Social Security - General Organisation

As soon as you start work in the Netherlands, you will automatically begin making payments into the Dutch social security system. The Dutch social security system is one of the most comprehensive in the EU. Anyone legally resident in the Netherlands who lacks the means to support himself or herself owing to long-term disability or unemployment can claim benefit from the Dutch state.

The Ministry of Social Affairs and Employment is responsible for the relevant legislation. Most social security contributions are deducted automatically from your salary. In the case of so-called employee insurance, both you and your employer pay contributions. Below are the contribution percentages valid as at 1 January 2005:

Type of insurance employer employee total max. contrib. income

• Old-age pension: 17.90 17.90 30 357 per annum
• Survivors' benefit: 1.25 1.25 Idem
• Exceptional medical expenses: 13.45 13.45 Idem
• Invalidity benefit: 5.60 -- 5.60 167 per day
• Invalidity benefit computation contribution: 1.67 -- 1.67 Idem
• Redundancy pay insurance: 1.75 -- 1.75 167 per day
• Unemployment insurance: 2.45 5.85 8.30 Idem
• Compulsory health insurance: 6.75 1.45 8.20 114 per day

1. Average for businesses; for claimants 1.89 percent.
2. Marginal contribution percentage for general unemployment fund from contribution-exempt amount of €58 per day.
3. The pay limit is €33,000 for people under the age of 65 and €21,000 for people aged 65 and over. A nominal contribution is also payable under the compulsory health insurance scheme. The amount of this contribution is determined independently by the health insurance funds. The average nominal compulsory health insurance computation contribution is €71.84 per adult per annum. No contribution is payable for children who are also insured. The compulsory health insurance contribution on old-age pension is 8.20 percent, and 6.20 percent on supplementary pension.

Source: European Union
© European Communities, 1995-2006
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