How do I pay my social security contributions?
If you are employed in the Netherlands, then your employer will deduct your national insurance premiums from your salary each month and transfer them to the Belastingdienst. If you receive benefits, the premium will be deducted by the benefits agency. If you are self-employed or have a different income situation, you calculate and pay your national insurance via your annual tax return.
Employee insurance contributions are paid solely by the employer on your behalf; your employer is not allowed to deduct this premium from your salary. The employee insurance rates are set by the Dutch government each year in January and July.
Receiving social security in the Netherlands
In general, if you live and work in the Netherlands and contribute to the above-named social security schemes, then you are eligible to receive social security benefits. However, there are some exceptions:
- EU/EEA citizens typically cannot make any social security claims within the first three months of moving to the Netherlands, or before they start working.
- Non-EU citizens may apply for benefits, but it is possible that this has a negative impact on their eligibility for a residence permit. You should check the conditions of your residence permit and discuss with the Belastingdienst before applying.
State pension
Every working person in the Netherlands contributes to the state pension system (AOW), paying for the retirement benefits of those who have already reached retirement age. Once they retire, they receive a state pension proportional to the number of years they have spent working in the Netherlands. Find out more about calculating and receiving your AOW pension in the Netherlands on our dedicated page.
Health insurance
Although not strictly part of the social security system as outlined above, it’s worth mentioning that health insurance is also mandatory in the Netherlands, under the Health Care Insurance Act (ZVW), meaning that everybody needs to have at least basic health insurance to allow them to access the healthcare system.
Unemployment benefit (werkloosheidswet-uitkering)
If you lose your job but have been working in the Netherlands for at least 26 of the last 36 weeks, you might be eligible for unemployment benefit (werkloosheidswet-uitkering or WW uitkering). Unemployment benefits are designed to support you while you are unemployed, and are usually around 75% of your most recent pay.
Sickness benefit (ziektewet-uitkering)
If you become sick and unable to work, the Netherlands provides a safety net so that you can continue to receive an income. At first, you will receive sick pay from your employer; after two years, you will start receiving the sickness benefit from the UWV. Find out more about the sickness benefit in the Netherlands.
Disability benefit (WIA-uitkering)
If you have been ill for two years or longer, your right to a salary from your employer or sickness benefit ends. At this point, you may be eligible to receive the disability (WIA) benefit. Find out more about the two types of disability benefits in the Netherlands, and how to apply.
Maternity pay
If you are having a baby in the Netherlands, you are legally entitled to paid maternity leave during your pregnancy and after giving birth. On top of this, you can also apply for parental leave to spend more time with your newborn child.
Child benefits
To help parents cover the costs of raising a family, there are several types of child benefits in the Netherlands:
- Children’s allowance (kinderbijslag): To help cover the costs of raising children.
- Child benefit (kindgebonden budget): To cover costs such as children’s clothing, food and school expenses.
- Childcare benefit (kinderopvangtoeslag): To cover part of the cost of childcare.
Long-term care (WLZ)
The Netherlands also provides a comprehensive network of support to people who need ongoing care due to their age, a medical condition, or mental or physical disabilities. As a part of the national insurance scheme, the system is financed by contributions. Find out more about long-term care in the Netherlands.
Survivor benefit (Anw benefit)
If your partner or ex-partner dies, you may qualify for the Anw survivor benefit. If you have lost both of your parents, and you meet the requirements of the Anw scheme, you may receive an orphan’s benefit.
The amount you receive depends on your income and living situation.
To qualify for the survivor benefit as a partner, you must meet the following conditions:
- Your partner was insured under the Anw scheme.
- You have not yet reached state pension age.
- You are caring for a child under the age of 18 who lives with you, or you are at least 45% incapacitated for work.
You qualify for the Anw benefit as an ex-partner if your partner was obliged to pay maintenance to you before their death.
Benefits & allowances in the Netherlands
On top of these social security schemes, the Dutch government provides several kinds of financial contributions for citizens and residents in the Netherlands, mostly via the Belastingdienst. The benefit (toeslagen) system is designed to support people on low incomes by helping them cover basic living costs such as rent, health insurance, childcare and raising children.
Below is an overview of the different benefit schemes. The amount you receive for each benefit depends on your specific circumstances.
Healthcare allowance (zorgtoeslag)
Since health insurance in the Netherlands can be quite costly, the government offers the healthcare allowance to support those who need it. The amount you receive depends on your income.
Rent benefit (huurtoeslag)
Depending on where you live, renting a property in the Netherlands can also be pricey. However, people with lower incomes can apply for the rent benefit to help cover the cost of their rent.
Social assistance benefit (bijstandsuitkering)
If you do not have enough income or assets to live on, you might be eligible to receive social welfare, known in the Netherlands as the social assistance benefit (bijstandsuitkering). This benefit provides you with a minimum income, but may affect your right to remain in the Netherlands if you are living here on a residence permit.
Tax credits
Additionally, there are three tax credits that many expats could be eligible for:
- General tax credit (algemene heffingskorting): A tax break on your income tax. The amount you are entitled to depends on your income level.
- Labour tax credit (arbeidskorting): A tax break for every working person in the Netherlands.
- Income-related combination tax credit (IACK): A tax break for working parents with young children.
Am I entitled to benefits? How much can I receive?
Your financial situation is the main criterion for whether or not you qualify for government benefits. If you’re single and have no one else registered at your address, it’s simple. Only your own income (and sometimes your savings and investments) will be considered. If you have a toeslagpartner (tax/fiscal partner), you have to take their income into account as well.
If you have an income or pension from abroad this will be taken into consideration when determining your eligibility, so it’s important to declare this to the Dutch tax office.
To find out if you are entitled to benefits, and to learn how much you may be able to receive, it’s necessary to do an individual calculation, as there are too many determining factors to list all payment levels. On this page from the Belastingdienst you can fill in your information to get an indication on how much you will receive.
When and how to apply for Dutch benefits and allowances
Applications for benefits and allowances must be submitted in Dutch on the Mijn Toeslagen (my benefits) webpage using your DigiD. You can apply for the huurtoeslag, zorgtoeslag and kindgebonden budget for a specific year up until September 1 of the following year. For the kinderopvangtoeslag you must apply within three months of your child starting daycare.
If you apply for an extension to do your income tax return, then you also receive the same extension on applying for benefits - which usually gains you a couple of extra months.
You can find out more about applying for individual benefits in the dedicated guides above.
How long does the application process take?
After applying, the Belastingdienst processes your application and publishes a calculation of your benefit (berekening) on your Mijn Toeslagen account. Within five weeks you will see a payment overview (voorschotbeschikking) on your Mijn Toeslagen account. After another two weeks, the same payment overview will be sent to you by post.
Once your payment overview is in your Mijn Toeslagen account, your benefits will be paid into your bank account. Payments are usually made on the 20th of the month.
The total processing period takes roughly eight weeks. If you have not heard from the Belastingdienst within 13 weeks, you can submit a formal notice (formulier ingebrekestelling) which requires them to make a decision within two weeks.