Dutch people with less than an average income will often receive more holiday pay next month than a year earlier. The opposite is the case for people with an above-average income. Payslip processor ADP reports this based on its own calculations.
This year less holiday pay for higher incomes
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The average income in the Netherlands is 3,395 euros gross per month. People who earn this salary receive a net 19 euros less holiday pay than last year. Dutch people who earn three times the average see their holiday pay even shrink by 637 euros.
New tax rate
According to Dik van Leeuwerden, expert in the field of legislation and regulations at ADP, only the group of three-time average earners is actually worsening. ‘If you have a higher income, you owe a little more tax and tax is also calculated in a special way on the holiday pay.’
And that is because this group still has to deal with a higher tax rate that is withheld from the holiday pay compared to the previous year. “It is a significant decline,” says Van Leeuwerden, who points out that the highest-earning group also improved in January. At the bottom line, according to the expert, that group will lose 125 euros annually.
For the rest, he says, everyone is improving. ‘At the bottom line, on an annual basis, everyone gains between 850 and 950 euros net.’
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Hundreds of euros more
Below-average incomes generally receive more holiday pay. For example, someone who earns 3,000 euros gross monthly will receive 242 euros more holiday pay next month, according to ADP. A part-time worker with a gross income of 1,750 euros even receives an extra 578 euros.
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The differences arise from the settlement of the income-related payroll tax credit. Changes take place every year that affect the amount of payroll tax that is withheld from holiday pay. ADP also reported in 2023 that employees with a lower salary in particular received more holiday pay that year.
Also read | Higher incomes will miss out on some holiday pay this year
It is not the case that the amount of holiday pay increases or decreases proportionately to the amount of a salary. For example, Dutch people who earn twice or two and a half times the average receive the same amount of holiday pay as last year.
