Holiday pay: it's coming up again!

Everyone who works is entitled to holiday pay. So are you! This is paid once a year, no later than June. Sometimes it is paid monthly, which must be stated in the employment contract and clearly on the payslip. 

When will I receive my holiday pay?

Holiday pay is usually paid in May or by June at the latest. If you haven't worked the entire 'holiday year' with your employer, you will receive a portion of the total holiday pay. For example, if you started in January, you will receive 5/12 or 6/12 of the amount, depending on the month your employer pays the holiday pay.

Even as a temporary worker or if you work through an agency, you are entitled to holiday pay. This is paid in one go by June at the latest, or monthly with your salary.

Tax and holiday pay

Note: holiday pay is taxed at a 'special rate'. This means you pay slightly more income tax on your holiday pay than on your 'regular' salary. The percentages are determined by the Tax Office.

How do I calculate my holiday pay?

The tax percentage depends on your income. The more you earn, the higher the percentage.

• For an annual total of up to €75,518 gross per year, the special rate for 2024 is set at 36.97% tax.
• For an annual total higher than €75,518 gross per year, the special rate is set at 49.50% tax.

Holiday pay is considered an additional payment and can therefore be calculated in whole or in part at the higher rate. This prevents your employer from paying too little tax.

Example

Employee X has a monthly gross salary of €2,000

The total gross annual income (gross annual salary plus gross holiday pay) is then €25,920

With an income of €25,920, you fall within the tax rate of 36.97%. On the gross holiday pay of €1,920, 36.97% tax is then withheld. Note: other deductions such as pension contributions are also withheld from the holiday pay.

Do you have a question about the amount of your holiday pay? Or have you not received holiday pay? Then contact us!