Dutch Social Security & Pension Insurance
Social Security
From the moment you start working in the Netherlands, you become liable to pay Dutch social security contributions. These social security contributions are paid to cover disability, unemployment, health care and the state pension from the age of 65.
However, if a so-called A1/E101 form is obtained from abroad which states that social security contributions are only due abroad, then no Dutch social security contributions are deducted from the Dutch income. The same applies if you have a job at the same time in your home (EU) country, then only your home country can levy social security contributions.
If you are the major shareholder of the company for whom we provide the payrolling services, then no social security contributions need to be deducted. We would like to stress in that case that you do not have disability insurance but you do have (and have to pay for) Dutch health care insurance coverage for the Netherlands.
Pension insurance
In the Netherlands the employer is not obliged to make pension arrangements unless a collective labour agreement (CAO) is in place which requires the employer to take out a pension insurance, or if the employment agreement states that a pension insurance is to be provided.
Payments made to a non-Dutch pension insurance company are not automatically regarded as a pension contribution as defined in the Dutch wage tax act. These payments, therefore, may not be tax deductible. It is different if you had a pension insurance for at least six months before you arrived in the Netherlands; then your pension insurance meets the Dutch criteria of a pension insurance and you continue to make contributions to the pension insurance. We can then arrange for approval from the Dutch tax office for these pension payments to be regarded as pension payments under the Dutch wage tax act and, therefore, tax deductible. Our one-off fee for this service is EUR 350 excluding VAT.