You’ve scored the job, filled out the paperwork, put in the working hours, and your hard-earned euros have landed in your Dutch bank account. Now it’s time to check your payslip for all those other nice benefits like vacation time, your pension, and perhaps your secondary benefits.
But wait! Sorry to roet in het eten gooien (throw soot in the food), but there’s a hurdle you’ll have to overcome first: Dutch payslips can be a pain in the butt to read.
Why? Your Dutch pay stub is full of confusing phrases, numbers, and long Nederlandse words that throw fear in the heart of even natives. But never fear: here’s what to know about your Dutch payslip — and how to read it like a pro.
We turn to the experts when it comes to all things about employment and recruitment in the Netherlands: Undutchables! We teamed up to write the ultimate explainer on those tricky Dutch payslips.
When and how do I receive a Dutch payslip?
If you’re employed in the Netherlands, your employer must give you a payslip (loonstrook) with your first salary or whenever something changes in wages or payroll taxes. Most employers typically give you a payslip at the end of each month.
Your pay stub may be delivered via email, through an internal system, or perhaps even on paper — although that’s less common in the age of technology. 👩🏼💻
Why should I read my Dutch payslip?
Money makes the world go round, pays for your brood, and lets you take nice vacations (hopefully). That’s why it’s important to check your Dutch payslip so you know:
Your gross and net salary (before and after tax)
Allowances and reimbursem*nts that you’re entitled to
How much holiday pay you have accrued
How much leave you are entitled to
Your payslips are also an important part of Dutch life: you’ll need to provide them if you rent or buy a house, apply for any kind of financing, or sometimes even if you sign a phone contract. These, and your employment contract, are proof that you earn your moolah.
Dutch payslip terminology breakdown
The time has come! Got your Dutch payslip in front of you? We’ll break this down into three easy sections: the top, middle, and bottom of your payslip.
A quick note first: we’ve dug and dug to find the most terms, but it’s possible your payslip uses a different structure or terminology. In that case, head on over to your HR department and they’ll be able to clear it all up for you!
Top of a Dutch payslip: personal, date, and employment details
All of your basic information belongs at the very top of your payslip — this typically doesn’t change month-to-month. Your and your company’s names and addresses will sit somewhere near the top.
Move your gaze and you’ll find more personal and factual information. Here’s a quick rundown:
Datum in dienst (Start date)
The start date of your contract with the company.
Geboortedatum (Date of birth)
Your date of birth (as shown on your ID)
Tabelkleur (Tax table colour)
This is determined by the tax office. White is for current employment, green is for past employment (for example, if you’re receiving a pension or unemployment benefit).
Minimumloon (Minimum wage)
The legal minimum wage which must be paid to the employee as determined by the government.
Personeelsnummer/Resourcenummer (Employee number)
The employee identification number your company or recruiter has assigned to you.
Jaarloon (Annual salary)
Your annual salary for the previous year. If you’ve just begun your job, this will be your starting salary calculated as an annual figure.
Bijzonder tarief % (Special tax percentage)
The tax rate on special wages like holiday pay, overtime, or bonuses.
Dagen tijdvak (Time period)
The period of time that the payslip represents.
Middle of a Dutch payslip: salary calculations
The middle of your Dutch payslip holds information more specific to the current period and how your payment has been divided.
Dagen gewerkt (Days worked)
The number of days the employee worked in the time period above.
Verloonde uren (Paid hours)
The number of hours the employee is paid for the time period.
Normale uren (Normal hours)
The total number of hours worked and your gross hourly rate.
The number of overtime hours worked and the hourly overtime rate if applicable.
Bruto (Gross wage)
Now we’re into the good stuff. Bruto is your gross salary from the payslip’s period added to your pension amount or other tax extras, like a company car allowance.
Werknemer verzekering (Wages for employees insurance)
This is the premium employers pay in case their employees suffer loss of income if they become unemployed, incapacitated for work or ill. These insurances are:
Unemployment Insurance Act (WW)
Disability Insurance Act (WAO)
Work and Income according to Capacity for Work Act (WIA)
Sickness Benefits Act (ZW)
Your employer may pass a portion of the insurance costs on to you, which will be reflected on your payslip (likely under WHK premie).
The amount of payroll tax and social security deducted from your gross salary.
Netto loon tijdvak (Net wages)
Net salary after tax deductions, but before additional reimbursem*nts and deductions.
Declaratie onkosten (Declared expenses)
Any costs you have claimed back from your employer, such as fuel, kilometres driven to visit clients, dinners while away, or the cost of using your phone for work purposes.
Reiskosten (Travel costs)
Your net travel expenses, such as taking the train to work (if your employer covers this cost).
Totaal Netto/Totalen (Total)
The total salary paid to you for the period (net).
Betalen (Paid)
The bank account details where your salary was or will be deposited.
IBAN (Account number)
Saldo oud (Old balance: any outstanding amount your employer already owed)
Bedrag (Amount)
Saldo nieuw (To be paid)
Cumulatief (Cumulative)
Your accumulated salary over the months of the year so far.
Bottom of a Dutch payslip: long-term calculations
At the bottom of your Dutch payslip, you’ll typically find all your long-term calculations. These can be:
Reservering (Balances reserved for later)
This section will cover different types of leave and allowances. You’ll likely see calculations for:
Opbouw (the amount earned in the payslip period)
Opname (any amounts you used in the payslip period)
Saldo (the balance of the hours you have left)
Kort verzuim in geld (Short term leave)
Total hours built for short-term leave, such as going to the dentist or the doctor.
Vakantiebijslag (Holiday allowance)
Paid to take a holiday? In the Netherlands, hell yeah! This section will show how much you have built towards your holiday pay which is paid out in May.
Vakantieuren wettelijk (Statutory holiday hours)
The total amount of hours built up for your holiday allowance. The minimum number you are entitled to each year is four times the number of working days per week. If you work full-time your minimum will be 20 days per year.
Hours built up toward non-statutory holiday days. These days are normally defined in your employee handbook or collective labour agreement. It differs per industry, so check with your HR department to find which ones apply to you.
SV/ZVW/WW/WAO Loon (Insurances salary)
The wages on which you must pay taxes and social security contributions.
Pensioengevend loon (Pension fund salary)
Your salary for pension purposes.
You did it! After receiving a payslip from your Dutch employer that looks like it was written by an over-enthusiastic three-year-old, you’ve cracked the code and deciphered the goods. Now the only thing that’s left to do is spend your hard-earned cash!
Not happy with your payslip — or your employer? Head on over to Undutchables and check out their current vacancies!
Want to know more about working in the Netherlands? Learn more about understanding your Dutch employment contract, speaking Dutch at work, and extra benefits you could be claiming from your Dutch company!
What confused you the most when you received your Dutch payslip? Tell us in the comments below!
Your payslip contains important information, including your payroll number, your gross and net pay, and normally your tax code. It's important to understand your payslip and how to make sure you're being paid the right amount.
You calculate the 'SV' wage by adding up all gross amounts, and then subtracting the amounts for pension, 'VUT' and 'spaarloon'. In this example the 'SV' wage therefore is € 500 - € 20 - € 10 = € 470.
By law, UK payslips must contain the following information: The total amount you've been paid before compulsory deductions have been made (your gross pay). The amounts of variable deductions taken from your gross pay, and what these deductions are for. These include things like tax and National Insurance (NI).
Here, Earnings = Basic Salary + Dearness Allowance + House Rent Allowance + Conveyance Allowance + Medical Allowance + Special Allowance. Given below is a simple example of a salary slip showing all the basic breakups under two heads, earnings and deductions.
The median gross expat salary in Amsterdam (2022) as reported by PayScale Inc is €51,000. Likewise, Numbeo lists an average net salary (2022) in Amsterdam of €3,620 per month (equivalent of €64,000 per year).
A 13th-month salary in The Netherlands is an extra paycheck that is paid in addition to an employee's annual salary that is usually equivalent to one month's pay.
Box 1 contains the amount of tax you owe on income from employment (including residential home ownership). For persons having reached the statutory retirement age, a reduced tax rate applies for incomes up to € 37,149 (2023).
The method to calculate your salary as per the 7th CPC is simple. The salaries are obtained by multiplying the existing basic pay by a factor of 2.57 and the figure so arrived will be added to all the applicable allowances such as Transport Allowance (TA), House Rent Allowance (HRA), Medical Allowance, etc.
Your pay stub contains three main sections: how much you are being paid, the taxes you are paying, and any other deductions that are being made. Pay attention to your gross, year-to-date, and net earnings. The deductions that relate to taxes are generally the most confusing, particularly those related to FICA.
Grade pay is the exact monetary compensation a person earns at a job that uses a pay grade system. This type of payment system is structured and preset, and it does not involve salary negotiation. Pay grade systems have multiple steps or levels, each of which has transparent requirements.
A tax code is usually made up of three or four numbers and one letter, for example 123L, and can be found on your payslip. The numbers reflect the Personal Allowance amount that you are entitled to in that tax year. You do not start paying Income Tax until you are earning over your Personal Allowance figure.
Ideally, they use a reversed calculation method where a percentage of the salary and CTC is taken. The basic pay is usually 40% of gross income or 50% of an individual's CTC. Basic salary = Gross pay- total allowances (medical insurance, HRA, DA, conveyance, etc.)
First, determine the total number of hours worked by multiplying the hours per week by the number of weeks in a year (52). Next, divide this number from the annual salary. For example, if an employee has a salary of $50,000 and works 40 hours per week, the hourly rate is $50,000/2,080 (40 x 52) = $24.04.
Employers NI: The amount of National Insurance your employer has paid on your earnings in this tax year. EE Pension to Date: The workplace pension payments you have contributed from your wages in this tax year. ER Pension To Date: The payments your employer has contributed to your workplace pension in this tax year.
Understanding your payslip. Pensionable Pay – 'P' or 'PENS' at the side of any payment indicates that it is pensionable. 'NP' at the side of any payment indicates that it is not pensionable.
T/N Indicates if payments are taxable (T) or nontaxable (N) Tax Basis Determines the way in which your tax is calculated E= Emergency, N=Normal, W=Week1, X=Exclusion Order. Tax Credits Your tax credits as determined by Revenue.
According to the Centraal Planbureau (CPB), in 2023, the median gross income for a person working in the Netherlands is 38.500 euros gross per year. A salary can vary greatly from the median income as it is influenced by age, sector, professional experience and hours worked.
Usually, you negotiate gross salaries. Not always easy to know how that translates into net value, especially if you are not used to the tax system in the Netherlands. To get a better feeling, use the Dutch Income Tax Calculator.
The 30% facility is available to employees who are recruited from outside the Netherlands to work here temporarily. If they satisfy conditions for the 30% facility, they are exempt from paying tax on up to 30% of their salary.
Effectively, the Netherlands is a conduit country that helps to funnel profits from high-tax countries to tax havens. Particularly the Dutch Special Purpose Entities attract income, often as interest and royalty payments, and pass it on, effectively untaxed, to tax havens.
The minimum number of vacation days in the Netherlands per year is four times the amount of days worked per week. Which is typically 20 days in case of a full-time employee. In the event of part-time employment, the number of leave hours is calculated proportionally.
The box 3 tax rate is assessed against a hypothetical yield. You are not taxed for capital gains or actual rental income. Instead, the Dutch tax office assumes that you enjoy a yield of up to 5.69% over your total asset value, irrespective if any actual gains are higher or lower(!).
As of 2024, there will be 2 rates in box 2 of the income tax return: A base rate of 24.5% for an income of up to €67,000. A high rate of 31% on any income higher than that.
For non-resident taxpayers, taxation in box 2 will only apply to a non-resident who holds a substantial interest in a Dutch-based company. The box 2 tax rate is 26.9% in 2023. Taxation in box 2 may apply to the aforementioned lucrative investments and could mean a tax saving.
An annual salary increment is spread across each salary payment throughout the year. For example, if you earn an annual salary of £40,000 and receive a three per cent increment for one particular year, you have about £1,200 extra spread across the year.
Social Security number of the pay stub does not match the borrower's Social Security number. Amount of income is not reasonable for the position held. The paystub from a major employer is handwritten rather than computer generated. There are inconsistencies in deductions when more than one check is present.
The GS-7 pay grade generally marks an entry-level position. GS-7 is usually the starting grade for scientist, engineers and other professions who are starting directly out of university or who otherwise have limited relevant experience.
A salary grade is a predetermined compensation level for a given position within an organization. The level is expressed through a salary range and typically the levels are set at each individual business entity. For example, the salary grade for mid-level management positions at ABC Inc.
Each grade has 10 step rates (steps 1-10) that are each worth approximately 3 percent of the employee's salary. Within-grade step increases are based on an acceptable level of performance and longevity (waiting periods of 1 year at steps 1-3, 2 years at steps 4-6, and 3 years at steps 7-9).
You pay 1/3 of the gross monthly wage per year from the first day of employment. To calculate the transition payment, you will need to calculate the gross monthly salary: Permanent contract: the gross hourly wage x the fixed number of hours per month.
This pay scale system is roughly equivalent to the GS grades between 4 and 15. SV grades are identified by the letters A-M, and each has a minimum and maximum rate; employees can be hired for a rate higher than the minimum if they have experience relevant to the job.
Earned Value Management. Schedule Variances. Schedule Variance (SV) indicates how much a project is ahead or behind schedule. It measures whether a project is on track by calculating actual progress against expected progress.
Typical severance packages offer one to two weeks of paid salary per year worked. Continuation of insurance benefits, assistance finding another job, and other perks can be negotiated. You usually have 21 days to accept a severance agreement, and once it's signed–seven days to change your mind.
You can always try to negotiate a severance package. You generally have 21 days to sign an agreement, so take your time to review all the provisions, to get a sense of what is standard in your industry in general and at that company in particular, and for those at your management level or with your years of experience.
Depending on the authorized cause of termination, separation pay should be equivalent to either one-half (1/2) month or one (1) month pay for every year of service, a fraction of at least six (6) months is considered one (1) whole year.
The salary scale structure for Pay Level 4 starts at Rs 25,500 and ends at Rs 81,100 The salary scale structure for Pay Level 5 starts at Rs 29,200 and ends at Rs 92,300.
Is the process of setting rates of pay, including increases in pay. Pay determination can be classified in a number of different ways, in terms of those involved in the process and the factors taken into account in deciding what pay should be.
President Joe Biden signed an executive order on Dec. 23, making the federal pay raise official for many civilian employees in 2023. As anticipated, General Schedule employees will get an across-the-board pay raise of 4.1% in 2023, plus a 0.5% locality pay adjustment, totaling to an average 4.6% pay increase.
Brutto(gross) salary is best defined as the sum of salary before the deduction of tax and insurance(s). Netto(net) salary is the result of initial pay including tax and other sorts of deductions made.
This is the amount you pay for your health insurance each month. You're likely have chosen a public health provider such as TK or AOK when you moved to Germany or before taking your first job.
Prepositional phrase. s.v. (plural s. vv.) sub verbo (plural: sub verbis) or sub voce (plural: sub vocibus), "under the word" (plural: "under the words");used to refer to an entry in a dictionary or encyclopedia.
Stroke Volume (SV) is the volume of blood in millilitres ejected from the each ventricle due to the contraction of the heart muscle which compresses these ventricles. SV is the difference between end diastolic volume (EDV) and end systolic volume (ESV).
Introduction: My name is Pres. Carey Rath, I am a faithful, funny, vast, joyous, lively, brave, glamorous person who loves writing and wants to share my knowledge and understanding with you.
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