Payroll in the Netherlands is subject to stringent regulations, and the structure of Dutch payslips can be complex for those unfamiliar with the system. Both employees and employers benefit from understanding the payslip to ensure compliance, accurately interpret earnings, deductions, and contributions, and avoid potential payroll disputes.
In this blog, we provide an overview of the key components of a Dutch payslip to help you navigate its structure and purpose.
The Dutch Payslip
In the Netherlands, employers are legally required to provide employees with a payslip (loonstrook) for each pay period. Although formats may differ, the law mandates the inclusion of specific details. A Dutch payslip is typically organized into three main sections:
- Header Section – General information about the employer and employee.
- Middle Section – Breakdown of gross earnings, deductions, and contributions.
- Footer Section – Net salary, cumulative figures, and additional details.
Header Section of the Payslip
The top portion of a Dutch payslip contains essential information about the employer and employee. Common elements include:
- Employer Information: Name, address, and Chamber of Commerce (KvK) registration number.
- Employee Information: Name, address, date of birth, and payroll identification number.
- Payroll Period: The month or pay cycle covered by the payslip.
- Tax Information: Tax codes (loonheffing) and the employee’s tax status (such as whether the tax credit is applied).
- Pension Details: Information about the employee’s pension plan, if applicable.
- Working Hours and Contracts: Data on contractual hours, overtime, and leave adjustments during the payroll period.
Middle Section of the Payslip
This section details the earnings, deductions, and employer contributions. Key components include:
Gross Salary Components
- Base Salary (Bruto Loon): The agreed fixed monthly or hourly wage.
- Overtime Pay (Overuren): Compensation for hours worked beyond standard contractual obligations.
- Allowances (Toeslagen): Such as travel, meal, or shift allowances.
- Bonuses (Bonussen): Performance-related or annual bonuses, if any.
Deductions
Deductions on Dutch payslips include taxes and social insurance contributions:
- Income Tax (Inkomstenbelasting): Based on the employee’s tax bracket and taxable income.
- National Insurance Contributions (Volksverzekeringen): Covering benefits like old-age pensions (AOW), survivor benefits (ANW), and disability insurance (WIA).
Employer Contributions
The employer is responsible for additional contributions, which are detailed on the payslip for transparency:
- Health Insurance (Zorgverzekering): A contribution to the Dutch healthcare system.
- Unemployment Insurance (WW): Supporting employees in case of job loss.
- Pension Contributions (Pensioenpremies): Payments into occupational pension schemes.
Footer Section of the Payslip
The bottom section summarizes the final payroll figures and other cumulative data:
- Net Salary (Netto Loon): The take-home pay after taxes and deductions.
- Cumulative Totals: Year-to-date gross salary, tax payments, and contributions.
- Leave Balances (Vakantiedagen): An overview of accrued, used, and remaining vacation days.
- Other Notes: Any additional comments, such as one-off payments or adjustments.
Why Understanding the Payslip Matters
Decoding a Dutch payslip is essential for employees to ensure their pay is accurate and for employers to maintain compliance with Dutch payroll regulations. Misunderstandings can lead to disputes or errors, making clear and accurate payroll management a priority.
Explore More About Payroll in the Netherlands
For further insights and guidance on payroll in the Netherlands, explore our other blogs covering topics such as:
- Foreign Employer in the Netherlands
- WKR in the Netherlands
- Payroll updates in the Netherlands 2025
- The Dutch pension system
For additional resources, consult the Dutch Tax Authority (Belastingdienst) and the Dutch Employee Insurance Agency (UWV).
Need Assistance with Payroll in the Netherlands?
Internago specializes in payroll services across the European markets. From payroll outsourcing, payroll and HR Management to ensuring full compliance, we help you streamline your payroll processes so you can focus on your business goals.
Interested in learning more? Visit the Internago website or contact us directly at info@internago.com.