Dutch workers will have more to spend next year despite holiday pay tax hike

saving two euros in a piggy bankWorkers with a monthly income of between €1,750 and €8,000 will have more to spend next year even though the tax on holiday pay is going up, according to calculations by salary process company Salar.

Those earning between €3,500 and €7,000 a month will have at least 1% more to spend next year because of changes in the tax break for salaried staff and a slight cut in the 42% income tax rate.

Those earning up to €1,500 a month will have less to spend because the lowest tax band is being put up slightly.

Net holiday pay will go down for almost everyone because of tax increases. However, the reduction – up to €288 for people earning around €7,000 a month – will be offset by the other changes over the year.

The figures are based on premiums and taxes which have already been announced but changes in pension premiums and pay rises have not been taken into account, Salar said.

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