Many Dutch people are looking forward to the holiday allowance of 2023 this month. Calculating holiday allowance is now popular hobby number one. It’s so handy to know exactly what amount you can expect (and how you can make more of it).
Do you think the holiday allowance in 2023 is not enough? Then there are ways to increase the amount considerably over time. Even if you are not waiting for the risks of investing. Do you want to take the step to invest money? Read here what the options are with your holiday money.
How much holiday pay will I receive in 2023?
That sounds nice, of course, all those possibilities to invest your holiday money. But then it is of course nice if you first know how much holiday money you can actually count on in 2023.
In the Netherlands you are entitled to at least 8 percent holiday allowance, based on your gross annual salary. Unless otherwise agreed in the collective labor agreement. But how much net holiday allowance can you expect in 2023?
Calculate holiday pay
The net amount of money you receive therefore depends on your annual income and on the percentage set by your employer as holiday allowance. Suppose you earn an average salary of around 40,000 euros on an annual basis and you receive the minimum holiday allowance of 8 percent and you have accrued a full year’s holiday allowance. You can then count on a gross holiday allowance of 3,200 euros.
But what does that mean net? We arrive at the Dutch folk hobby ‘calculating holiday money’. With an average income level, you can assume a net holiday allowance of 1,700 euros in 2023. However, you may get a little less deposited into your account. That depends on the income you earned a year ago: the so-called annual wage special rate is used for this. Suppose you earned $39,000 last year, and $40,000 this year. Then you will receive a holiday allowance of 1,615 euros paid into your account.
Do you want to make an exact calculation for your salary yourself? Then use this or this calculation tool.
Invest vacation allowance
Earlier we showed what investing holiday money can yield. That is not without risks, but we have calculated it on the average interest rate of the past hundred years and have set low. Check the possible return.
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