21 February 2023 Add expertise tag Add service tag Add country tag
Payroll & HR services Global Mobility Services International labor and cross border assignments Payroll & HR Tax compliance

An employee covered by the Dutch social security system is subject to Dutch national insurance contributions, and the Dutch employee insurance applies. Employee insurance is an obligatory insurance scheme that aims to insure employees against (some) financial implications of illness, incapacity for work, and unemployment. However, the contributions for the employee insurance are paid by the employer. Only employees and deemed employees can be subject to Dutch employee insurance. 

The employee insurance includes the following:

- Sickness Benefits Act (ZW)
- Disability Insurance Act (WAO)
- Work and Income Capacity for Work Act (WIA), which includes the complete and sustainable incapacity for work income (IVA) and the return to work for partially disabled persons (WGA)
- Unemployment Act (WW)

The contributions/premiums for the employed person insurance schemes are entirely due and paid for by the employer (no contribution from the employee and no withholding from the employee’s salary), who may recoup a small part of the premiums due from the employee. This relates to the so-called differentiated premium for the Work Re-employment Fund ('Whk'). It is up to the employer to decide whether they want to recoup this part of the premiums from the employee’s salary, which will be shown on the employee’s salary slip.

The premiums for employee insurance consist of

Unemployment insurance: WW-Awf premium and UFO premium (applies to government personnel only)
Disability insurance:  Basic WAO / IVA / WGA premium and differentiated premium Whk
Child care premium: Basic uniform premium for child care and differentiated premium for child care (Aof)

The employer reports and pays the contributions to the Tax Administration every month.