Social Security Contributions — Netherlands

Breakdown: AOW pension 17.90%, Anw survivors 0.10%, Long-term care (Wlz) 9.65%. Part of the 35.75% first-bracket rate, not an extra deduction. Unemployment (WW), disability (WIA) and the income-related healthcare contribution (Zvw) are paid by the employer.

National insurance premiums only apply to income in the first bracket, up to €38,883 (2026). Above this amount, no additional premiums. Someone earning €150,000 pays the same premiums as someone earning €40,000.

Separate mandatory health insurance premium around €150/month (varies by insurer). Not included in the 27.65%. Paid directly to private insurer, not through payroll. Everyone must have basic coverage. Income-dependent healthcare allowance available for low earners.

Employers pay additional payroll taxes: unemployment, disability, sector-specific contributions. Varies by industry and company size. Total employment cost for employer: salary + 20% payroll taxes + pension contributions. Why hiring in Netherlands expensive.

Employee pays 35.75-49.5% income tax (27.65% national insurance included in the first bracket). Employer pays ~20% additional. Total tax/social burden on employment approximately 47-50% for middle incomes, reaching 60%+ for high earners. Among highest in world.

Self-employed (zzp'ers) only pay AOW pension contribution through tax return - much lower rate than employees. Don't pay unemployment, disability, or other employee insurances. Major reason many work as self-employed - immediate 20%+ savings.

Must arrange own: disability insurance (very expensive in NL), pension savings, income protection. No unemployment benefits. Also pay income tax on profits. Still usually cheaper than employee status for same income.

Self-employed get special deduction (zelfstandigenaftrek) €6,310/year reducing taxable income. Compensates for lack of employee benefits. Plus deduct all business expenses: office, equipment, travel, insurance, pension contributions. Can save 30-40% overall.