Dutch Social Security
The Social Security Acts can be classified into 2 categories, which are National Insurance Acts and Employee Insurance Acts (excluding health insurance).
National Insurance Acts provide benefits to all Dutch residents. National Insurance contributions are payable on taxable income of up to €33,363 and are not deductible for tax purposes. In fact, the maximum annual National Insurance contribution payable by an employee is €8,244 (after taking into account the social security credit).
Employee Insurance Acts provide additional benefits for wage earners, where employee Insurance contributions (excluding health insurance) are €0 for the employee and approximately €4,900 for the employer. Insurance claims up to €350 per year are for the own risk of the individual, then any insurance claims in excess of €350 are paid by the health insurer. In addition to this standard contribution, an income-related contribution is payable at a rate of 7.75% (for self-employed persons, a 5.65% rate applies), capped at an income of €50,853. The 7.75% contribution for employees is fully paid by their employers and it is not considered taxable income to the employee.
Every individual who is socially insured in the Netherlands must take out an individual health insurance policy, which means that every individual aged 18 and older pays a standard contribution averaging € 1,222 for health insurance. Furthermore, an income-related contribution is payable at a rate of 7.75% and employers are required to reimburse employees for this contribution and the reimbursement is seen as income.
|Corporate Tax Rate||25.00||25.00||48.00||25.00||%|
|Personal Income Tax Rate||52.00||52.00||60.00||52.00||%|
|Sales Tax Rate||21.00||21.00||21.00||17.50||%|
|Social Security Rate||42.46||40.80||44.10||40.80||%|
|Social Security Rate For Companies||11.31||10.15||12.50||10.15||%|
|Social Security Rate For Employees||31.15||30.65||32.60||29.40||%|
Tax Changes in 2017
There have been made following changes in National Insurance premiums – 27.65% in total.
National insurance, which is divided in:
- AOW (General Old-age Pensions Act ): 17.9%
- ANW (General Surviving Relatives Act): 0.6%
- Wlz (Act on long-term care): 9.65% only has to be paid with an income of less than 33,791€.
National Insurance rates valid for 2017:
|Income||Tax per bracket||National insurance|
|0€ – 19,982€||8.90%||27.65%|
|19,982€ – 33,791€||13.15%||27.65%|
|33,791 – 67,072€||40.80%||–|