The rules on severance pay in detail

Statutory termination pay in the Netherlands is available if a contract lasted two or more years and there has been a termination at the initiative of the employer.
The calculation works as follows:

  • for the first 120 months of the employment: a sixth of a month’s salary for each period of six months;
  • for any subsequent employment: a quarter of a month’s salary for each period of six months;
  • compensation is capped at EUR 81,000 gross, or a year’s salary, whichever is the higher;
  • until 1 January 2020 an additional payment is available for employees over 50 at the moment of termination and employed for at least 120 months;
  • monthly salary includes all fixed salary elements, including the average bonus over the three years preceding the year of dismissal;
  • additional reasonable compensation is possible in the case of  the seriously culpable behaviour of the employer.
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Author: Bronsgeest Deur

Date: December 2018


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