In the month of May you will receive an extra payment of your holiday pay, holiday allowance and holiday allowance in 2022 and 2023. How much and how much net after tax, is it less net again? The holiday pay is 8% of your gross annual income, to be paid no later than June 30. The net amount is much less now that the general tax credit is income-related. View the payment dates for your holiday pay for 2022 and 2023, you will also receive holiday benefit with your AOW. Not only the tax and tax authorities, the banks also know what to do with your holiday pay and allowance. You pay a lot of tax on the holiday pay via the special rate. The question is also what you will do with your holiday pay. After all, it always involves a fair amount of extra money. A total of 25 billion in holiday allowance is available in the month of May and that is of course worth it. At least savers have a choice again.
- Holiday pay and the tax authorities
- Holiday and how much holiday pay for 2022, net lower holiday pay?
- Payment dates for holiday allowance 2023, holiday allowance 2023
- Still borrow despite extra holiday pay
- Repay the loan with holiday pay
- Tax authorities, tax and payroll tax on holiday pay: the special rate
- Banks and holiday pay
- Holiday pay promotions 2023 from banks
- Top 5 savings goals
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Holiday pay and the tax authorities
The general tax credit is income-related, which means that if you earn more than roughly 20,000 euros, your general tax credit will be reduced. If you receive extra income (holiday pay is extra income), this may mean an additional tax from the Tax Authorities in 2021 and 2022. The consequences can also be significant for your net holiday pay due to the high marginal tax burden. You have less left over. In most cases, the amounts are 40 euros to 270 euros net less, which is 4% to 9% less net holiday pay. This leveling does not take place via the tax rates, but via your extra income. In addition, the holiday pay is simply an additional source of income for the Tax Authorities.
Holiday and how much holiday pay for 2022, net lower holiday pay?
Some employers believe that the holiday allowance of 8% on the annual income you receive in the month of May is actually outdated. Consumers naturally think differently about this, because gross holiday pay still means an extra monthly income. Even if you are on sick leave, you are entitled to holiday pay. Many are waiting for this extra money. Most people do four things with it:
- Have a nice holiday.
- Use part of it to pay off debts.
- Save at a high interest rate.
- Buy something nice with it.
Calculation example for 2022 holiday pay and tax
Suppose your annual income is 19,000 euros gross, then that, including holiday pay, is equal to 20,500 euros gross. In any case, the net amount in the first tax bracket in 2021 is no less than in 2020 due to the new 2022 income tax, tax rates and brackets. In 2023, the payment could be slightly better, because the tax in the first tax bracket will be reduced slightly.
Payment dates for holiday allowance 2023, holiday allowance 2023
In 2023, the regular payment dates if you receive benefits (AOW, WAO, WW, social assistance, Wajong):
- State pension: May 23, 2023;
- WAO: May 23, 2023;
- WW: May 16, 2023;
- IOAW: May 16, 2023;
- IOW: May 16, 2023;
- Social assistance: depending on the municipality in which you live, this is May or June;
- Wajong: May 23, 2023.
Still borrow despite extra holiday pay
Remarkably, extra holiday pay also leads to extra borrowing for quite a few people. The holiday allowance is often not enough to pay for the extra purchases, so the difference is borrowed.
Repay the loan with holiday pay
But many use part of the holiday pay to pay off their loans or overdrafts at the bank. Sensible.
Tax authorities, tax and payroll tax on holiday pay: the special rate
The holiday pay is taxed at the so-called special rate, which is probably a lot higher than what you normally pay in income tax. The normal payroll tax rate is between 0% and 49.5%. Depending on the level of your income, the rates increase. The holiday allowance is regularly settled at a special rate of 49.5%. The settlement percentage ensures that you have less net income than expected.
Banks and holiday pay
But there are also other privateers on the coast. This year too, approximately 25 billion euros in holiday pay will be deposited into the accounts. Money that of course also arouses the interest of banks. Banks therefore regularly come up with promotions during the holiday period to further stimulate saving and consumers are happy to respond to this. Often the holiday has already been paid for and the holiday pay is such that there is also some left for the savings account.
Holiday pay promotions 2023 from banks
Every year we have to wait and see what actions banks will come up with. It is often a promotion where you receive extra interest if you deposit extra money into a savings account. ABN AMRO sometimes adds a lottery to this. When interest rates are low, actions will be more focused on additional investments or paying off debts. This is expected to be different in 2023 due to rising interest rates. Saving is a bit out due to the low interest rates and investing is in. Investing also earns the banks a nice commission.
Top 5 savings goals
ABN AMRO has conducted research on what you spend your holiday money on and this yields a top 5 savings goals:
- A beautiful holiday (whether or not in the Netherlands).
- A new car.
- Unexpected costs.
- Purchasing a dream house.
- The study of the children.
This list will also be valid in 2023.
However, there will be further actions in 2023, because an extra 25 billion is a lot of money, which many will know what to do with. If interest rates remain low, you can expect actions when you invest.
- General tax credit 2021
- Special wage tax rate
- Income tax 2022 & tax rates and brackets