In essence every Dutch resident is subject to national social insurance contributions (in Dutch: “volksverzekeringen”).

The levy of national social insurance contributions is integrated in the levy of income tax/wage tax, but based on different laws and policies which in many cases will not fully coincide with the levy of Dutch wage tax and/or personal income tax.

The Dutch national social insurances include:

• the General Old Age Act (in Dutch: “Algemene Ouderdomswet” or “AOW”), which provides for a state pension as from the age of 66 years and 4 months (2021);
• the General Widows/Widower and Orphans Act (in Dutch: “Algemene nabestaandenwet” or “Anw”), which provides for a state allowance for qualifying widows/widowers and orphans;
• the Act on long-term care (in Dutch: "Wet langdurige zorg"), which provides for compensation for those who need long-term and intensive care.

The national social insurances in essence apply to all resident taxpayers in the Netherlands who earn income from labor or main residence and non-resident taxpayers who earn such income or who are covered by the Dutch national social insurances on the basis of an international social security treaty or regulation.  

The amount of the national social insurance contributions depends on the personal circumstances of the taxpayer and the amount of income earned. The premiums are integrated in the first two brackets of the Dutch income tax levy. For more details we refer to the page “Tax rates for individuals”.

In case an individual is covered by the Wlz of the Dutch national insurance, he/she is also covered by the Dutch healthcare systems (in Dutch: "Zorgverzekeringswet" or "Zvw"). As of 1 January 2013, the Zvw contribution is in principle only levied from employers. When there is no withholding agent (for instance for self-employed people) the Zvw contribution is levied by assessment at the end of the tax year.

The amount of the Zvw contribution is dependent on the personal situation of the taxpayer and the kind of income he/she enjoys. The 2021 maximum percentage is 7% (6.7% in 2020) of qualifying income, but with a maximum of qualifying income of € 58,311 in 2021 (€ 57,232 in 2020). The maximum annual contribution is thus €4,082 in 2021 (€ 3,835 in 2020).

Apart from the national social insurance contributions, resident and non-resident tax payers who earn income from employment and have not reached the age of 66 years and 4 months (2021), can be subject to employee insurance contributions (in Dutch: “werknemersverzekeringen”).

The employee insurances include:

• the Unemployment Act (in Dutch: “Werkloosheidswet” or “WW”), which provides for a (limited) state allowance in case of unemployment;
• the Labor Disability Act (in Dutch: “Wet op de arbeidsongeschiktheidsverzekering” or “WAO”), which provides for a (limited) state allowance in case of long term disability of an employee that became ill before 2004;
• the Work and Income (capacity to work) Act (in Dutch: “Wet werk en inkomen naar arbeidsvermogen” or “WIA”),  which provides for a (limited) state allowance in case an employee became ill after 2004 and is still not able to work fulltime after 2 years of illness;
• the Sickness Act (in Dutch: “Ziektewet” or “ZW”), which provides for a (limited) state allowance in case of illness of individuals who are employed for a definite period, such as individuals working for an employment agency or individuals who receive an unemployment allowance. 

All employee insurance contributions are levied from and borne by the employers.

The premiums are levied by the Dutch tax authorities.

For the General Unemployment Fund there are two premium rates, 0.34% (from 1 August 2021) for employees with an indefinite contract and 5.34% ( from 1 August 2021) for definite and flexible contracts. The premium for the Disability Fund is 7.03% (2021) and for the Healthcare premiums 7% (2021). In addition to these basis premium, a variable premium is due. The variable premium provides for a range of percentages which vary per industry.

The taxable basis for the employee insurance contributions is the “premium income”. The premium income is maximized on an amount per day. 

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