English: pension in the Netherlands

On this page you will find more information about pension in general and pension schemes in the Netherlands in English. In recent years, we have noticed that the working language within (international) companies is increasingly English. That is why we believe it is important to have up-to-date information available. Read more about us and our services.

About us

It’s always good to know who you’re doing business with. We would like to introduce you to our company and the people behind it.

At &Gommer Pensions Group we find it important to provide our customers with good service at every level. Pension issues are often very complicated, which is why we take the time to explain what we do to our customers in a way that they understand.

Meet the Power team

Our team consists of pension specialists but also of supporting staff because good support is indispensable when providing pension advice. Our team is carefully selected to provide the best service and to maintain a proactive customer relationship with our customers. Building a relationship always starts with a first meeting and impression, that’s why we briefly introduce our team here. Would you rather meet us in person? You can make an appointment with us by clicking on the coffee cup

Pension scheme for employees in the Netherlands

Are you an international employer and do you want a pension scheme for your Dutch employees? Then you’ve come to the right place. On this page you can read all about the pension system in the Netherlands and what comes with it when you are going to introduce a pension scheme.

Pension in the Netherlands

In the Netherlands pension is based on the 3-pillar system.

The first pillar is a basic provision from the government. The government pays out an AOW- benefit (Old-age pension) from the age of 67 years. The amount depends on the living situation and the number of years that someone has been a resident of the Netherlands. In the event of death there is a basic provision in the form of an ANW-benefit (survivor benefit act) for partners and children. In the event of incapacity for work, there is a WIA- benefit, a basic provision for employees.

The second pilar is the pension that an employer commits to an employee.

The third pilar consists of the facilities that people arrange themselves in private.

No mandatory

As an employer in the Netherlands, you can choose to offer a pension scheme to your employees. There is no pension obligation. Unless, as an employer, you are covered by a mandatory pension fund or if a cao (collective employment agreement) containing agreements about pension applies to you. 

Own choice

If you as an employer are not obligated to commit a pension, you are free as an employer to commit to a pension or not. You determine the amount and the types of pension yourself. If you offer a pension scheme to your employees on a voluntary basis, you can determine the details of this pension scheme yourself.

Assent / Agreement of approval

When you introduce a pension scheme, all employees have to agree with it. If your company has a works council, the works council must also approve the pension scheme.

Defined contribution

Most employers in the Netherlands opt for a defined contribution scheme. From 2023, other forms of pension schemes will no longer be permitted.

In a defined contribution scheme, you build up a pension capital with the premium that is paid. This means that for everyone an individual premium is paid into an investment account (personal pension pot) at the insurer. The premium is a certain percentage of the pension base. The pension base is calculated by deducting the AOW franchise from the salary. This is because no pension may be accrued on the AOW franchise because residents of the Netherlands are entitled to an AOW benefit.

The premium percentage is age independent. You can determine the height of the percentage yourself, but the maximum is 30%.

Old age pension

On the pension date, the pension pot must be used to purchase a lifelong pension benefit. The statutory retirement age is 68 years. This differs from the AOW-age.

Partner and orphan pension

In addition, a partner’s pension and an orphan’s pension up to the age of 25 can be insured for the surviving dependents of the employees. These pensions are insured on a risk basis. You can determine the height yourself. The partner’s pension may amount to a maximum of 50% of the salary and the orphan’s pension 14%.

Incapacity for work

In the event of incapacity for work, continuation of pension accrual can be insured and, if desired, additional coverage on top of the WIA-benefit from the government.

Employee contribution

In the Netherlands it is common for employees to contribute to their pension themselves. This contribution is deducted from the employee’s gross salary. Most pension scheme have an employee contribution between 25% and 50%.

Advice

When you want to introduce a pension scheme to employees in the Netherlands, a pension advisor can help you with designing a pension scheme and mediates in the establishment of the insurance. 

We will go through the following steps:

1. Inventory of wishes and goals, risk appetite and the financial position of the company.
2. An analysis of possible mandatory pension funds and collective labor agreements
3. Based on the outcome of steps 1 and 2, a draft scheme is designed.
4. Recalculation of the pension scheme for the coming years.
5. After approval of the pension scheme, we request several quotes from pension providers and make a comparison of the offers.
6. After the comparison, a choice is made for a pension provider.
7. The new scheme is then communicated to the employees and, if applicable, the works council, and their approval is requested.
8. Implementation of the pension scheme at the chosen pension provider and a check of the legal documents.

Experience

&Gommer Pensions Group has extensive experience in providing pension advice to international employers. We are the pension advisor of various international companies.

Do you want a pension scheme for your employees in the Netherlands?

Please feel free to contact us. We will schedule an introductory meeting to get to know each other.