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Low incomes set to benefit from holiday pay boost

April 25, 2024
Photo: DutchNews.nl

This year’s holiday pay packages are likely to be a disappointment for people earning more than the modal salary, but those on low incomes will get more than last year, according to calculations by salary processor ADP. 

Holiday pay is traditionally paid out in May, but the amount changes every year along with shifts in income tax and tax discounts that depend on the individual’s own situation. 

This year, people on the modal salary of €3,395 per month will take home €19 less holiday pay than in 2023, while those earning around €3,000 will have € 242 more, ADP said.

Workers earning three times modal, or at least €10,000 a month, will notice a cut of some €637, ADP said. But a part-timer who earns €1,750 a month will have €578 extra to spend on a vacation.

All workers and benefit claimants have the right to holiday pay, which is equivalent to 8% of their annual income. The concept dates back to 1910 and the money was traditionally paid out at the end of May to make sure people actually used it to pay for a break.

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