Changes 2017 in employee benefit legislation

by Alexander Beard, on Jan 16, 2017 9:46:04 AM

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

€ 14.850

Average Pay

€ 13.123

Defined Contribution

€ 13.123


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 € 101.519 to € 103.317.

State Benefit pension (AOW) age
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 9 months effective from 01-01-2017.

Corporate pension age
The pension age for pension plans will be increased to 68 years starting 01-01-2018. This means the maximum accrual rates will be lowered per the same date. Although this is a change that is caused by fiscal legislation changes, it is important to understand that these changes are to be agreed on with the employees. We strongly advice to start the negations with the employees as soon as possible in 2017.

About 1.0 million people in the Netherlands (6.1 % of the Dutch population) has switched from Health provider per 01-01-2017. This is lower than expected. 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 2017 the mandatory deductible remains 385 euro. 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, although the average premium increase is € 10,- per month for the basic insurance.


The Working Conditions Act (Arbowet)
Changes in the Working Conditions Act have been postponed until 01-07-2017. Major changes are related to company doctor visits, minimum requirement to the contract with the occupational health and safety service and work council rights in relation to approval in relation to the person to be chosen to act as occupational health and safety officer.

Disability Benefit (WGA)
The statutory distinction between permanent and temporary employment in the funding of the work resumption benefit for persons partially capable of work (WGA) will be eliminated. As of 1 January 2017 employers will pay a single combined WGA contribution and will have the choice between either bearing the full risk of WGA liability or taking out public insurance to cover their risk.

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 more easy 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: Europe - AB International Benefits B.V.