Payslip in the Netherlands 2025 – Understanding Dutch Salary Slips

Moving to the Netherlands brings a host of new experiences, from cycling along picturesque canals to mastering the art of direct communication. Yet, few things can be as confusing as your first Dutch payslip.

However, that single document holds the key to your financial life here. It is more than just a record of payment. It’s a detailed map of your rights, responsibilities, and the social welfare system you are now a part of. This guide will demystify your payslip in the Netherlands, thereby helping you understand your take-home pay calculation.

What is a payslip?

A payslip (in Dutch often called a payslip or loonstaat) is a document your employer gives you each time you’re paid. It shows:

• Your gross salary before deductions.
• Deductions such as tax & social security.
• And your net salary , which is what lands in your bank.

In short, the payslip meaning is all about transparency. It’s proof of earnings, deductions paid to the tax authority (Tax Authorities), and your contributions to social insurance schemes.

Knowing what a salary slip in the Netherlands contains matters for budgeting, housing applications, and tax returns. For expats , it is also the essential proof of income needed for renting an apartment and securing a visa or residency permit.

Do you have doubts about understanding your payslip? As your Employer of Record (EOR) in the Netherlands, we provide umbrella company services for independent professionals—including contractors, self-employed, and the self-employed. We act as your official employer, handling client invoicing, local taxes, visa arrangements, and health insurance, so you can focus on your work without worrying about compliance.

Dutch Payslip explained: The key elements

A Dutch payslip is notoriously detailed. While the layout can vary slightly between companies and payroll providers, most will contain the following core sections. Here’s a basic overview of what to expect:

• Personal Details (Persoonsgegevens): This includes your full name, address, date of birth, and your citizen service number (BSN). That’s your key identifier for all government and administrative matters.
• Employer Details (Werkgeversgegevens): The name, address, and bank details of your company.
• Period and Payment Date (Periode and Betaaldatum): The specific time period the payment covers and the date the money will be transferred.
• Gross Salary (Bruto salaris): Your total earnings before any deductions. This may be broken down into base salary, overtime, bonuses, allowances (like for travel or internet), and commissions.
• Deductions (Afhoudingen):
  • Loonheffing: This is a combined deduction that includes income tax and your national insurance contributions. It is the largest deduction on your slip.
  • Social Security Contributions: These are premiums for schemes like the state pension (AOW), unemployment benefits (WW), and long-term disability insurance (WIA).
• Net Salary (Nettosalaris): This is your ‘take-home pay’ after all deductions have been subtracted from your gross salary.
• Year-to-Date Totals (Jaartotalen): Crucially, your payslip will also show the cumulative totals of your gross income, payroll taxes paid, and other contributions for the entire calendar year so far. This is invaluable for tracking your financial position.

Difference between gross and net salary

This is the most fundamental financial concept to grasp, and the one that causes the most initial shock. The difference between these two figures is often referred to as the ‘tax wedge’.

• Gross Salary: This is the total contractual amount you agree upon with your employer. It is your salary before the state takes its share for taxes and social security. When you discuss a new job offer, the figure quoted is almost always the gross annual salary.
• Net Salary: This is the actual amount that is deposited into your bank account. It is the gross salary minus all mandatory deductions. Consider using our payroll services in the Netherlands for further help in understanding your net salary.

The gap between the two can be significant in the Netherlands due to its progressive tax system and social security approach. While it might be startling to see a large portion of your earnings deducted, these contributions fund the country’s renowned public services. That includes its healthcare system, infrastructure, and social safety nets.

Taxes and mandatory contributions

The deductions on your salary statement in the Netherlands are not arbitrary. They are carefully calculated contributions to the Dutch state. The main ones are managed by the Dutch Tax and Customs Administration (Belastingdienst).

• Income tax: The Netherlands uses a progressive tax system with two brackets for 2025. You pay a lower rate on income up to a certain threshold and a higher rate on everything above it. Furthermore, your employer calculates and withholds this tax for you each month through the loonheffing.
• National insurance contributions: These are compulsory premiums that every resident pays, which entitle them to state benefits. The main ones are the state pension scheme, survivor benefits for partners and children, and care for those with chronic illnesses or disabilities.
• Employee insurance contributions: These are premiums paid to protect you as an employee. It includes unemployment insurance and income if you become partially or fully disabled after two years of illness.
• Pension contributions: Most employees in the Netherlands are enrolled in a company pension scheme, which is a separate deduction from their gross salary. This is a crucial part of your long-term financial planning.

Vakantiegeld and other additional payments

One of the most delightful features of a Dutch employment contract is the vakantiegeld, or holiday allowance. This is a mandatory additional payment from your employer, equivalent to at least 8% of your gross annual salary. Its purpose is to provide you with extra funds to truly relax and enjoy your holiday.

On your monthly payslip details, you will typically see a small accumulation of this allowance. It is usually paid out in one lump sum each year, most commonly in May. For example, if your gross annual salary is €50,000, you can expect a vakantiegeld payment of at least €4,000 (minus tax) in the spring.

Other common additional payments include:

• Eindejaarsuitkering: A year-end bonus, which is often equivalent to a 13th month’s salary.
• Travel Allowance (Reiskostenvergoeding): A tax-free allowance to cover your commute to and from work. It’s up to a certain distance and maximum amount set by the government.
• Home Office Allowance (Thuiswerkvergoeding): A small tax-free contribution to cover costs like electricity and internet if you work from home.

Understand your payslips with our support

Understanding your payslip in the Netherlands is a vital step towards financial confidence and stability. It moves from being an incomprehensible statement to a transparent record of your income, deductions, and social contributions once you know what to look for.

But if you’re a freelancer, remote worker, or contractor in the Netherlands, you may not receive a payslip at all—unless you are employed through an intermediary such as an Employer of Record (EOR).

As your Employer of Record in the Netherlands, we act as your official employer and provide a fully compliant employment solution for independent professionals, so you can enjoy the freedom of independent work without the legal and administrative burdens of setting up your own business in the Netherlands. Contact us to learn how we can support you.

Frequently Asked Questions

I think there’s a mistake on my payslip. What should I do?

Your first point of contact should always be your company’s HR department or payroll administrator. They can clarify calculations and correct any errors in the following pay period if necessary. The Dutch Employee Insurance Agency (UWV) is also a key resource for questions about employee rights and insurance.

Why is my net pay different in some months?

This is perfectly normal. It can happen if you receive your vakantiegeld or a bonus, if your tax credits change, or if you hit a new income tax threshold within the tax year. The year-to-date totals on your slip are the best way to track the overall picture.

What is ‘loonheffingskorting’ and how do I apply for it?

Loonheffingskorting (wage tax credit) is a tax discount that reduces the amount of income tax you pay. If you have only one job in the Netherlands, your employer will usually apply it automatically.

You must not apply it to multiple employers, as this will result in a significant tax bill later. You can indicate this on your tax return.

Are all the deductions on my payslip mandatory?

The core deductions for income tax and national insurance are mandatory for all employees. However, other deductions, such as for a company pension scheme or a collective health insurance, may be optional or dependent on your specific employment agreement.

How does my payslip relate to my annual tax return?

Your monthly payslip is a preview of your annual tax position. The cumulative taxes you have paid throughout the year are reported to the tax office. When you file your annual income tax return, you are essentially doing a final reconciliation.

You may get a refund if you overpaid, or you may have to pay more if you underpaid.