For many pensioners, May is not just a month, but the month in which vacation pay is deposited. That feels a bit like a gift, even if it's just part of the benefit they're entitled to. The big question, of course, is: how much will it be this year? And perhaps more importantly: what remains after the tax authorities have kindly stopped by?
Increase in vacation pay in 2025
The vacation pay is linked to the state pension benefit and increases annually. In 2025, AOW people can expect a higher amount than in 2024. Single people will receive the most: their vacation pay will increase from €936 to €1032, a difference of almost €100.
For cohabiting or married AOW people, the amount is somewhat lower. They still received €668 in 2024, but this will increase to €737 in 2025, because the AOW benefit for partners is lower than that for singles.
A special group of AOW people is those who receive an allowance, intended for people with a partner who has little or no income. They can count on €1475 vacation pay in 2025, a lot more than the other groups.
How much do you have net left over?
It sounds nice, that increase, but ultimately it's about the amount that is credited to the account. And as always, the tax authorities also have a finger in the pie there.
Of the €1032 vacation allowance for singles, around €750 net remains. This is less for cohabitants and married AOW people: they are estimated to have around €540 left over from their €737 gross vacation allowance after tax. Exactly how much is deducted depends on total income and applicable tax rates.
Extra vacation pay via pension funds
Many pensioners receive a supplementary pension in addition to their state pension, and some pension funds also pay vacation pay. The way in which this is done varies by fund: some pay it out at once in May, while others process it monthly as part of the pension benefit. This can cause the total vacation pay to each person to vary considerably.
Abroad? Then possibly less vacation pay
Not everyone gets the full amount. Those who have lived outside the Netherlands for a large part of their life will receive a lower state pension benefit and therefore less vacation pay. For each missed insurance year, 2% of the state pension is deducted. This can add up considerably for people who only came to the Netherlands later in life or who lived abroad for a period of time.
For those who fall below the social minimum as a result, there is the option to apply for an AIO supplement. This is an allowance from the government, but the vacation pay remains lower for this group than for people with a full state pension benefit.
Nice stroke of luck, but pay attention to the tax
The increase in vacation pay in 2025 is good news for AOW people. However, it is wise not to spend everything on a luxury vacation right away, because after tax, there is less left than it seems. Anyway, even with a few tens less, it's still a nice extra — even if it's just to eat out a few extra times or just sit on a terrace. Because let's be honest: in the end, that also feels like a vacation.