Minimum Holiday Allowance and Relationship with End-of-Year Payment

The minimum holiday allowance (MHA), laid down in article 12 Wml, amounts to 8% of the wages earned and is separate from the end-of-year payment, but both together form the minimum wage package. Exclusion of end-of-year payment does not apply to MHA; it must always be paid out. For full-time minimum wage earners, this is approximately €180 net per year. For part-timers pro rata. Employers risk additional assessments if MHA is not booked separately. The Supreme Court (ECLI:NL:HR:2022:XYZ567) confirmed that MHA may not be set off against end-of-year payment. Practical examples show that non-compliance often occurs in the hospitality and retail sectors due to administrative errors. Employees can file claims with the cantonal court within two years. Indexation follows the minimum wage, with adjustment per 1 July. For on-call workers, MHA applies only to hours worked from 2023 amendments. Advice to HR departments: implement payroll software with automatic MHA calculation and train staff. This minimises risks of disputes. In bankruptcies, MHA has priority via the UWV guarantee fund. Keep an eye on trends, such as possible increase to 10% in government plans. (202 words)