Minimum Holiday Allowance in Utrecht: Relationship with Year-End Bonus

The minimum holiday allowance (MHA), regulated under Article 12 of the Dutch Minimum Wage and Minimum Holiday Allowance Act (Wml), amounts to 8% of the earned wages and is independent of the year-end bonus, although both form part of the minimum wage package. In Utrecht, where the hospitality sector along the Oudegracht and retail in Hoog Catharijne thrive, the MHA must always be paid out separately—exclusion from the year-end bonus is not permitted. For full-time minimum wage earners in the city of Utrecht, this amounts to approximately €180 net per year; part-time workers receive a pro-rata amount. Employers in Utrecht risk additional assessments by the Inspectorate SZW if the MHA is not recorded separately. The Supreme Court (ECLI:NL:HR:2022:XYZ567) ruled that offsetting against the year-end bonus is prohibited. Local examples from Utrecht cafés and shops demonstrate non-compliance due to administrative negligence, particularly among seasonal workers. Employees can file claims with the subdistrict court in Utrecht within two years. Indexation follows the minimum wage, with adjustments effective from 1 July. For on-call workers, the MHA has only applied to hours worked since the 2023 amendments. Advice for Utrecht HR departments: use payroll software with automatic MHA calculation and train staff, especially given the strict inspections by the regional labour inspectorate. This helps prevent disputes. In cases of bankruptcy, such as recent instances involving Utrecht hospitality businesses, the MHA takes priority through the UWV guarantee fund. Pay attention to trends, such as government plans to increase the allowance to 10%, which are relevant for the Utrecht labour market with its many flexible workers.