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Social security in Netherlands 2026
Dutch employees don't see separate social security lines: national insurance of 27.65% (state pension, survivors, long-term care) is folded into the 35.75% first tax band, capped at €38,883 of income — a maximum of about €10,750 a year.
Unemployment and disability insurance are employer-funded, and health cover is a private policy (roughly €150 a month) plus an income-dependent employer charge.
At a glance
- top rate
- 27.65% within the first band — effectively capped ≈ €10,750/year
- entry band
- Included in the tax rate from the first euro
- tax year basis
- Calendar year, collected through wage withholding
- filing deadline
- Handled through payroll and the annual return
- residency basis
- Residence-based — it attaches to living in the Netherlands, not just working
- regime flag
- Pensioners skip the 17.9% state-pension part (paying 17.85% in band 1)
Rates
What individuals pay (2026)
| Rate | Base | Applies to |
|---|---|---|
| 27.65% | Box 1 income up to €38,883 | National insurance — the general old-age pension (AOW), survivors and long-term care — inside the first tax band |
| 17.85% total first-band rate | Same base | Individuals past state-pension age (67) — the pension part drops away |
| Flat premium ≈ €1,800/year + own-risk excess | Not income-based | Mandatory private health insurance, paid directly to an insurer |
| Income-dependent health contribution | Profits up to €79,409 | Self-employed only — rate set annually (employer pays it for employees) |
Thresholds & allowances
- Contribution ceiling€38,883 (first band)
National insurance stops there; only income tax rates apply above
- Healthcare allowanceIncome-tested subsidy (zorgtoeslag)
Offsets the private premium for lower incomes
Residency
Residency trigger
National insurance follows residence — live in the Netherlands and you contribute on Box 1 income whether or not you work. Employee insurances (unemployment, disability) attach to Dutch employment and are employer-paid.
Non-resident treatment
Cross-border workers follow EU coordination rules; non-residents working in the Netherlands typically pay the national-insurance part through Dutch payroll while insured here.
Notes
- Because contributions hide inside the first tax band, the marginal 'tax' below €38,883 is mostly social insurance — relevant when treaties or EU rules exempt you from Dutch coverage.
- The state pension age is 67 for 2024–2027.
- The self-employed pay an income-dependent health contribution on profits up to €79,409 — the exact 2026 rate is unclear in available sources (about 5%) and worth checking; employees never see it because employers pay it.
- National insurance contributions are not deductible for income tax.
FAQ
How much social security does a Dutch employee pay?
27.65% — but folded into the first income tax band up to €38,883, so the practical maximum is about €10,750 a year and higher earners pay nothing extra. Unemployment and disability cover is employer-funded.
Is Dutch health insurance a payroll tax?
Not for employees — you buy a mandatory private policy of roughly €150 a month (an income-tested allowance helps lower earners), and your employer pays a separate income-dependent contribution of several percent on your salary.
Figures: tax year 2026, compiled from public sources. Not tax advice.