This is how the average Dutch person spends their holiday money

YES. In May and June, most Dutch people receive their holiday pay. The only thing I think of when I hear ‘holiday pay’ is: Ibiza, sun, sea, beach, and shopping – but I'm probably not the only one. On top of your salary, you often receive a nice bonus: around 8% of your annual salary – love it. Where holiday pay was once intended for – you guessed it – vacation, it now ends up in all sorts of places. Still not sure how you're going to spend your bonus? No problem, I’ll help you: here’s how the average Dutch person spends their holiday pay.

Holiday pay: once for vacation, now for fixed expenses?

Okay okay, let’s start from the beginning. The Nibud regularly conducts research on holiday pay and how Dutch people spend it. In the last major study before corona (2019) – yes, I know, it feels like yesterday – it turned out that the majority of all Dutch people actually used their holiday pay for its intended purpose: vacation.

But there has been a visible shift for more than ten years: holiday pay is increasingly used for household expenses or to pay off debts. People with an income higher than average tend to save their holiday pay more often. Quite smart, because holiday pay can nicely supplement your buffer, and it’s generally not a bad idea to keep some money on hand. So, a little less sun, beach, and Ibiza. Nibud says it’s good for people to consider unexpected expenses. Are you still going on vacation but have no idea where to? No worries: here you’ll find the vacation that perfectly suits you (and is worth your holiday pay).

Just a bit about corona: say goodbye to vacation

Well, do you remember? When corona came around the corner? We shouldn’t think about it anymore, but we could hardly go to the supermarket, let alone go on vacation. Despite the fact that the change in spending your holiday pay had been happening since 2015, it suddenly made a big leap during corona. Traveling became almost impossible, and the idea of a relaxing beach vacation turned into: saving for later – or simply getting through the month. Not so glamorous, but understandable and actually quite smart. Good to know: This is how much you need to save each year to ever buy a house.

Some people have since completely stuck to that financial security. And others? They went – when it was possible again – completely wild. They took every flight to Italy they could get.

Inflation in the Netherlands is hitting hard

Phew: the corona crisis is now over. Less phew: the high inflation, on the other hand, is still a real thing. According to Nibud spokesperson Gabriëlla Bettonville, they see that many people nowadays use their holiday pay to catch up on payment arrears. Quite strange, isn’t it, that your holiday pay goes there… But well, also quite smart, because going on vacation with a big debt? You’d better not do that.

Boss's savings pot

Yup: Holiday pay feels like a bonus for many people, but it’s actually just a savings pot that your employer builds up for you. And many people find that a nice idea. Saving is very difficult for many people – yes, even for me – says Bettonville. Are you also bad at saving? Here’s how to save 5,000 euros in a year.

How much holiday pay does the average Dutch person receive?

Let’s say you earn an average annual salary of about €43,500. You get 8% holiday pay on that. Sounds nice, right? That amounts to about €3,480 gross. Whoa, wait, don’t start cheering just yet: Your holiday pay falls under ‘special income’. And that unfortunately means: an extra bit of tax - ugh. Special income is taxed at a special – and usually somewhat higher – rate than your regular salary. For people with an average income, that quickly amounts to about 49%. WHAT, that adds up, I was shocked myself.

Let’s do some math: from that €3,480, about €1,775 remains after tax. So that’s the amount that the average Dutch person gets deposited into their account net. No villa in Ibiza with the whole family, but enough to get away for a week, pay off part of your debts or payment arrears, spend a little extra on household expenses, or just save. Also nice. Also smart.

Briefly, everything in a row

• 43% of the Dutch spend their holiday pay on – yes – vacation
• 36% puts it in a savings account (good and smart, applause for yourself)
• 16% uses it for everyday expenses, such as groceries
• A smaller percentage pays off debts or falls behind on payments (also smart, but less sexy)

Men vs. women

Last but not least: There is also a noticeable difference between men and women. Men are more likely to throw their holiday pay into the big pile and do nothing special with it. Women are often busy planning their holiday pay early on, where is it going as soon as it hits the account? Women are often more engaged with it.

If you are single, you are most likely to put your holiday pay in a savings account. In 2015, 36% of singles did that, while only 24% used it for a vacation. Among couples, that percentage is much higher: 52% actually spent their holiday pay on a trip away.

Image: Instagram|Ninahouston