags, sign your contract to work in the Netherlands and in your head you do the maths using the system you know. In Spain we are used to the holy trinity of pay: base salary, summer bonus and Christmas bonus (the famous 14 payments a year).
However, when you receive your first Dutch contract, you see that the annual salary is split into 12 monthly payments (or weekly payments if you work through an agency). The first reaction is suspicion: 'Where are my extra payments? Are they cheating me?'
No. The Dutch labour market works differently, but it's no less rewarding. Instead of splitting your salary into 14 payments, the Dutch system has Vakantiegeld (holiday pay): an accumulated 'super payment' released, like breaking open a piggy bank, just before summer.
Many blogs and forums will sell you the illusion that you will get rich in May with this payment. We prefer to speak plainly. In this definitive guide for 2026 we take out the calculator, break down your payslip and explain exactly how Vakantiegeld works, how employment agencies manage it and the painful toll the tax office ( Belastingdienst ) takes before that money reaches your bank account.
1. What exactly is Vakantiegeld and how is it calculated?
Vakantiegeld is not a productivity bonus or a gift from the company for being a good employee. It is an employment right that has been protected by Dutch law for decades. Its original purpose was to make sure all workers had enough money to go on holiday at least once a year, encouraging rest and boosting the tourism economy.
By law, Vakantiegeld is equivalent to 8% of your annual gross salary.
Put simply: for every euro you earn, the company must set aside an extra 8% in a 'virtual piggy bank' in your name.
The calculation in a real scenario
Let's do the numbers with a standard example for a logistics or production worker in 2026.
Imagine your gross monthly salary is €2,300.
8% of that €2,300 is €184 gross per month .
Every month you work, you build up that €184 for your holiday pay.
If you work from January to December (12 months), you will build up a total of €2,208 gross in your Vakantiegeld piggy bank.
Note: this 8% is calculated on your base salary. Depending on your collective agreement (CAO), certain bonuses such as overtime ( overwerk ) or the night shift allowance ( ploegentoeslag ) may not count towards the calculation of your holiday pay. It is vital to check the conditions of your contract to avoid surprises.
2. When is it paid? The difference between traditional companies and agencies
Knowing how much you will receive is important, but knowing when you can use that money to buy your plane tickets to Spain is essential. This is where the system splits into two big blocks.
The traditional model: May, the happy month
If you have a direct, permanent contract with a Dutch company (a bank, a large retailer, a tech company), the law states that the Vakantiegeld built up from June of the previous year to May of the current year is paid in the May payslip . In other words, at the end of May you receive your normal monthly salary plus the big boost of your accumulated 8%.
The agency model (Uitzendbureau): the 'Reserveringen'
90% of foreigners who come to work in logistics, agriculture or industry do so through a temporary employment agency. The agencies' collective agreement (the ABU or NBBU CAO) allows more flexibility, as it assumes flexible workers may not stay a full year with the company.
On your weekly agency payslip, you will see a section called Reserveringen (Reserves). There you will see how, week by week, your 8% Vakantiegeld and your paid holiday hours ( Vakantiedagen ) are set aside.
Agencies usually pay this pot of money in three different ways:
Spread payment (Inclusief): some agencies include that 8% directly in your weekly salary. In other words, you earn more each week, but in May there is no holiday pay because it has already been paid in advance. (Careful: if you are offered this, make sure the base salary without the 8% meets the legal minimum wage).
Annual payment at the end of May: just like traditional companies. The agency keeps your money and, in the first week of June, makes a big transfer with everything accumulated.
Payment at the end of the contract: if your contract lasts 6 months (January to June), the agency will pay all the accumulated Vakantiegeld in your final settlement or Eindafrekening .
3. The tax hit: the harsh reality of taxes (Bijzonder Tarief)
Now the critical moment: the Spanish worker opens their banking app at the end of May, sees the payment and asks: 'Who stole half my money?'
Nobody has stolen anything; you have just met the relentless Dutch tax office.
The most common mistake is thinking that €1,500 gross of accumulated Vakantiegeld means €1,500 net. That's mathematically impossible. The Dutch tax system is progressive. Vakantiegeld, year-end bonuses and severance pay are not considered 'regular salary'. The government classes them as 'special rewards' and applies a special tax rate known as the Bijzonder Tarief.
Why do they take so much?
On your weekly or monthly payslips, the state applies tax credits (heffingskortingen) so your net wage is decent to live on. But when you receive the holiday payment, the state assumes that money 'increases your annual wealth' and withholds a much higher percentage to make sure you don't owe tax at the end of the year.
The general rule in 2026: for average salaries (up to about €38,000 gross a year), around 37% – 40% is withheld from the holiday payment.
Realistic example:
You have €1,200 gross of Vakantiegeld in your payroll 'piggy bank'.
When May comes, the Belastingdienst keeps approximately 38% (€456).
Around €744 net will reach your bank account.
It is essential to do this calculation in your head before planning your holidays. Don't count on the gross amount; always assume you will lose about 40% along the way.
The good news: the M-Biljet saves you
That 40% taken in one go is a preventive withholding. It is very likely that too much has been withheld. How do you get it back? The following year, when you file your Dutch tax return (the famous M-Biljet form for your first year). The system will calculate your exact income and, if too much tax was taken from your holiday pay, you will be refunded hundreds of euros.
4. A vital difference: Vakantiegeld (money) vs. Vakantiedagen (days off)
Another source of huge confusion in warehouses and factories is mixing up money and time off. In Dutch they sound similar, but they are completely different concepts that appear separately on your payslip ( reserveringen ).
Vakantiegeld (holiday money): this is the 8% in euros we have been analysing in this article. It is capital, cash.
Vakantiedagen (holiday days): this is your right not to go to work and still be paid.
By law, in the Netherlands you are entitled to at least 4 weeks of paid holiday a year (20 days if you work full time, 5 days a week).
As with the money, if you work for an agency, you build up holiday hours for every hour you work. If one day you decide to go to Spain for a week in August, you talk to your agency, request those days and they pay you for that week using your Vakantiedagen pot. Using your days off doesn't take a single cent from your 8% holiday pay. They are two completely independent pots of entitlements.
5. What happens to my holiday pay if I resign or am dismissed?
This is the safety net of the Dutch employment system. Vakantiegeld is not a 'loyalty bonus'. It is part of your salary that has been legally set aside. It's yours, whatever happens.
It doesn't matter whether the company decides not to renew your contract, whether the agency runs out of work at your warehouse or whether you yourself decide to pack your bags, resign and go back to Spain because you don't like the weather.
The moment your employment ends, the company is legally obliged to prepare your Eindafrekening (final settlement). Within a maximum of about 6 weeks after you leave (although most reputable agencies do it within 1 or 2 weeks), you will receive a final payment including:
Your salary for the last days worked.
All the Vakantiegeld (the 8%) you have built up until that exact day.
Payment for any holiday hours ( Vakantiedagen ) you haven't taken.
In short: you never lose your holiday pay. If you leave in March, you will receive the proportional part for the months worked since January.
6. Frequently Asked Questions (FAQ) about holiday pay
Am I entitled to Vakantiegeld if I am on sick leave? Yes. If you fall ill and enter the Ziektewet (Sickness Benefits Act) system, the benefit you receive (usually at least 70% of your base salary) continues to build up the 8% for your holiday pay.
My salary is the statutory minimum wage, does it already include holiday pay? No. The law is very strict: the statutory minimum wage in the Netherlands (which in 2026 is above €13 an hour) does not include Vakantiegeld . If a company pays you the strict minimum wage, it must pay you the 8% on top of that amount.
If my company pays Vakantiegeld in May and I started work in April, do I get anything? Yes, you will receive the proportional part. In May you will receive the amount built up for that single month worked. From June, you start building up from zero for May of the following year.
Conclusion: plan your savings intelligently
Working in the Netherlands requires a change of financial mindset. You won't get a surprise bonus at Christmas, but you will generate a guaranteed flow of savings that, if you know how to manage the tax burden, will be a decisive cash injection at the end of spring.
Knowing that part of your effort is legally protected week after week gives moving abroad real financial sense. The secret to avoiding nasty surprises is simple: always calculate conservatively, allow for the tax office's Bijzonder Tarief and, above all, don't sign with shady agencies offering 'all-inclusive' wages without a payslip breakdown.
At International Job Challenge , transparency is not an option, it is our business model. We want you to know your rights before you even set foot in the airport and to have complete control over your payslips, your reserves and your holidays.
Do the numbers add up and are you ready to take the leap with an agency that speaks plainly? 👉 Check our Job Offers in the Netherlands , pack your bags and start building your future.
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