Severance pay Netherlands 2026: calculate your transitievergoeding and check whether you are owed it
Estimate your statutory severance for 2026 with the official formula and maximum. Then check whether you are owed it, when it must be paid and what changes in a redundancy or a settlement agreement.
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Rules from the Civil Code and Rijksoverheid · Checked 30 September 2026
Short answer
Severance pay Netherlands, in short: when your employer ends your contract, or does not renew a fixed-term one, you are owed a transitievergoeding (transition payment) from your first day. It is one third of a monthly salary for every year you worked, plus a proportional part for the rest. The monthly salary includes holiday allowance and fixed bonuses. The maximum in 2026 is €102,000, or one year’s salary if that is higher. When you resign or agree to leave, the law does not require it.
Key facts for 2026
- 1/3 of a monthly salary for every year you worked, counted from your first day.
- €102,000 gross is the 2026 maximum, or 12 months of salary if that is higher.
- 1 month after your contract ends is the latest your employer must pay it.
- 6 months is the longest your employer may spread payment, with statutory interest.
- 3 months after the job ends is your deadline to go to court if it is not paid.
- 20 or more dismissals within 3 months in 1 work area make it a collective redundancy.
This is general information about Dutch law, not legal advice for your situation. Rules change; figures are for 2026. No rights can be derived from this text.
Calculator
Severance pay Netherlands calculator 2026
Enter your dates and pay to estimate the statutory transition payment for 2026.
Transition payment
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for – of service
- Monthly salary the law uses–
- For your whole years–
- For the rest of the last year–
- Capped at the maximum–
The rest of the last year is estimated from the days. Enter the pay for that period for the exact figure.
Estimate for 2026 under the Dutch Civil Code and the Rijksoverheid calculation rules, checked 30 September 2026. Your transition payment can differ, for example because of earlier contracts, variable pay or a CAO arrangement. Not legal advice.
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Offered a settlement agreement instead? See what to check before you sign.
Formula
How the transitievergoeding is calculated
You get one third of a monthly salary for every whole year, and a proportional part for the rest, from your first day (Civil Code, article 7:673, Rijksoverheid). You usually also get the transition payment when your employer decides your temporary contract is not renewed, not only when you are dismissed.
| Part of the monthly salary | How it counts |
|---|---|
| Gross salary | Hourly wage times the agreed hours a month |
| Holiday allowance and a fixed year-end bonus | What you would get in 12 months, divided by 12 |
| Fixed allowances, such as shift allowances | What you got in the last 12 months, divided by 12 |
| Variable pay, such as bonuses and overtime | What you got in the last 3 calendar years, divided by 36 |
Shorter contracts use a proportional period. Illness or leave does not lower it: the contract wage counts.
- The rest: gross pay over the remaining period, divided by the monthly salary, times one third of the monthly salary divided by 12. So 9 years and 5 days at €3,000, with €800 over the 5 days, gives €9,022.22.
- The maximum: €102,000 if your contract ends in 2026, or 12 months of salary if that is higher. It changes every 1 January.
- Earlier contracts: they count if there were no more than 6 months between them (Rijksoverheid).
- The definitions: Besluit loonbegrip.
Entitlement
When you are owed a transition payment
You are owed it when your employer dismisses you or does not renew your contract, and when you leave because of your employer’s serious misconduct (Rijksoverheid).
- Not owed if you resign or refuse a renewal, after your own serious misconduct, at state pension age, if you are under 18 and worked 12 hours a week or less, in a bankruptcy, or when a CAO gives another provision for a redundancy.
- A new contract: none if your employer offers one before the end that starts within 6 months and can be ended early.
- Serious misconduct by your employer: the court can award extra compensation on top.
- Your own misconduct: the court can still award it if refusing would be unacceptable (Civil Code).
Payment
Payment, deductions and tax
Your employer must pay the transition payment at the latest within 1 month after your contract ends (Rijksoverheid).
- In instalments: only if paying at once would harm the business, over at most 6 months, with statutory interest from 1 month after the end.
- Not paid: you can go to court within 3 months after your job ends.
- Deductions: costs of training or outplacement aimed at a new job, made because of the dismissal and in consultation with you (Rijksoverheid).
- Tax: it is taxed and counts as income; your employer uses the table for special payments (Belastingdienst).
Redundancy
Redundancy and collective redundancy
In a redundancy for business-economic reasons, the reflection principle decides who goes first (Rijksoverheid).
- First: hired-in staff such as agency workers and freelancers, then employees past state pension age, on-call workers and fixed-term contracts with 26 weeks or less to run.
- Then by age group: 15 to 25, 25 to 35, 35 to 45, 45 to 55, and 55 and over; in each group the person hired last goes first.
- Collective redundancy: 20 or more dismissals within 3 months in 1 work area (Rijksoverheid). The employer notifies UWV and the unions first, consults them and the works council, and waits 1 month unless the unions agree in writing (UWV).
- Your notice: see notice periods.
Settlement
Settlement agreements and severance
If you agree to leave, the law does not require a transition payment, so any severance must be in the settlement agreement (business.gov.nl).
- Check the wording: an agreement that says you resigned when you did not can cost you unemployment benefit, and your employer should respect the notice period (Rijksoverheid).
- Take your time: read about the 14-day reflection period and our settlement agreement guide.
- Just dismissed? See what to do first.
Keep reading
Related guides
More on dismissal and leaving a job in the Netherlands.
Settlement agreement
What to check before you sign a VSO.
DismissalThe 14-day reflection period
How to undo a settlement agreement in time.
DismissalNotice periods
How much notice your employer must give.
LeaveSick leave
Dismissal protection during illness.
DismissalChallenge a dismissal
The deadline to act and how to use it.
EmploymentEmployment law hub
All our guides for employees in the Netherlands.
FAQ
Frequently asked questions
How much severance pay do you get in the Netherlands?
The statutory transition payment is one third of your monthly salary for every year you worked, plus a proportional part for the rest. The monthly salary includes holiday allowance, fixed bonuses and averaged variable pay. In 2026 it is capped at €102,000, or one year of salary if that is higher. A settlement agreement can include a different severance payment.
How is the transitievergoeding calculated?
Take one third of the monthly salary for each whole year. For the rest, divide the gross pay over that remaining period by the monthly salary and multiply by one third of the monthly salary divided by 12. Rijksoverheid’s example: 9 years and 5 days at €3,000 a month, with €800 earned in those 5 days, gives €9,022.22.
Do I get a transition payment if my fixed-term contract is not renewed?
Yes, when your employer decides not to renew it. There is no payment if you refuse the renewal yourself, or if before the end your employer offers a new contract that starts within 6 months and can be ended early. Earlier contracts with the same employer count if there were no more than 6 months between them.
Do I get severance pay if I resign in the Netherlands?
No, not by law. You only get a transition payment after resigning if serious misconduct by your employer was the reason. In that case the subdistrict court can also award extra compensation on top of the transition payment. If you agree to leave through a settlement agreement, put any severance in writing.
Do I get a transition payment after 2 years of illness?
Yes. If your employer dismisses you after long-term illness, the transition payment covers the whole period you were employed, including the time you were ill. It is calculated on the gross wage in your contract, even if you were paid less during the illness or leave. The usual exceptions, such as bankruptcy, still apply.
When must my employer pay the transition payment?
At the latest within 1 month after your contract ends, often with your last salary. If paying at once would harm the business, your employer may pay in instalments over at most 6 months, with statutory interest from 1 month after the end of the contract. If it is not paid, you can go to court within 3 months of the end.
Is severance pay taxed in the Netherlands?
Yes. You pay tax on the transition payment, and it counts as income, which can affect benefits such as allowances. Your employer withholds tax on it with the Belastingdienst table for special payments, the same table used for holiday allowance and end-of-year bonuses. Your income tax return settles the final amount.
What is a collective redundancy in the Netherlands?
It is a collective redundancy when 20 or more employees in 1 work area lose their jobs within 3 months, whether through UWV, the court or mutual agreement. The employer must notify UWV and the unions in advance and consult them. A 1-month waiting period then applies, unless the unions agree in writing to the dismissals.
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Official sources, checked 30 September 2026
- Burgerlijk Wetboek Book 7, article 7:673 (in Dutch)
- Rijksoverheid: how high is the transition payment? (in Dutch)
- Rijksoverheid: transition payment when a fixed-term contract is not renewed (in Dutch)
- Besluit loonbegrip vergoeding aanzegtermijn en transitievergoeding (in Dutch)
- Rijksoverheid: do I have a right to a transition payment? (in Dutch)
- Belastingdienst: Handboek Loonheffingen 2026, section 9.3.6 (PDF, in Dutch)
- Rijksoverheid: the reflection principle in redundancies (in Dutch)
- Rijksoverheid: collective redundancy (in Dutch)
- UWV: collective redundancy, notification and rules (in Dutch)
- Business.gov.nl: transition payment after dismissal
- Rijksoverheid: when does my employment contract end? (in Dutch)
Final notes and legal disclaimer
- This article provides general information and is not tailored to your personal circumstances.
- It does not cover all situations, exceptions, or recent legal changes.
- Reading this article does not create a lawyer-client relationship with findlawyer.nl or any associated entity.
- No guarantee is given that this information is complete, accurate, or up to date.
- No rights can be derived from this article.
- For decisions about your severance pay or dismissal, or your specific situation, always consult a qualified professional.
FindLawyer is a lawyer-matching and case-preparation service. Legal advice comes from the independent lawyer.