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🇳🇱Netherlands Severance Pay Calculator

Calculate Dutch transition compensation (Transitievergoeding): 1/3 monthly wage per year of service, day pro-rating, and the statutory ceiling.

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Netherlands Severance Framework

Wet werk en zekerheid (Transitievergoeding) • Currency: EUR ($)

Employment & Wage Parameters

$
$500$25,000
yrs
0 yrs40 yrs
mos
0 mos11 mos
$
$0$50,000
days
0 days45 days
Estimated Net Severance Take-Home
$4,425
Gross Total$7,020
Est. Taxes$2,595
Effective Tax37%
Applied Statutory Calculation Formula:

1/3 × Monthly Wage (€4,212 incl. 8% vakantiegeld) × 5.00 years

Take-Home$4K

Severance Package Distribution

Net Take-Home63%
$4,425
Withheld Taxes37%
$2,595

Statutory Severance Itemized BreakdownTotal Service: 60 continuous months

Calculation Base Monthly WageGross salary + 8% mandatory vakantiegeld
$4,212
Statutory Transition Compensation (Transitievergoeding)1/3 month per service year (capped at €102,000)
$7,020
Estimated Box 1 Wage Withholding TaxTaxed as wage from prior employment (Groene tabel)
$2,595

Netherlands Statutory Termination Law: Wet werk en zekerheid (Transitievergoeding)

In the Netherlands, under the Work and Security Act (Wet werk en zekerheid), employees dismissed by the employer are legally entitled to a Transition Compensation (Transitievergoeding) equal to 1/3 of a month's gross salary per full year of employment, plus pro-rata fractions for remaining months and days.

Statutory transition compensation formula: 1/3 of gross monthly salary for each year of service from day one.
Pro-rates partial service years, remaining calendar months, and exact days worked.
Includes mandatory 8% holiday allowance (vakantiegeld) and average structural bonuses in base salary.
Statutory compensation cap of €102,000 in 2026 (or one full gross annual salary if higher).

Frequently Asked Questions

What is the statutory severance formula in Netherlands?

In the Netherlands, under the Work and Security Act (Wet werk en zekerheid), employees dismissed by the employer are legally entitled to a Transition Compensation (Transitievergoeding) equal to 1/3 of a month's gross salary per full year of employment, plus pro-rata fractions for remaining months and days.