How to read a Dutch payslip (loonstrook): gross, wage tax, holiday pay and net

What a loonstrook is

The loonstrook (payslip) shows how your gross pay becomes the amount paid into your bank account. You get one with every payment, on paper or digitally.

Keep every payslip: you need them for renting, credit, your tax return and any talk with UWV or the municipality about income.

At the top: who, when and on what terms

Check the data everything else is based on first.

• name, BSN and employer;
• pay period (week, 4 weeks or month) and start date;
• hours worked and hourly rate (uurloon) or monthly wage (maandloon);
• job and, if it applies, the collective agreement (cao) and scale;
• loonheffingskorting: yes (ja) or no (nee).

Bruto (gross): pay before deductions

Gross pay is what you earned before tax and contributions: hours times rate, plus supplements from the contract or cao, such as overtime or irregular hours.

Loonheffing: wage tax and contributions

Loonheffing is what your employer withholds and pays to the Belastingdienst: wage tax (loonbelasting) plus national insurance contributions (premies volksverzekeringen, including AOW). It is an advance; the final settlement comes with your tax return.

Loonheffingskorting is a tax credit that only one employer at a time may apply. If it is applied in two places, you may have to pay back later.

Pension and other deductions

Depending on contract and cao, your pension contribution (employee share) may be deducted. Every deduction should be clear from its label.

• If you do not understand a line, ask about it in writing.
• Keep the answer together with the payslip.

Vakantiegeld (holiday pay)

According to Rijksoverheid you are entitled to at least 8% of your gross pay over the past year. It is paid at least once a year, for most employees in May or June. The amount built up is shown on the payslip.

By law you also get a minimum of paid leave: four times your weekly working hours per year.

Reservering (amounts set aside)

A reservering is pay you have built up but receive later, such as holiday pay and leave days. Some collective agreements have more of them.

Example (arithmetic only, not a Razom rate): with gross pay of €2,000 a month, 8% holiday pay is 2,000 × 0.08 = €160 before tax.

Netto (net): what you receive

Net = gross − loonheffing − other deductions (such as pension contribution), plus any untaxed allowances. It must match your bank statement.

In the month holiday pay is paid out, your net pay rises noticeably. One-off payments may be taxed at a higher withholding rate; the difference is settled in your tax return.

First-month checklist

Go through your first payslip with your contract next to it.

• name, BSN and IBAN are correct;
• hours match your own records;
• the rate is not lower than your contract, your cao scale and the minimum wage;
• loonheffingskorting is applied in one place only;
• holiday pay and, if applicable, pension are visible;
• payment date and amount are right.

Want to work officially, with a clear payslip?

Razom puts skilled workers on its own payroll (loondienst). We never charge job seekers anything. See how working in a crew goes.

Join a crew

More on this topic

• VCA in your own language
• What a collective agreement covers
• Reception housing and work: contribution and living allowance

Frequently asked questions

Sources

• Rijksoverheid: how much holiday pay you get (8%)
• Rijksoverheid: holiday and holiday pay
• Rijksoverheid: what an employment contract contains
• Belastingdienst: wage tax and contributions
• Rijksoverheid: minimum wage
• Inspectie SZW (Dutch Labour Authority): reporting abuses

This is general information, not legal advice. Rules change: check the sources above.

← All guides