Lower incomes will receive more holiday pay in May, higher incomes less – Kassa

Traditionally, holiday pay is paid out in May. Anyone who earns less than the average will receive more holiday pay next month than last year. People with an average or above-average income actually receive less holiday pay, according to calculations by pay slip processor ADP.

The average income in the Netherlands is 3,395 euros gross per month. Below-average incomes will receive more holiday pay in May than in 2023. For example, someone who earns 3,000 euros gross monthly will receive 242 euros more holiday pay, according to ADP. A part-time worker with a gross income of 1,750 euros even receives an extra 578 euros.

Anyone who earns exactly an average salary will receive a net 19 euros less holiday pay this year than last year.

Dutch people who earn three times the average will see their holiday pay shrink by 637 euros.

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.

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. Source: ADP/ANP