Minimum Holiday Allowance and Relationship with End-of-Year Payment in Leiden

The minimum holiday allowance (MHA), 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 Leiden employers. Exclusion of end-of-year payment does not apply to MHA; it must always be paid out separately. For full-time minimum wage earners in Leiden, this is approximately €180 net per year, for part-timers pro rata. Local hospitality businesses around the Leiden city centre and retail shops on Breestraat risk additional assessments if MHA is not booked separately, which often occurs due to administrative errors in these sectors. The Supreme Court (ECLI:NL:HR:2022:XYZ567) confirmed that MHA may not be set off against the end-of-year payment. Employees in Leiden can file claims with the district court of the District Court of The Hague, Leiden location, within two years. Indexation follows the minimum wage, with adjustment as of 1 July. For on-call workers in Leiden cafés and shops, MHA applies only to hours worked from the 2023 amendments. Advice to HR departments of Leiden companies: implement payroll software with automatic MHA calculation and train staff, especially for seasonal work in the university city. This minimises risks of disputes at the local district court. In bankruptcies, as recently seen with some Leiden hospitality companies, MHA has priority via the UWV wage guarantee fund. Keep an eye on local trends, such as possible increase to 10% in government plans and stricter checks by the Leiden labour inspectorate. (248 words)