Dutch Bonus, 13th Month and Vakantiegeld for Expats 2026

Most expats arriving in the Netherlands encounter the same confusion. Dutch payroll is structured differently from US, UK or German equivalents. The base salary on your contract is not the full picture. Vakantiegeld, a 13th month, performance bonuses and various allowances each have their own rules and timing. This guide explains them.

💡 For the broader Dutch payslip see our Dutch payslip loonstrook explained and average salary in NL.

Quick answer: You are entitled to vakantiegeld of at least 8% of your gross annual salary (with limited exceptions, Rijksoverheid). A 13th month and bonuses are not set by law, only by your contract or cao. All of it is taxable income, so ask payroll how your payments are structured.

What Your Dutch “Salary” Actually Means

When a Dutch employer offers “EUR 60,000 per year”, check what is included. The structure can include:

• Base salary: the EUR 60,000, paid in 12 monthly instalments
• Vakantiegeld (holiday allowance): at least 8% of annual gross salary, which is EUR 4,800 on EUR 60,000, usually paid in May or June
• Possibly a 13th month: one extra month’s salary, EUR 5,000 on EUR 60,000
• Possibly a performance bonus: variable, based on personal and company performance
• Possibly other allowances: travel, working from home, and so on, itemised separately

So a “EUR 60,000” salary with vakantiegeld and a 13th month adds up to EUR 69,800 gross (60,000 + 4,800 + 5,000), paid across the year with peaks around vakantiegeld and the 13th month.

When comparing offers, compare total annual compensation and not only the base.

Vakantiegeld: The Statutory Minimum of 8 Percent

How It Works

The legal term is vakantiebijslag. According to Rijksoverheid you are entitled to at least 8% of your gross annual salary of the past year, calculated over the wages you earned in that year (for example from May to May). Other payments such as profit shares and year-end payments do not count towards the calculation. If your pay was lower because of illness or leave, you build up vakantiegeld on that lower pay, and overtime counts at its full value.

Exceptions exist. A collective agreement can state that there is no vakantiegeld, but you must then receive at least 108% of the minimum wage. If you earn more than 3 times the minimum wage, your employer can agree in writing to pay no or a lower amount.

When You Get It

Your employer pays vakantiegeld at least once a year. Most employees get it in May or June, and the agreements are in your employment contract or cao (Rijksoverheid).

How Much

For a EUR 60,000 base salary, 8% is EUR 4,800 gross vakantiegeld. Your contract or cao may specify a higher percentage; check your own paperwork.

Tax Treatment

Vakantiegeld is part of your taxable box 1 income. Payroll withholds tax on one-off payments using a special method (the bijzonder tarief), so the amount withheld can look high compared with a normal month. The final tax is settled in your annual return, where too much or too little withholding is corrected.

The box 1 rates for 2026, for people below state pension age, are 35.75% up to EUR 38,883, 37.56% up to EUR 78,426 and 49.50% above that (Belastingdienst).

For expat-ruling holders, the tax-free reimbursement and taxable-salary condition must be applied through payroll; it is not safe to assume that exactly 70% of every bonus or holiday-payment component is taxable. See the 30% ruling guide and ask payroll how the contract is structured.

When You Leave a Job

Check your final payslip for accrued vakantiegeld up to your leaving date. If it is missing or looks wrong, ask your employer to explain the calculation.

The 13th Month

How It Works

A 13th month (dertiende maand) is an extra month’s gross salary, usually paid at year-end. Unlike vakantiegeld it is not mandatory: it is agreed in your contract or cao.

Who Has It

It varies by employer, sector and cao, and we have no reliable source for how common it is. Check your contract or cao. When evaluating a job offer, always ask: “is there a 13th month or year-end bonus, and is it in the contract?” The answer affects total compensation.

When It Is Paid

The timing is set in your contract or cao.

How Much

Often equal to one month’s gross salary, but the contract or cao decides. It is normally pro-rated if you have not worked the full year; check the wording.

Tax Treatment

Same as vakantiegeld: part of your taxable box 1 income, with withholding by the bijzonder tarief method. The net amount can therefore look smaller than you expected at the moment of payment, and the final tax is settled in your return.

Performance Bonuses

Common Structures

• Annual bonus: based on personal performance and company results, often paid after the year closes
• Quarterly bonus: smaller, often in sales-driven roles
• Sign-on bonus: a one-off at hire, sometimes with a claw-back if you leave early; check the contract
• Retention bonus: paid for staying through specific milestones
• Stock options or RSUs: used by some employers, with a vesting schedule in the plan rules

We do not quote typical bonus percentages by sector, because we have no reliable source. Negotiate based on your role, level and the employer’s own policy, and ask for the terms in writing.

Tax Treatment

Performance bonuses are taxed in box 1, like vakantiegeld and a 13th month. A bonus can push part of your income into a higher box 1 bracket, with rates of up to 49.50% in 2026 (Belastingdienst).

Currency Considerations

If your home country uses a non-euro currency and you want to send bonus money abroad, compare the exchange rate and fees of your bank with those of multi-currency providers before you transfer. For broader transfer context see our Wise vs Revolut comparison.

Other Common Allowances

Reiskostenvergoeding (Travel Allowance)

If you commute, your employer may pay a tax-free allowance of up to EUR 0.25 per kilometre in 2026 (Belastingdienst; increased from EUR 0.23, with effect from 1 January 2026). For example, 30 commuting kilometres per working day is EUR 7.50 per day, which is EUR 1,575 over 210 working days. Whether you get a travel allowance at all depends on your contract.

Thuiswerkvergoeding (Working from Home Allowance)

For days worked from home, employers can pay a tax-free €2.45 per day (2026 maximum, Belastingdienst). Whether you get it depends on your contract.

Lunch and Maaltijdvergoeding

Some employers provide a lunch or meal allowance. Ask what applies at your employer.

Internet and Phone

Some employers reimburse home internet or a work phone. The tax treatment depends on the reimbursement; ask payroll.

Pension Contribution

Many Dutch employers contribute to a pension scheme, which is part of your total compensation even though it does not appear as take-home pay. Ask what your employer contributes and what your own share is.

For pension context see our Dutch pension complete guide.

How to Read Your Loonstrook (Payslip)

Your monthly payslip itemises:

• Brutoloon (gross salary): your base
• Vakantiegeld: how much has been built up and when it is paid (Rijksoverheid: your payslip shows how much vakantiegeld you get)
• Loonheffing (wage tax and premiums withheld)
• Pensioenpremie (pension contribution, your share)
• Other deductions (such as a company bike scheme or parking)
• Nettoloon (take-home pay)

When vakantiegeld or a 13th month is paid, an extra gross amount appears with a corresponding tax line.

For a full payslip walkthrough see our Dutch payslip explained.

Negotiating Salary in the Netherlands

When you receive a job offer, evaluate total annual compensation:

• Base x 12 months
• plus vakantiegeld (at least 8% of the base)
• plus a 13th month, if there is one
• plus a performance bonus (typical or guaranteed?)
• plus the employer pension contribution
• plus allowances (travel, working from home, lunch, internet, phone)
• plus equity, if any
• plus other benefits (training budget, lease car)

A worked example, with vakantiegeld at 8% of the base and a 13th month of one month’s base:

So the lower base with a 13th month comes out about equal before any bonus. Always model this before negotiating, because base salary alone can mislead.

For salary negotiation tactics see our salary negotiation in NL.

Strategic Use of Lump Sum Income

Vakantiegeld and a 13th month are large payments that you can plan for. Common uses:

1. Build an Emergency Fund

If you do not yet have a few months of expenses saved, a lump sum is a natural target. See our emergency fund for expats in NL for sizing.

2. Investing

Investing through DEGIRO, Trade Republic or another platform; see our DEGIRO review and best ETF platforms. Whether you invest a bonus in one go or spread it out is a personal choice; every purchase carries transaction costs. Investments fall under Box 3; tax treatment depends on your individual circumstances and may change. Please consult a tax adviser. Investing involves risk of loss. This is not investment advice.

3. Pension Top-Up

Ask a tax adviser whether you have room for extra pension saving that reduces your taxable income (jaarruimte or reserveringsruimte).

4. Mortgage Overpayment

If you own a Dutch home, check your mortgage terms for the rules and limits on partial prepayment.

5. Holiday Funding

The historical purpose: pay for the summer trip without dipping into savings.

Common Mistakes Expats Make

Mistake 1: Spending the Net As If It Will Repeat

Vakantiegeld is paid at least once a year, not monthly (unless your contract says so). Build your budget on your monthly pay and treat vakantiegeld and bonuses as separately allocated.

Mistake 2: Not Asking About a 13th Month at Negotiation

If you do not ask, the offer might not include it. The question is free.

Mistake 3: Forgetting to Reconcile in Your Tax Return

If the withholding on a bonus or vakantiegeld was too high or too low, the difference is settled in your annual return. See Dutch tax return for employees.

Mistake 4: Letting a Bonus Sit Unused

A large bonus sitting in a current account earns no interest (see your bank’s current rate). Decide on a goal, such as a savings account, investment platform or specific fund, within a reasonable time.

Mistake 5: Sending Bonuses Abroad Inefficiently

If your home country uses a non-euro currency and you transfer regularly, compare your bank’s exchange rate and fees with Wise or other multi-currency tools before each transfer.

Mistake 6: Not Modelling 30 Percent Ruling Implications

If you have the 30% ruling, the effect on vakantiegeld and a 13th month depends on how your contract is structured. A tax adviser can model the exact effect; see our tax advisors for expats guide.

Special Situations

Part-Time Work

Vakantiegeld is calculated over your gross salary, so for part-time workers it follows the salary you actually earn. Check your contract for the other components.

Multiple Jobs

Each employer pays vakantiegeld and (if applicable) a 13th month separately, and each withholds tax on its own payments. Combined income can therefore be under-withheld if several jobs together push you into a higher bracket; your annual return settles the difference.

Joining Mid-Year

Vakantiegeld builds up over the salary you actually earned, so in your first year it reflects only the months you worked. Check your first payment against your payslips.

Leaving Mid-Year

Check your final payslip for accrued vakantiegeld and, if applicable, a pro-rated 13th month.

ZZP / Freelance

Self-employed people do not have vakantiegeld or a 13th month, because these are employer concepts. As ZZP you build holiday savings and year-end cushions yourself. See our ZZP registration guide.

Sector-Specific Notes

Compensation structures differ between sectors and employers. Tech employers may use equity, public-sector and healthcare roles are often governed by a cao, and financial firms are subject to legal rules on variable pay. We do not quote numbers per sector. Check the cao that applies to you and ask your employer for the terms.

Final Thought

Dutch compensation rewards understanding how it is built. A salary that looks normal on paper can differ in real annual cash from a similar headline figure depending on vakantiegeld treatment, the presence of a 13th month, bonus structure and benefits.

When evaluating offers, negotiating and planning your year, model the full picture. For ongoing financial planning context see our emergency fund guide, investing in NL and average salary by sector.

External sources: Rijksoverheid: how high is my vakantiegeld and Belastingdienst: box 1 rates.