Dutch payslip explained: how your salary works as an expat

Understanding your Dutch payslip can feel overwhelming at first. The Netherlands uses a payroll tax system where income tax, social security, pension and other deductions are processed automatically by your employer. This guide explains every element on a Dutch payslip so you know exactly how your salary transforms from gross to net.

Want to calculate your actual net income? Use the Dutch Income Tax Calculator for a personalised breakdown.

Gross salary (bruto)

Your starting point before any taxes or deductions.

Your bruto salary is the total amount agreed in your employment contract. Dutch contracts typically specify annual bruto salary including holiday allowance. The bruto salary is used to calculate payroll tax, pension contributions and social security premiums.

Common bruto elements include:

• Monthly gross salary
• Holiday allowance (8%)
• Bonus payments
• Travel allowance or remote work compensation

If your contract includes the 30% ruling, your bruto amount is split into a taxable and a tax-free part. Learn more in our guide to the 30% ruling.

Payroll tax (loonheffing)

Income tax and national insurance combined into one deduction.

The Netherlands uses a progressive tax system. Your employer automatically withholds payroll tax from your bruto salary. This includes both income tax and national insurance contributions.

The two income tax brackets for 2025 are applied directly on your payslip. To understand how these brackets work, see our cost of living guide and the Income Tax Calculator.

The payroll system ensures you usually do not need to pay additional tax at year-end, unless you have multiple income sources.

General tax credit and labour tax credit

Automatic reductions to your tax burden.

Every employee in the Netherlands is entitled to specific tax credits. Your employer automatically applies them. The two main ones on your payslip are:

• General tax credit (algemene heffingskorting)
• Labour tax credit (arbeidskorting)

These reduce the amount of payroll tax deducted each month. The higher your salary, the smaller some credits become. Your payslip shows the amounts applied each pay period.

Pension contributions

Most employers offer a pension scheme deducted automatically.

Many Dutch employers provide a pension scheme where both employer and employee contribute. Your share is automatically deducted from your bruto salary. This deduction is not a tax but a long-term saving for your retirement.

On your payslip you may see:

• Employee pension contribution
• Employer pension contribution
• Pensionable salary

Note: pension is calculated on your full bruto salary, even if you benefit from the 30% ruling.

Health insurance contribution (Zvw)

This employer-paid contribution does not reduce your net salary.

The Dutch healthcare system requires employers to pay an income-related contribution to the Health Insurance Act (Zvw). This amount is paid by your employer directly, not deducted from your net salary. It appears on your payslip for transparency.

To learn how health insurance premiums work, see the official information on Government.nl.

Other monthly deductions

Additional items depending on your employment contract.

Depending on your situation, your payslip may also include:

• Travel card subscriptions
• Company bicycle lease
• Meal or lunch compensation
• Voluntary additional pension contributions
• Company savings schemes

Most employers include an explanation at the bottom of the payslip. If anything is unclear, HR or payroll can clarify each item.

Net salary (netto)

The amount deposited into your bank account.

Your netto salary is what arrives in your Dutch bank account after all deductions. It is influenced by tax brackets, tax credits, pension contributions and, if applicable, the 30% ruling. For a full take-home pay calculation, use the Dutch Income Tax Calculator.

If you need help opening a Dutch bank account quickly, see our guide on bank accounts in the Netherlands.

Before your first payslip: essential steps for expats

To ensure your first payslip is correct, make sure you:

• Register your BSN after arrival
• Open a Dutch bank account
• Sign up for health insurance
• Inform payroll if you have 30% ruling approval

Not sure what to do first? Generate a personalised relocation plan with Expat Buddy or start with the Moving to the Netherlands checklist.

Understanding your payslip helps you take control of your income, plan your budget and make informed decisions as you start your life in the Netherlands.