Changes 2016 in employee benefit legislation

by Alexander Beard, on Jan 21, 2016 1:57:40 PM

Every year several figures for pension plans in the Netherlands are updated. Please find the most important changes below.


Pension system

Minimum required offset

Final Pay

€ 14,657

Average Pay

€ 12,953

Defined Contribution

€ 12,953


The offset has to be taken into account because of the social state pension that all citizens of the Netherlands receive.

Maximum pensionable salary
The maximum allowed pensionable salary has been increased from € 100,000 to € 101,519 from 01.01.2016.

State Benefit pension (AOW)
The State Benefit is paid out to all citizens in the Netherlands. The total amount received depends on the number of years lived in the Netherlands and whether the person is single or living together with a partner. As per January 2013 the retirement age for the state pension (AOW) has increased and will continue to be increased in future years. In addition, the age threshold for all other social benefits has increased to the same level as the new AOW age.

The threshold has changed from 65 to 65 years and 6 months effective from 01-01-2016.

About 1.2 million people in the Netherlands (7% of the Dutch population) has switched from Health provider per 01-01-2016. At the end of the year Dutch citizens have the opportunity to change provider. This year more people have changed from provider than last year.

In 2016 the mandatory deductible is increased from 10 euro to 385 euro. This means that the insured has to pay the first 385 euro of medical expenses such as specialist care and medicines, themselves. The mandatory deductible does not apply to obstetric and maternity care and costs that are made at the general practitioner.

No large adjustments have been carried through on the coverage of the basic package.


Unemployment Law (WW)
Starting 1 January 2016 the maximum period an employee can receive an unemployment benefit from the state is lowered with one month every quarter until the maximum period is changed  to 24 months per 01-04-2019. (current maximum period is 38 months).

Disability Benefit (WGA)
In line with the unemployment Law changes the maximum benefit period for a state disability benefit for partially disabled employees is changed to 24 months in 3 years time.

Employment after retirement age
Several legislation changes have been done to make it more easy to hire employee who have reached the state pension age. It becomes easier to end the employment of these employees and the statutory sick pay period is decreased to 13 weeks where 104 weeks apply for other employees.

Bram Bogaard
Managing Director - Intl Employee Benefits

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