Autumn has arrived in the Netherlands, and while the summer holidays are behind us, it’s the perfect time for businesses to review their annual leave policies for next year. Employers must provide at least 20 days of holiday each year. However, most companies offer more to attract and retain top talent. On average, Dutch employees take about three weeks off annually, often all at once!
This guide will help you understand everything about annual leave, and the well-known holiday allowance in the Netherlands. You’ll also learn how to design a compliant and employee-friendly leave policy.
How Much Annual Leave Employees Get in the Netherlands
Every employee in the Netherlands earns the right to paid time off each year. As of 2024, employees receive at least four times their weekly working hours in annual leave. For instance, someone working 40 hours weekly gets 160 hours or 20 days off each year.
Most employers, however, go beyond this legal minimum. If your company follows a collective labour agreement (CAO), check its specific rules. Many CAOs require offering more than the standard paid leave entitlement.
How Annual Leave Accrues
Employees earn annual leave as they work or while on other types of paid time off, such as sick leave. If an employee takes unpaid leave, they usually stop accruing days. The main exceptions are long-term care leave (zorgverlof) and partner maternity leave (geboorteverlof voor partners).
Tracking accrued leave correctly is crucial for compliance and fairness. Businesses often use HR systems or payroll experts to ensure accurate tracking and avoid confusion.
How to Request and Approve Annual Leave
Each company should create a clear process for requesting annual leave. While Dutch law doesn’t prescribe a specific format, employers must make the process transparent and easy to follow.
Accurate record-keeping is essential. Companies need to track different types of time off, including statutory and extra days, since each may have a different expiry period. Partnering with HR professionals or using automated HR tools can make managing annual leave much easier.
What Is the Dutch Holiday Allowance (Vakantiegeld)?
A unique aspect of working in the Netherlands is the holiday allowance (vakantiegeld). Employers must pay at least 8% of an employee’s gross annual salary as this bonus. It’s usually paid in May or June to help fund summer holidays, though some businesses choose to spread payments throughout the year.
To understand how the holiday allowance is calculated and managed, explore our detailed guide on this topic.
Make Annual Leave Management Simple
Managing annual leave can be complex, but it’s vital for both compliance and employee happiness. Clear, fair, and well-structured policies create trust and promote a healthy work-life balance.
If your business needs help designing or updating a paid time off policy, our HR experts are ready to support you. Whether you need one compliant policy or a complete employee handbook, we can help you build a system that works.
Get in touch today to make annual leave management easier and more effective.
