Year-End Payment and Thirteenth Month in Utrecht
A year-end payment or thirteenth month is an extra financial allowance, often paid in December. This is not a statutory obligation.
No Statutory Obligation
There is no statutory right to a thirteenth month in the Netherlands. However, the right to it may arise from:
- Your individual employment contract
- An applicable collective labour agreement (CAO)
- A long-standing custom within the organisation
Amount of the Payment
The amount of the payment may vary. It usually concerns a full monthly salary (thirteenth month) or a certain percentage of your annual income.
Pro Rata Payment for Short Employment Period
If you have not been employed for the entire year, for example due to commencement of employment or dismissal, you are often entitled to a partial payment based on the period worked.
Tax Rules
The year-end payment is taxed as regular wages. Due to special tax rates, the net amount may turn out lower than you might expect.
Legal basis: Employment contract, CAO
Local Information for Utrecht
For legal questions about year-end payments in Utrecht, you can go to the Juridisch Loket Utrecht at Catharijnesingel 55. In addition, the District Court of Midden-Nederland, located at Vrouwe Justitiaplein 1, handles labour disputes.
Frequently Asked Questions
Am I entitled to a thirteenth month?
No, this is not a statutory right. It depends on your employment contract, CAO or a fixed custom within your company. Consult your contract for clarity.
How is the amount of my year-end payment calculated?
This varies per situation. It can be a full monthly salary or a percentage of your annual salary, depending on the agreements in your contract or CAO.
What if I have not been employed for the entire year?
In that case, you are often entitled to a pro rata portion of the payment, based on the period you have worked. Check your contract for the exact rules.
How is tax levied on this payment?
The payment is regarded as wages and wage tax is withheld thereon. Due to progressive rates, the net amount may be lower than expected.
What to do if my employer does not pay?
If you are entitled to the payment but do not receive it, you can submit a written request. In case of persistent problems, you can seek legal assistance via the Juridisch Loket in Utrecht.