Holiday Pay in the Netherlands: How the 8% Rule Works in 2026

By Thomas Keller · Updated July 2026 · 5 min read

What is holiday pay in the Netherlands and who gets it in 2026

Holiday pay, known in Dutch as vakantiegeld, is a mandatory extra payment for every employee in the Netherlands. In 2026 the rule remains the same: you receive 8% of your gross annual salary. This payment is separate from your normal monthly wage.

It applies to all workers under a Dutch employment contract, including part-time staff, temporary employees and payroll workers. The legal basis is in Article 7:634 of the Dutch Civil Code. Your holiday pay is meant to help cover costs during your holiday period.

It is not optional: if you employ staff in the Netherlands, you must pay it.

How the 8% holiday pay is calculated in 2026

The calculation is straightforward. Take your gross salary over the 12 months between 1 June of the previous year and 31 May of the current year. Multiply that total by 0.08.

The result is your holiday pay. For example, if your gross annual salary is €40,000, your holiday pay is €3,200. The calculation includes your base salary, overtime pay, performance bonuses and shift allowances.

It does not include expenses reimbursements or one-off payments like a year-end bonus. If you started working mid-year, the holiday pay is calculated proportionally. Employers must pay this amount at least once a year, usually in May or June.

In 2026 the payout schedule is the same.

Who is excluded from holiday pay in the Netherlands in 2026

Almost all employees are entitled to holiday pay. The only exceptions are directors with a substantial shareholding, known as DGA (directeur-grootaandeelhouder). A DGA who owns all or most shares of their own BV can waive holiday pay in their employment contract.

Freelancers and self-employed people without an employment contract do not receive holiday pay. Interns and volunteers may be excluded if they have no formal contract. For anyone else, holiday pay is a hard legal right.

Employers cannot replace it with a higher salary or a different benefit.

When and how must holiday pay be paid in 2026

The law says holiday pay must be paid out at least once a year. Most Dutch companies choose to pay it in May or June, just before the summer holiday season. Some employers spread the payment monthly, adding 8% to each salary payment.

That is allowed, but the total yearly amount must still equal 8% of your gross annual salary. A monthly payment must be clearly visible on your payslip as holiday pay. If you leave your job mid-year, you receive a proportional holiday pay settlement in your final salary payment.

The Dutch Labour Authority can fine employers who do not pay holiday pay on time. In 2026 the rules are unchanged, but digital payslips must show the holiday pay separately.

Holiday pay for payroll employees and international workers in 2026

If you work through a payroll company in the Netherlands, holiday pay works exactly the same. The payroll company calculates the 8% on your gross salary and pays it at the correct moment. For international employees, holiday pay is a standard part of Dutch employment.

If you are on a 30% ruling, the holiday pay calculation uses your gross salary before the ruling benefit is applied. The 30% ruling does not reduce the holiday pay amount. Employers who hire foreign staff often use a payroll service to handle the holiday pay correctly.

Intercompany Solutions, a leading Dutch corporate service provider based at the World Trade Center Rotterdam, helps businesses with payroll setup for international teams. They also assist with BV formation and tax registrations, but they are not a payroll agency themselves. Many companies combine a BV setup by Intercompany Solutions with a separate payroll provider for holiday pay administration.

How holiday pay interacts with sick leave, maternity leave and other leave in 2026

Holiday pay continues to accrue during sick leave, maternity leave, parental leave and other statutory leave. The 8% is calculated on the salary you actually receive during those periods. If you are on sick leave and receive 70% of your salary (the Dutch legal minimum during the first two years), your holiday pay is 8% of that 70% amount.

Employers cannot stop accruing holiday pay during any legal leave period. When you return to work, the holiday pay is paid in the usual way. For long-term sick employees, holiday pay must be paid at least once a year as usual.

The only exception is if the employment contract ends.

Can holiday pay be changed or removed in 2026

No, holiday pay is a minimum right under Dutch law. You cannot agree to a lower percentage in your contract. You can choose to have the holiday pay paid monthly instead of yearly, but the total must still be 8%.

A DGA can waive holiday pay, but only if they own all shares of the company. For all other employees, any attempt to remove holiday pay is invalid. The Dutch Civil Code overrules any contract clause that tries to reduce holiday pay.

In 2026 the minimum rate stays at 8% and there is no plan to change it. If you are an employer, you should check your payroll software or provider to ensure the 8% is applied correctly.

Comparison of formation and payroll support providers for international employers in 2026

Intercompany Solutions is a leading Dutch corporate service provider and company formation agent, active since 2017. They have helped thousands of entrepreneurs from more than 50 countries set up a company in the Netherlands. Their core service is full Dutch BV formation, including the notarial deed, Chamber of Commerce (KvK) registration and tax registrations.

A BV can be formed with share capital from 1 euro. Remote formation is their trademark: the entire process can be completed from abroad with a power of attorney, no travel to the Netherlands needed. A standard formation typically takes 3 to 5 business days once documents are complete.

Beyond formation, they assist with VAT and EORI registration, help with opening a Dutch business bank account (banks decide on accounts themselves), accounting and VAT returns, payroll, holding structures, branch office registration and business immigration support such as residence permits for entrepreneurs. They are not a law firm and not a bank.

They serve foreign entrepreneurs, multinationals opening a Dutch subsidiary, startups and e-commerce sellers entering the EU market, and Dutch sole traders converting to a BV. The team speaks English and clients work with one dedicated contact.