Reduced holiday funds, nooo! Holiday pay for many people in the Netherlands will decrease this year

May payday is the best time of the year for many people as they see their bank balances a lot more fresh and full than it usually is. However, for many people in the Netherlands, it may not be looking quite as fresh as they were expecting this year.

If you’re earning 34,000 euros or more, then you are expected to have less holiday pay than you did the year previously. According to RTL Nieuws, this is ‘due to the faster reduction of the employed person’s tax credit.’ This has meant that many people in the Netherlands will see a loss to their holiday paycheck this month.

According to RTL Nieuws, for an average income, the loss is 3 euros. This means that if you earn 2x the average wage, it will acquaint to a 117 euro loss and with 2.5x average, a 147 euro loss.

Who will be affected and who won’t be?

If you earn the minimum wage you will be better off this year and will earn slightly more on your holiday pay than what you did last year.

If you are earning 34,000 or more you will be worse off. The more you earn, the worse you will be (unless you are in the highest bracket).

With high incomes of 98,000 or more, your holiday pay will actually rise (which confirms to most of us, that we really wish we were earning a lot more money). This is because are all paying less tax on holiday pay, therefore it benefits those who earn the most in this case. ‘For most incomes, that tax benefit is more than offset by the reduced labour credit’ reports RTL Nieuws.

Back to plan B it seems.

Will you be affected? Let us know in the comments!

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Emma Brown
A familiar face at DutchRevew. Emma arrived in Holland in 2016 for a few weeks, fell in love with the place and never left. Here she rekindled her love of writing and travelling. Now you'll find her eating stroopwafels in the DutchReview office since 2017.

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