The ‘May Bonus’ Explained: Your Ultimate Guide to Dutch Holiday Pay (Vakantiegeld)

Amsterdam – In the Netherlands, May is not just the month of blooming tulips; it is the month when bank accounts across the country suddenly look much healthier. It’s time for Vakantiegeld (Holiday Allowance).

But this mandatory “8% bonus” is often misunderstood. Refugees with residence permits wonder if they qualify, freelancers (ZZP) wait for a payment that never comes, and expats are often shocked by the high tax rate applied to it. Whether you are a Statushouder, a corporate employee, or your own boss, here is exactly how the system works for you in 2026.

Table of Contents

• The Golden Rule: What is the 8%?
• Scenario 1: The Employee (Loondienst)
• Scenario 2: Statushouders & Social Benefits (Bijstand)
• Scenario 3: The ZZP / Freelancer Reality
• The Tax Shock: Why is it Taxed So Heavily?
• Key Takeaways
• Dutch Learning Corner

The Golden Rule: What is the 8%?

In the Netherlands, Holiday Allowance is not a gift from a generous boss; it is a legal right. Under the “Law on Minimum Wage and Minimum Holiday Allowance,” every employee is entitled to an extra payment amounting to **8% of their gross annual salary**.

Think of it this way: For every month you work, your employer (or the government) holds back a small portion of your “real” salary and forces you to save it until May.

Scenario 1: The Employee (Loondienst)

If you have a standard employment contract, this is the most straightforward scenario.

• Accrual Period: The money piles up from June of the previous year to May of the current year.
• Payout Date: Usually with your May salary (end of May).
• Calculation: If you earn €3,000 gross per month, you save €240/month. By May, you receive a lump sum of roughly **€2,880 gross** on top of your salary.

Scenario 2: Statushouders & Social Benefits (Bijstand)

For status holders (refugees with a 5-year residence permit), your rights depend entirely on your income source. You have the exact same rights as a Dutch citizen.

A) If You Are Working

If you have a job, you fall under “Scenario 1” above. Your employer MUST pay you the 8% holiday money in May, regardless of your visa status. The IND salary thresholds do not apply to you, but labor laws do.

B) If You Receive Benefits (Uitkering)

If you are unemployed and receive social assistance (Bijstandsuitkering) from the Municipality (Gemeente):

* Yes, you get it: The municipality reserves **5%** of your benefits each month.
* Payout: It is typically paid in **June** (sometimes late May).
* Amount: Since benefits are lower than an average salary, the amount is smaller (usually around €700-€800 for a single person), but it is a guaranteed payment designed to help you cover larger expenses.

Scenario 3: The ZZP / Freelancer Reality

If you are a freelancer (ZZP), this is the cold shower moment: You do not get Holiday Pay.

Because you are your own employer, there is no one to hold back that 8% for you. Many new freelancers make the mistake of charging a low hourly rate, forgetting that when they take a vacation, they earn €0 and get no bonus.

The Tax Shock: Why is it Taxed So Heavily?

Every year, expats complain: “I calculated €2,000, but I only got €1,100! Where did it go?”

Holiday pay is taxed at a **”Special Rate” (Bijzonder Tarief)**. Because this is paid on top of your regular annual income, it often pushes that specific chunk of money into a higher tax bracket or reduces your tax credits (heffingskortingen).

While your regular salary might be taxed effectively at ~37%, your holiday allowance can be taxed at **49.50% or even higher** depending on your total income. It feels unfair, but it is the fiscal reality.

Key Takeaways

• Employees: Expect ~8% of your annual gross salary paid in May.
• Statushouders: If working, same as employees. If on benefits, the Gemeente pays ~5% in June.
• ZZP: You get nothing automatically. You must save it yourself from your invoices.
• Tax: Be prepared for a high tax deduction (often around 50%) on this payout.

Dutch Learning Corner