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Transition payment

This information is provided by: Netherlands Enterprise Agency

If you dismiss an employee who has worked for you for 2 years or more, you have to compensate them for expected costs with regard to their finding new employment, such as costs for scholing or outplacement. This is called a transition payment.

Calculation transition payment

The transition payment is calculated for each period of 6 months your employee has worked for you. The total amount depends on the number of years of their employment:

  • They receive 1/6 of their gross monthly salary for each period of 6 months.
  • If your employee has worked for you for more than 10 years, they will receive 1/4 of their gross monthly salary from the 10th year of employment.
  • If your employee is 50 years of age or older and they have worked for you for more than 10 years, until 2020 they will receive 1/2 of their gross monthly salary for each 6 month period. This only applies if your company has more than 25 employees.

Maximum

The transition payment is capped at €76,000, unless your employee's salary exceeds that amount. In that case, the transition payment is capped at this employee's yearly salary. The transition payment is calculated on the basis of your employee's gross monthly salary. For the actual payment you can conclude a payment scheme with your employee.

This information is provided by:

Netherlands Enterprise Agency

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Any further questions?

Netherlands Enterprise Agency +31 (0)88 602 44 44