Freelance and Self-Employment Management
Holiday Pay
Daphne
As a business or platform, you are legally required to pay holiday allowance to your employees. But when exactly, how much, and what if cash flow is tight? This article covers everything. From the legal rules to practical tips for your business.
What is holiday pay?
Holiday pay (vakantiebijslag in Dutch) is a legally mandated annual allowance that employers must pay their employees in addition to their regular salary. It is designed to help employees fund their holidays and leisure time.
For SMEs and platforms working with staff, whether through secondment, flex workers, or direct employment contracts, holiday pay is a fixed, recurring cost.
Key facts:
Minimum 8% of gross annual salary
Subject to payroll tax
Must be paid no later than June each year
A statutory right of every employee
If a collective labour agreement (CAO/CLA) applies, those rules take precedence
How much holiday pay are you required to pay?
The rules are laid out in the Dutch Minimum Wage and Minimum Holiday Allowance Act. As an employer, you must pay at least 8% holiday allowance on gross annual salary. Profit-sharing payments and year-end bonuses do not count toward this calculation.
Is a collective labour agreement (CLA) in place? Different rules may apply. However, even if the CLA makes an exception, employees must always receive at least 108% of the statutory minimum wage.
Example: An employee earns €3,000 gross per month, or €36,000 annually. The minimum holiday pay is €36,000 × 8% = €2,880 gross.
When must you pay holiday pay?
Holiday pay must be paid no later than June. Most companies choose May, so employees have access to the funds before the summer holiday season.
Payment dates (at a glance)
Many employers use fixed payout moments. These are the most common options:
May: most common, well ahead of the summer holiday period.
June: the latest month allowed by law.
Monthly: allowed if it is explicitly included in the employment contract (paid alongside the regular salary).
At the end of employment, accrued holiday pay must be paid pro rata in the final settlement.
Can you pay holiday allowance monthly?
Yes, but only if this is explicitly stated in the employment contract. For platforms and SMEs with high staff turnover, a monthly payment can be a smart approach. It spreads costs evenly across the year and prevents a large cash outflow in May or June.
Can you delay holiday pay?
Not without consent. If you want to defer payment, you need the employee's written permission, documented as an addendum to the employment contract. Deferring without permission exposes you to legal risk.
Can you pay holiday allowance early?
Yes. If an employee requests early payment, you may comply — but you are not legally obliged to. Always document the agreement in writing.
Holiday pay during sick leave
Employees on sick leave continue to accrue holiday pay. A long-term sick employee still has the right to 8% holiday allowance on the salary that continues to be paid. This is a common misconception among employers, including platforms with large numbers of flexible workers.
Holiday pay at the end of employment
When an employee leaves, you must pay out any accrued holiday pay on a pro-rata basis in the final settlement. This also applies to dismissal. Don't overlook this — it is a legal obligation and a common mistake in fast-growing SMEs and platforms.
What if you fail to pay holiday pay on time?
As an employer who fails to pay holiday pay — or pays late — you face serious risks:
Legal action from the employee — An employee can demand payment via the subdistrict court (kantonrechter).
Fines and legal costs — If the court rules in the employee's favour, you not only owe the holiday pay, but potentially a fine and legal fees on top.
Reputational damage — Especially for platforms that depend on the satisfaction of their connected professionals.
Tip: Make sure holiday pay obligations are clearly tracked in your payroll administration and that funds are reserved well in advance.
Holiday pay and cash flow: a challenge for SMEs and platforms
For many SME owners and platforms, paying out holiday allowance in May or June puts pressure on liquidity. Especially when outstanding client invoices haven't been paid yet, meeting this obligation can be difficult.
Factoring as a solution
Finqle offers a direct solution: by selling your outstanding invoices to Finqle, you gain immediate access to your money — without waiting for your clients' payment terms. This gives you the cash flow you need, at exactly the right moment, to pay your employees the holiday allowance they are entitled to.
For platforms, this is even more relevant: you often work with high volumes of professionals and corresponding invoice flows. Factoring through Finqle ensures those flows never become an obstacle to meeting your obligations to employees or connected professionals.
Holiday pay and platforms: specific considerations
Platforms working with a mix of employed staff, seconded professionals, or other arrangements should be especially attentive:
Review each employment relationship to determine which holiday pay rules apply.
Coordinate with your payroll provider on accruals and reserves.
Be transparent with your staff about when and how holiday pay will be paid — this prevents questions and disputes.
Document everything in writing, especially for monthly payment arrangements or deviating CLA agreements.
Conclusion: Well-managed holiday pay is a good employment practice
Paying holiday allowance is not just a legal obligation — it's a signal to your employees that you are a reliable employer. For SMEs and platforms looking to grow, attract, and retain good staff, this topic deserves professional attention.
Is cash flow running tight ahead of the holiday pay period? Get in touch with Finqle and discover how factoring helps you always pay on time.
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