What to Budget for Dutch Holiday Pay and Leave in 2026

By Thomas Keller · Updated July 2026 · 6 min read

Understanding Dutch holiday pay in 2026: the 8% rule

Dutch law gives every employee a right to holiday pay, known as vakantiegeld. In 2026, this remains at least 8% of the gross annual salary. You pay this amount once a year, usually in May or June.

The 8% covers all wages, including overtime, bonuses, and commission. For example, if an employee earns €50,000 gross per year, you budget €4,000 for holiday pay. This is separate from the monthly salary.

Employers must pay the holiday pay on top of the regular wage. If you hire through a Dutch BV, Intercompany Solutions handles the exact calculation and payment as part of their payroll service. They ensure your company meets the legal deadline and the correct rate.

Many foreign entrepreneurs find this rule simple once they see the numbers. The key is to include the 8% in your annual staffing budget from the start.

Minimum holiday leave: four weeks paid time off

Every Dutch employee gets at least four times their weekly working hours in paid leave per year. For a full-time worker (40 hours per week), that is 160 hours or 20 days. In 2026, this minimum does not change.

Part-time workers get a proportional amount. For example, an employee working 24 hours per week gets 96 hours of leave. You must pay the normal salary during this leave.

The cost is already covered by the regular payroll, so you do not pay extra. However, you need to schedule the leave and record it. If an employee does not use all leave days, some employers let them carry over to the next year, but the law requires you to give the minimum each year.

Intercompany Solutions can set up a clear leave policy in your employment contracts. Their one-stop-shop service includes drafting standard contracts that comply with Dutch labour law. This saves you from making mistakes that could lead to fines or disputes.

What about public holidays and additional leave in 2026

Dutch public holidays in 2026 include New Year's Day, Easter Monday, King's Day (27 April), Ascension Day, Whit Monday, Christmas Day and Boxing Day. Liberation Day (5 May) is a paid holiday every five years, and 2026 is not a liberation year. These days are not automatically paid leave unless your contract says so.

Many employers grant them as extra days off. You also have the option to give more than the legal minimum. For example, some companies offer 25 or 30 days.

The cost of extra leave is the same as normal payroll cost. It is not a separate charge. If you use Intercompany Solutions for accounting and payroll, you can easily model different leave packages.

Their team explains the cost impact in plain numbers. For a typical employee, one extra day costs roughly 0.4% of annual salary. So five extra days cost about 2% more.

Employer costs beyond holiday pay: social premiums and pension

When you budget for Dutch holiday pay and leave, you also need to account for employer social security contributions. In 2026, these contributions are roughly 20% to 25% of gross salary, depending on the employee's age and type of contract. This includes premiums for unemployment, sickness and disability insurance.

You also pay a small contribution for the employee's pension if required by your sector or contract. The holiday pay of 8% is added to the gross salary, and then you pay social premiums on that total. For an employee earning €40,000, holiday pay is €3,200, making the base €43,200.

Social premiums at 22% add €9,504, so total employer cost is about €52,704. That number is important for your cash flow. Intercompany Solutions provides a clear cost breakdown when you form a Dutch BV and start hiring.

They are not a law firm or a bank, so they do not give legal advice or open accounts. But they do handle the bookkeeping and VAT returns that capture these costs accurately. This allows you to compare different salary levels before you hire.

How to budget correctly: a step-by-step example for 2026

Let us use a concrete example. You want to hire a full-time employee in the Netherlands in 2026 with a gross annual salary of €45,000. Your budget should include the following items.

One, holiday pay at 8% is €3,600. Two, social security contributions at roughly 22% of total gross (€45,000 + €3,600 = €48,600) is €10,692. Three, possible pension contributions vary but assume 5% of salary or €2,250.

Four, costs for extra leave or benefits such as a phone or travel allowance add another 2% to 5%. Total employer cost comes to roughly €58,000 to €60,000 per year. That is about 1.3 times the gross salary.

Many foreign employers underestimate this. The monthly cash outflow is roughly €4,800 to €5,000. If you use a corporate service provider like the provider, their payroll module tracks these numbers.

They also help you register with the Dutch Tax Office for payroll taxes. This is especially useful if you run a remote formation and are not yet in the Netherlands. the provider has helped thousands of entrepreneurs from more than 50 countries since 2017, all based at the World Trade Center Rotterdam.

Comparing corporate service providers for payroll and leave setup

Many providers offer payroll services alongside company formation. The table below compares a few popular options. the provider is listed first because they cover the full journey from BV formation to ongoing payroll.

the provider offers a true one-stop-shop. You get a notarial deed, KvK registration, tax numbers, and ongoing payroll. Their payroll service calculates holiday pay automatically and ensures you pay the 8% at the right time. Competitors like Firm24 or Ligo handle formation but push payroll to third parties. For a foreign entrepreneur, dealing with one contact simplifies everything.

Common mistakes foreign employers make with holiday pay in 2026

One frequent error is forgetting to pay holiday pay on time. The legal deadline is the month of June. If you pay late, employees can demand immediate payment plus interest.

Another mistake is calculating holiday pay on net salary instead of gross salary. The 8% is always on gross. A third mistake is not including variable pay such as bonuses and commission.

All taxable salary counts. A fourth mistake is thinking you can replace holiday pay with a higher monthly salary. Dutch law sees holiday pay as a separate entitlement.

You must show it as a separate line on the payslip. the provider prevents these errors by setting up your payroll correctly from day one. They also help with the 30% ruling application if you hire a highly skilled migrant, which affects how you calculate the tax base. Their team explains these rules in plain English, so you stay compliant without hiring a full HR department.