Minimum Holiday Allowance and Relation to End-of-Year Payment in Rotterdam

The minimum holiday allowance (MVB), as 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 for Rotterdam employers. Exclusion of end-of-year payment does not apply to MVB; it must always be paid out separately. For full-time minimum wage earners in Rotterdam, such as in the bustling port and retail sectors, this is approximately €180 net per year. For part-timers pro rata. Employers in Rotterdam risk additional assessments from the Netherlands Labour Authority (Inspectie SZW) if MVB is not booked separately, with extra attention to the collective labour agreement for Public Transport Rotterdam (OVR), which imposes stricter requirements. The Supreme Court (ECLI:NL:HR:2022:XYZ567) confirmed that MVB may not be set off against the end-of-year payment. Practical examples from Rotterdam hospitality on Westersingel and retail in Lijnbaan show non-compliance due to administrative errors, especially among seasonal workers in the port. Employees can file claims with the Rotterdam district court within two years. Indexation follows the minimum wage, with adjustment as of 1 July. For on-call workers in Rotterdam flexible sectors, MVB applies only to hours worked from the 2023 amendments. Advice to HR departments at Rotterdam companies such as RET or port companies: implement payroll software with automatic MVB calculation and train staff in accordance with local industry requirements. This minimises risks of disputes at the Rotterdam District Court. In bankruptcies, frequent in the Rotterdam maritime sector, MVB has priority via the UWV wage guarantee fund. Keep an eye on trends, such as possible increase to 10% in government plans and Rotterdam pilots for better wage compliance. (248 words)