All-Inclusive Wage

Dutch courts currently generally allow an all-in wage – where the employer, among other things, pays the value of holidays to the employee monthly with the gross wage – provided that the requirements of transparency and comprehensibility are met. In any case, this means that the parties must include a provision regarding the all-in wage in the employment contract. In some cases, courts also require that the all-in wage follows from the payslip. However, the legal approach taken by Dutch courts seems to conflict with a ruling of the Court of Justice EU.

The employer's main consideration is the payment of wages for the employee's performance of work. Usually, the employer pays a gross monthly wage to the employee, from which the employer deducts payroll tax and contributions. Holiday allowance is usually paid once a year and the employee's wages are in principle continued during his/her holidays. However, some employers, especially in the case of on-call workers,