Deductions

Your employer is sometimes allowed to deduct part of your wages. This page explains the deductions that may be made and the rules that apply.  

What are deductions? 

Deductions are amounts that are taken out of your wages. Your employer deducts these amounts before paying your net wages. In this way, some of your money is used to pay for taxes, health insurance premiums or your pension. 

Compulsory deductions 

Your employer deducts money from your wages every month. This is required by law. The deductions are as follows: 

• Tax and insurance: This is money that is paid to the government. This money pays for things such as your AOW (state pension), the benefit you receive if your partner dies (surviving dependants’ benefit - ANW), and the costs of care (specifically care provided under the Long-Term Care Act or WLZ). 
• Contribution towards costs of health insurance: Sometimes your employer also deducts a contribution towards the costs of health insurance. This depends on your situation. 
• Pension: If you need to pay towards your pension, your CAO or contract will say so.

These deductions are always shown on your payslip. 

 

Deductions for healthcare and rent 

If you come to work in the Netherlands, you need to have health insurance and housing. Sometimes your employer helps with this. In that case, these costs will also be deducted from your salary.  

What deductions are made by your employer? 

Normally, you should get the full minimum wage. There are two exceptions to this: 

• Your employer may deduct money for health insurance. The maximum amount that can be deducted is €174,90 per month. This insurance covers your medical costs when you are sick. 
• Your employer may also deduct money for rent. The maximum amount that can be deducted is 25% of your gross minimum wage. 

This is allowed only if: 

• You give written consent. 
• The amounts are clearly shown on your payslip. 
• The property is of good quality, for example it has received certification. 

What will change? 

The government wants employees to be less dependent on their employer. For this reason, the possibility of deducting the costs of rent from wages is being gradually phased out. 

• From 1 January 2026: less money will be deducted from your wages. 
• By 2030: deductions for housing costs will end. 

Employers may still arrange accommodation, but they will no longer be able to deduct it automatically from your pay. 

Why is this change being made? 

Some employers use deductions to make extra money. In addition, some migrant workers lose their home if they lose their job. That is not the intention. 

The government wants: 

• Better protection for migrant workers. 
• Better control of living and working conditions. 
• Less abuse of rules. 

What will not change? 

• Employers will still be able to deduct premiums for your health insurance. 
• The Netherlands Labour Authority will continue its monitoring work. 
• The government is making new rules to ensure proper housing for migrant workers. 

 

What you need to check 

Check your payslip to make sure everything is correct. You should see: your gross wages, how many hours you work, and what deductions have been made. Your employer may only make certain deductions from your wages, such as deductions for housing (maximum deduction of 25% of the minimum wage) and health insurance (maximum deduction of €174,90 per month in 2026). Your employer must also have your written consent for this. You will receive a new payslip if anything changes. 

What you can do if your employer deducts too much from your wages 

Talk to your employer first  

Ask for an explanation of the deductions. Also ask for a copy of the consent form (power of attorney) and a statement of the costs incurred. Sometimes a mistake has been made that can be easily fixed. 

Get help from Het Juridisch Loket or a trade union  

If you cannot agree on a solution with your employer, you can contact: 

• Het Juridisch Loket: provides free help if you have problems with your wages or contract. 
• A union such as FNV or CNV: can provide support with communicating with your employer. 

Report abuses to the Netherlands Labour Authority 

If you think your employer is not following the rules (for example, because your employer is making deductions without your consent, or is deducting more than it is allowed to), you can report this to the Netherlands Labour Authority. It can check the situation and will fine your employer if appropriate. 

Seek support from migrant worker organisations 

There are special helplines, such as FairWork, Work in NL information desks and local union desks, that are experienced in dealing with situations like this. They can help you in several languages.