30% of ruling: please explain

Hi and welcome to the Forum.

From some notes I made from some earlier research I did for somebody; I'm not a financial advisor.

Parts of your potential salary that qualify under the 30% rule are:

the agreed monthly salary
holiday allowance
bonuses

There was some other stuff, but I didn't understand it and seemed pretty obscure to me.

With regards to how much Holiday Pay; it's paid on your salary before anything else happens that may increase it (for example, the 30% ruling), so it's paid on 70% of your enhanced salary.

I'd recommend that you speak to your potential employer's HR department regarding this; they must have dealt with these issues in the past.  Further, if you have a complicated tax history, then speak to a financial advisor to make sure you make the best choices you can.

At the top of the page is a link to our Handy Tools section, within which is a business directory where businesses advertise their services, included in there are financial advisors; this link will take you straight there.

If you have any further specific questions, please come back to us, but I emphasise, as far as I'm aware, none of the Expat Team are financial advisors.

Hope this helps.

Cynic
Expat Team

Hi Cynic,

So just make it simple: I can count 8% holiday allowance to the gross amount and apply for 30% of ruling?

Thanks

That's my understanding.  You need to understand the origin of "holiday pay"; it's your money,  Historically, Holland used to take summer holidays in regional groups (known as the Bouwvakantie); to make sure that people had the money to go on holiday, an extra 13th month was invented as far as salary/payroll was concerned, so they took your annual salary, divided into 13, you got paid monthly 1/13 of your annual salary, then got the extra month in time for the summer holiday (there were variations on that theme).  More recently, as Christmas became more of a feature, some groups have opted to take the extra month in 2 parts 50/50, 1 summer, 1 Christmas.

Bouvakantie still goes on, although IMO, it's not such a big thing as more non-Dutch companies and people began to influence society.