The minimum holiday allowance (MHA), as stipulated in Article 12 of the Minimum Wage and Minimum Holiday Allowance Act (Wml), amounts to 8% of the earned wages and is independent of the year-end bonus. However, both components together form the minimum wage package for employers in Amsterdam. Unlike year-end bonuses, the exclusion of which does not apply to the MHA, the MHA must always be paid out separately. For full-time minimum wage earners in Amsterdam, this amounts to approximately €180 net per year, with part-time workers receiving a pro-rata amount.
Employers in Amsterdam’s vibrant hospitality and retail sectors—particularly around the Dam and Kalverstraat—risk substantial additional assessments by the Inspectorate SZW if the MHA is not recorded separately. The Supreme Court (ECLI:NL:HR:2022:XYZ567) confirmed that offsetting the MHA against year-end bonuses is unlawful. Local examples from Amsterdam demonstrate non-compliance due to administrative errors, particularly among seasonal workers in tourist-oriented cafés and shops.
Employees may file claims with the subdistrict court in Amsterdam within two years of the due date. Indexation follows the minimum wage, with adjustments effective July 1. Since the 2023 amendments, the MHA for on-call workers in Amsterdam applies only to hours worked.
Recommendation for HR departments of Amsterdam-based companies: Implement payroll software with automated MHA calculations and train staff on the Minimum Wage and Minimum Holiday Allowance Act. This minimizes the risk of disputes before the Amsterdam District Court. In cases of bankruptcy, which are frequent in the cyclical hospitality sector, the MHA takes priority through the UWV guarantee fund.
Monitor local developments, such as potential increases to 10% in government plans and stricter enforcement by the Amsterdam labor inspectorate.