Dutch Payslip Explained (Loonstrook)
A line-by-line guide to understanding your Dutch payslip. Learn what loonheffing, pensioenpremie, vakantiegeld, and other deductions mean.
What Is a Loonstrook?
A loonstrook (payslip or salary slip) is the document your employer provides each pay period — usually monthly — showing how your gross salary is broken down into deductions and your net pay.
For expats, the Dutch payslip can be confusing. It is typically in Dutch, uses Dutch tax terminology, and includes deductions you may not recognize. This guide walks through every major line item so you know exactly where your money goes.
Key Sections of Your Payslip
Though payslip formats vary by employer, they all include these standard sections:
| Section | Dutch Term | What It Shows |
|---|---|---|
| Employee details | Werknemer | Your name, BSN, pay period, hire date |
| Gross salary | Bruto loon | Your total salary before deductions |
| Tax & social security | Loonheffing | Combined income tax + social security premiums withheld |
| Pension | Pensioenpremie | Your employee share of pension contributions |
| Holiday allowance | Vakantiegeld | Monthly accrual of your 8% holiday allowance |
| Net pay | Netto loon | The amount deposited to your bank account |
| Year-to-date totals | Cumulatief | Running totals for the year (gross, tax, net) |
Gross-to-Net Breakdown
Here is a simplified example showing how a €5,000 monthly gross salary becomes net pay:
| Line Item | Amount | Notes |
|---|---|---|
| Bruto loon (gross salary) | €5,000 | Your contractual monthly salary |
| Pensioenpremie (employee share) | -€250 | Varies by pension fund (typically 4–6%) |
| SV-loon (social insurance income) | €5,000 | Basis for employer social security calculations |
| Fiscaal loon (taxable income) | €4,750 | Gross minus pension = basis for loonheffing |
| Loonheffing (tax + social security) | -€1,460 | Based on tax brackets + heffingskortingen |
| Vakantiegeld reservation | €0 | Accrued; paid out in May (8% of gross) |
| Netto loon (net pay) | €3,290 | Deposited to your bank account |
Loonheffing Explained
Loonheffing is the single largest deduction on your payslip. It is not just income tax — it is a combined withholding of:
- Income tax (inkomstenbelasting) — Based on the progressive tax brackets
- AOW premium — State pension contribution (17.90%)
- Anw premium — Survivors' benefit contribution (0.10%)
- Wlz premium — Long-term care contribution (9.65%)
Your employer calculates loonheffing using wage tax tables (loonbelastingtabellen) provided by the Belastingdienst. These tables already incorporate the standard heffingskortingen (tax credits), so your payslip withholding is approximately what you would owe annually.
Pension Contributions
Most Dutch employers participate in a pension fund. The contribution is split between employer and employee:
- Employer contribution: Typically 2/3 of the total — this does not reduce your net pay
- Employee contribution: Typically 1/3 of the total — deducted from your gross salary before loonheffing is calculated
Because pension premiums are deducted before tax, they are tax-deductible — you do not pay income tax on the money going into your pension. However, pension income is taxed when you receive it at retirement.
Holiday Allowance (Vakantiegeld)
Dutch law entitles employees to a holiday allowance (vakantiegeld) of at least 8% of gross annual salary. Here is how it typically works:
- Accrual: 8% is accrued monthly (shown as a reservation on your payslip)
- Payout: Lump sum in May (sometimes June), covering June of the previous year through May of the current year
- Taxation: Taxed at the bijzonder tarief (special rate) when paid out — this is often a higher withholding rate
The May payout can be substantial — for a €60,000 salary, it is approximately €4,800 gross. Some employers offer the option to receive it monthly instead of as a lump sum.
30% Ruling on Your Payslip
If you have the 30% ruling, your payslip should show the tax-free allowance as a separate line item. It typically appears as:
| Line | Without 30% Ruling | With 30% Ruling |
|---|---|---|
| Bruto loon | €5,000 | €5,000 |
| 30%-vergoeding | — | -€1,500 (tax-free) |
| Fiscaal loon (taxable) | €4,750 | €3,250 |
| Loonheffing | ~€1,460 | ~€690 |
| Netto loon | ~€3,290 | ~€4,060 |
The exact labels vary by employer. Common names include 30%-vergoeding, extraterritoriale kosten, or ET-regeling. If you do not see it, contact your HR department.
Other Common Deductions
Beyond loonheffing and pension, your payslip may include these deductions:
| Deduction | Dutch Term | What It Is |
|---|---|---|
| Health insurance (employer) | ZVW-bijdrage werkgever | Employer-paid health insurance levy (~6.57% of salary). Not deducted from your net pay, but shown for transparency. |
| Commuting allowance | Reiskostenvergoeding | Tax-free commuting reimbursement (€0.23/km in 2026). Added to your net pay. |
| Lease car addition | Bijtelling | Taxable benefit for company car use (typically 22% of list price per year, added to taxable income). |
| WGA/WIA premiums | WGA/WIA-premie | Disability insurance premiums — employer-paid but sometimes visible. |
| Union membership | Vakbondscontributie | If deducted via payroll. Partially tax-deductible. |
Frequently Asked Questions
Why is my first payslip different from the rest?
Your first payslip may include one-time items such as reimbursement of relocation costs, a sign-on bonus, or a pro-rata holiday allowance reservation. The loonheffing percentage may also appear higher because your employer applies annual bracket rates to a partial-month salary.
What does "bijzonder tarief" mean on my payslip?
Bijzonder tarief (special rate) is the withholding rate applied to irregular payments like bonuses, overtime pay, or back pay. It is calculated based on your annual income and is often higher than your regular monthly rate to prevent under-withholding. The difference is reconciled when you file your annual tax return.
Why does my net pay change from month to month?
Common causes include: pension contribution changes at year-start, crossing the social security income threshold mid-year, annual adjustments to heffingskortingen tables, one-time deductions or corrections, and the May holiday allowance payout. If the change is large and unexplained, check with your HR department.
Should my payslip show the 30% ruling?
Yes. If the 30% ruling is active, your payslip should show a separate line reducing your taxable income by 30%. If it does not appear, your employer may not have processed it yet — follow up with HR and the Belastingdienst.
Is my employer required to give me a payslip?
Yes. Under Dutch law (Article 7:626 BW), your employer must provide a written payslip for every payment period. It must show your gross salary, all deductions, and the net amount paid. If your employer refuses, you can report them to the Arbeidsinspectie.