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Dutch Severance Calculator (Transitievergoeding) - 2026 Rules

Calculate your statutory Dutch transition payment: one third of a monthly salary per year of service, pro rata by day. Free and browser-based, nothing is stored.

Statutory transition payment (gross)

€11,339.14

Length of service9.00 years (3287 days)
Monthly salary base (incl. components)€3,780.00
1/3 monthly salary per year of service€11,339.14
2026 statutory maximum€102,000.00

Based on 2026 figures. This is an indication, not tax or legal advice.

Transitievergoeding: the Dutch Statutory Severance Payment

When a Dutch employer ends or does not renew an employment contract, the employee is in principle entitled to a transition payment (transitievergoeding) from the very first working day, including during a probation period. The statutory formula is simple: one third of the gross monthly salary for every year of service, with the remainder calculated pro rata down to the day. Someone earning EUR 3,780 (including holiday allowance) with exactly nine years of service receives 9 x EUR 1,260 = EUR 11,340 gross.

The salary base is broader than your basic wage. By law it includes the 8% holiday allowance, a fixed thirteenth month, structural overtime pay, and the average of variable bonuses over the last three years. This calculator adds 8% holiday allowance with the toggle and spreads any fixed annual bonus amount over twelve months, matching the official method in the Besluit loonbegrip.

There is a ceiling: in 2026 the transition payment is capped at EUR 102,000 gross (up from EUR 98,000 in 2025), or at one gross annual salary if you earn more than that per year. The cap is indexed every January. Note that the payment is gross: payroll tax is withheld at your bijzonder tarief, so the net amount is considerably lower.

No transition payment is due when the employee resigns voluntarily, is dismissed for serious culpable behaviour, or reaches state pension age. Employer and employee can also agree a different amount in a settlement agreement (vaststellingsovereenkomst), where the statutory figure usually serves as the floor for negotiations. Check your notice period with the Dutch Notice Period Calculator on ToolForte, and estimate the tax on the payout with the Dutch Holiday Allowance Calculator, which explains the bijzonder tarief concept.

Dutch rules toolkit

This is one of 21 tools built on actual Dutch regulations rather than generic maths: salary and severance, notice periods and WW duration, BTW and mortgages, public holidays, AOW age, and GDPR-safe test data for Dutch systems.

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How the Severance Calculator Works

  1. 01Enter your gross monthly salary and any fixed annual bonuses or thirteenth month.
  2. 02Keep the 8% holiday allowance toggle on unless your monthly figure already includes it.
  3. 03Pick your employment start and end dates; the calculator counts your service to the day.
  4. 04See the statutory transition payment: 1/3 monthly salary per year of service, capped at EUR 102,000 or one annual salary in 2026.

The Transitievergoeding Formula

Since 2020 the Dutch transition payment accrues from the first working day: one third of the gross monthly salary per year of service, pro rata by day. The salary base includes 8% holiday allowance, a fixed thirteenth month, and structural bonuses. In 2026 the payment is capped at EUR 102,000 gross, or one gross annual salary if you earn more than that.

When to Use This Calculator

Use it when your employer announces a reorganisation or dismissal, when your temporary contract is not renewed, or when negotiating a settlement agreement. The statutory amount is the floor in most negotiations, so knowing it to the euro strengthens your position.

Common Use Cases

  • Check the offer in a settlement agreement against the statutory minimum before signing. → Dutch Notice Period Calculator
  • Estimate your payout when a reorganisation is announced so you can plan ahead.
  • Calculate what a non-renewed temporary contract should yield, even after one year.

Tips

  • Check your payslip for structural allowances and bonuses; they raise the salary base and are often forgotten.
  • In settlement negotiations the statutory amount is the floor, not the ceiling; long service or a weak dismissal file justifies more.
  • You normally have to claim the payment within three months after the employment ends, so do not wait too long.

Frequently Asked Questions

How is the transition payment calculated in 2026?→
One third of your gross monthly salary for every year of service, with partial years counted pro rata by day. At EUR 3,780 monthly (including holiday allowance) and 9 years of service that is EUR 11,340 gross. The 2026 cap is EUR 102,000 or one gross annual salary if higher.
Which salary components count?→
The base is your gross monthly wage plus 8% holiday allowance, plus 1/12 of a fixed thirteenth month, structural overtime pay, and the average of variable bonuses over the past three years. Expense reimbursements and employer pension contributions do not count.
Do I get a transition payment if my temporary contract simply ends?→
Yes. If the employer chooses not to renew a fixed-term contract, you are entitled to the transition payment over the full duration worked, even for a single one-year contract. You get nothing only if you decline a comparable renewal offer or resign yourself.
Is the transition payment taxed?→
Yes, it is gross income taxed at your bijzonder tarief, which in 2026 ranges from 35.75% to 56.01%. Since 2014 there is no tax-friendly standing-right scheme anymore, so a EUR 20,000 payment can easily shrink to around EUR 11,500 net for middle incomes.
When is no transition payment due?→
When you resign voluntarily, when dismissal results from your own serious culpable behaviour, when you reach state pension age, or when the employer is bankrupt. In a mutual settlement agreement the payment is negotiable, but the statutory amount is the usual starting point.

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