Severance pay

In the Netherlands, you normally get money from your employer after you are dismissed. This is called severance pay (it is also known as a transition payment).  

What is severance pay? 

If you are dismissed in the Netherlands, you often receive severance pay. This is money from your employer. You can use this money to find new work, for example by following a course or training. You can also spend the money on something else. 

Right to compensation

You will only receive severance pay if you did not do anything to cause your dismissal and you did not hand in your resignation. Your employer must also not have offered you any other suitable work. If your temporary contract or agency contract ends and you do not get a new contract, you are also entitled to severance pay. If your CAO specifies a different payment, that payment applies instead of severance pay. 

No severance pay

In some cases, your employer does not have to give you severance pay, for example if you retire or the company goes bankrupt and there is no money left. 

Amount of severance pay 

The amount of severance pay you get depends on how long you worked for the company and how much you receive each month in the form of wages. You receive a third of your monthly wages for each year you have worked for the company.  

If you worked for less than a year or you will not work for part of a year, you will get part of the amount for a full year. This ensures you still get compensation for that work, too. The amount depends on how many more months you have worked. Calculate your severance pay here. Important! The calculator gives a rough idea. The actual amount might be different.