Holiday money credited? This is how you handle it smartly | Money

If you are entitled to holiday pay, this will in most cases be paid in May. And that is quite a nice amount: at least 8 percent of your gross annual salary, according to central government. Where in the last two corona years it was often not spent on a trip to the sun, this is happening more often now. In fact, 60 percent spend their holiday pay on holidays, according to ING.

But how wise is it to book a holiday right away? ,,You first have to think about whether you need the money and whether it is smart to go on holiday. You can only spend money once. If it isn’t there, it isn’t there,” said budget coach Eef van Opdorp. ,,And if it doesn’t fit and you need the money elsewhere, that’s okay. You shouldn’t spend it because the neighbors are doing it too, you don’t want to spend the rest of the year because you’re short.”

Do you like to spend it on a holiday? Then it is wise to determine a budget in advance. “And stick to it,” says Van Opdorp, whose book Crazy about money appears this week. A clever and unexpected way to do that? “Give your children a budget and let them choose a trip,” says the budget coach. ,,Children from the age of ten are better at finding deals. They search faster and have a fresh perspective.”

And once you go: enjoy it to the fullest, says Van Opdorp. ,,Make a plan B if you think you need the money. I recently went on holiday in my own city. We hired a city guide, it was lovely. It’s about the experiences, and that’s not always necessary in Ibiza.”

According to the law, every employee is entitled to holiday pay. Or holiday allowance, as the central government calls it† Self-employed persons and entrepreneurs are excluded from this, but people with an AOW or other benefit do receive an amount, just like people who work through an employment agency.

If you are an employee, your collective labor agreement may state that you are not entitled to holiday pay. However, this is only possible if you earn at least 108 percent of the minimum wage. After all, that amounts to the same as the minimum wage plus the statutory minimum percentage for holiday allowance of 8 percent. Some employers also give the holiday allowance monthly, or it is part of an elective budget.

Most people will receive slightly more holiday pay into their account this year than a year earlier, calculated HR and salary service provider ADP earlier this month. For employees with an average income it comes down to about 4 euros, for employees who receive twice the average it is 8 euros. Only employees who earn less than the full-time minimum wage, for example part-timers or young people under 21, lose out: they lose one euro.

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