Skip to content

Menu

LexBlog, Inc. logo
CommunitySub-MenuPublishersChannelsProductsSub-MenuBlog ProBlog PlusBlog PremierMicrositeSyndication PortalsAboutContactResourcesSubscribeSupport
Join
Search
Close

Pension reforms in the Netherlands

By Suzanne Kampijon on March 25, 2014
Email this postTweet this postLike this postShare this post on LinkedIn

If you are an employer currently offering your Dutch employees participation in a pension arrangement, then the below is a “must read”. In the Netherlands a legislative proposal is pending which may have an impact on the pension arrangements within your company.

As of 1 January 2015 the following changes may come into force:

For all employees

  • Yearly accrual percentages are decreased
  • This means that the annual amount which your employees may  save for their old age pensions is reduced
  • Pension premiums will decrease

As premiums are generally paid by both employers and employees, it is up to you as employer to decide who is going to benefit from the premium decrease. Will you reduce the employee contributions or will you use the released salary costs for other purposes? Now is the time to plan and decide. Note that changes to pension arrangements administered by an insurer could require prior works council consent.

For employees with a yearly salary over EUR 100,000 gross

  • Pension can no longer be accrued for salary over EUR 100,000 gross
  • This means that your key employees will face a pension deficit
  • A supplementary savings scheme will be introduced
  • Payments to this savings scheme are to be made out of net salary

Contributions to a Dutch pension scheme are currently only taxed at payment on retirement. This tax friendly treatment will now be limited.

Pension can no longer be tax friendly accrued for salary over EUR 100,000 gross. Senior and key positions in your company will be affected by this change. Depending on the nature of your pension commitment you might be required to compensate such employees for this pension deterioration. Even if this is not the case, you might want to consider doing this on a voluntary basis, as these employees will probably be the core of your human capital.

The following questions are worth considering: Will you offer participation in a company supplementary savings scheme? Or will you otherwise increase gross salary so that employees can arrange for that themselves? How will this affect your budget? These are questions to review and answer at short notice, as key employees are always the first to raise questions of this nature.

We will of course keep you updated on any changes in respect of this proposal (including its timing).

Photo of Suzanne Kampijon Suzanne Kampijon
Read more about Suzanne KampijonEmail
  • Posted in:
    Employment & Labor, International
  • Blog:
    Global Workplace Insider
  • Organization:
    Norton Rose Fulbright
  • Article: View Original Source

LexBlog, Inc. logo
Facebook LinkedIn Twitter RSS
Real Lawyers
99 Park Row
  • About LexBlog
  • Careers
  • Press
  • Contact LexBlog
  • Privacy Policy
  • Editorial Policy
  • Disclaimer
  • Terms of Service
  • RSS Terms of Service
  • Products
  • Blog Pro
  • Blog Plus
  • Blog Premier
  • Microsite
  • Syndication Portals
  • LexBlog Community
  • 1-800-913-0988
  • Submit a Request
  • Support Center
  • System Status
  • Resource Center

New to the Network

  • Boston ERISA & Insurance Litigation Blog
  • Stridon News and Insights
  • Taft Class Action & Consumer Insights
  • Labor and Employment Law Insights
  • Age of Disruption
Copyright © 2022, LexBlog, Inc. All Rights Reserved.
Law blog design & platform by LexBlog LexBlog Logo