EMPLOYEE BENEFITS

Get insights on employee benefits such as pension, income protection benefits, Travel Allowances, Bring Your Own Device programs, Accidental Death & Dismemberment, Group Health Insurance and more.

The Dutch pension system is consists of 3 pillars:
  • General Old Age Pensions Act (AOW) or Dutch State Pension
  • Company Pension Plan (most common is Defined Contribution Pension Plan)
  • Private Pension Plans
  • The AOW or Dutch State Pension
The AOW or Dutch state pension consist of a compulsory tax and social security contributions made by all residents living in the Netherlands. The State Pension provides a basic income, the level of which is linked to the statutory minimum wage. The AOW is often supplemented by a Company Pension Plan.
  • Company Pension Plan
The company Pension Plan consist of a joint contributions from employer and employee. The Pension Plan is provided by an external pension provider. The most common Pension Plan is the DC (Defined Contribution) scheme. This is where retirement income will depend on savings pots accumulated by individuals throughout their working lives.
  • Private Pension Plans
Any individuals may choose to supplement to their Dutch pension via voluntary contributions to a private pension fund, which are typically offered by banks and insurance companies.
In order to insure employees against loss of income in case of disability or death there are several benefits incl.:
  • Accidental Death & Dismemberment
  • WGA Gap Insurance
  • WIA Surplus Insurance
  • ANW Gap insurance
  • Accidental Death & Dismemberment
The Accidental Death & Dismemberment Insurance pays a (one-time) benefit if the employee will become permanently injured or die as a result of an accident.
  • WGA Gap Insurance
With the WGA Gap insurance, an employee will receive a supplement to a WGA benefit if the employee will be disabled for longer than 2 years.
  • WIA Surplus Insurance
With the WIA Surplus Insurance the income of the employee is insured with a salary above the maximum daily wages of the WIA. Everyone who becomes at least 35% disabled after 2 years of sickness, is entitled to a WIA benefit. WIA stands for Work and Income (Capacity for Work) Act. This insurance will provides the employee income security in case of disability.
  • ANW Gap insurance
This ANW Gap Insurance is intended as supplement to an ANW benefit. In the event of death, the partner can decrease the risk of loss of income. The term ANW gap is used for a shortage of income that could occur in the event of the death of the employee. This shortfall can occur if the surviving partner receives little or nothing based on the ANW. (ANW is Survivor's Act). After the death, the ANW Gap insurance ensures that the partner of employee receives a temporary benefit until the current AOW age.
There are several benefits related to travel:
  • Travel Allowance Public Transport
  • Mileage Allowance per km
  • Company Car
  • Car Allowance
  • Business Travel Insurance
 
  • Travel Allowance Public Transport
When the employee is daily travelling between work and home by public transport, the employee should receive an allowance on the basis of the public transport costs for a monthly ticket, travelling 2nd class. The employee is not eligible for this allowance in case the employee receives the Company Car Allowance or Car Allowance or have chosen for the Mileage Allowance per km.  
  • Allowance Mileage per kilometre
Employee will receive a kilometre allowance for daily travel between work and home. The distance will be determined on the basis of the most usual route. The travel/kilometre allowance applies to all employees travelling except for the employees who are eligible to the Company Car or when employee is receiving the Travel Allowance Public Transport. The allowance is set by the Tax Authority, and is 0.19 euro cents per kilometre travelled between work and home for not more than 214 days per year. Employees travelling to work for less than 5 days per week will receive a pro rata allowance.  
  • Company Car
A Company Car is assigned to an employee primarily for business use but it may also be used for private trips within the Netherlands. Most companies have outsourced their fleet management to an external fleet provider.  
  • Car Allowance
The company could decide for a car allowance. This allowance is for employees who decide not to have a company car. The amount of the car allowance per month will depend on the job category fo the employee. The car allowance is a gross expense allowance intended for the use of a private car for business purposes. Based on tax legislation this allowance is regarded as a basis for income taxes and social insurance contributions. The Car Allowance will, therefore, also count towards any surcharge of the Tax Authorities and any benefits arising from employee insurance schemes (like for instance the Sickness Benefits Act (ZW) or the Unemployment Insurance Act (WW)). The amount of the Car Allowance will not be included for the purpose of calculating holiday allowance, pension or bonuses. The employee is responsible for the purchase of the private car and all associated costs and you are furthermore obliged to use his private car as if it were a Company Car.  
  • Business Travel Insurance
With this insurance the employee can count on expert help in case of sickness, accidents, lost luggage or damages during a business trip.
Health Insurance is mandatory for all people who live or work in The Netherlands. The Dutch government is responsible for the accessibility and quality of the healthcare system in the Netherlands, but not in charge of its management.

The Dutch health insurance system is a combination of private health plans with social conditions built on the principles of solidarity, efficiency and value for the patient. Healthcare in The Netherlands is funded through taxation: mandatory health insurance fees and taxation of income (pre-specified tax credits) and is mandatory by law.

The company can decide to obtain a group healthcare insurance and the employee may voluntarily participate in this insurance. The collective health insurance consists of a basic level of coverage and various supplemental coverage levels available for eligible employees to choose from for themselves and their dependents. Due to the group company arrangements there could be premium discounts for the employee.

Once the employee is leaving the company, the health insurance premium will continue. The costs will be paid by the employee, but the premium discounts as of the group health insurance arrangements will lapse.

Bring Your Own Device (BYOD) also called Bring Your Own Technology (BYOT), Bring Your Own Phone (BYOP), and Bring Your Own Personal Computer (BYOPC)—refers to the policy of permitting employees to bring personally owned devices (laptops, tablets, and smart phones) to their workplace, and to use those devices to access privileged company information and applications. There are various BYOD programs possible, in case you want more information, please contact us.