For employees and employers
Calculate transition payment 2026
For employees who are dismissed and employers who want to estimate the costs. One third of a gross monthly salary per full year of service from the first working day, plus a proportional part for the remaining period. At most €102,000 gross, or one gross annual salary if that is higher.
Transition payment
| Breakdown | Amount |
|---|
Explanation: calculate transition payment
The transition payment is the statutory severance payment in the Netherlands: 1/3 gross monthly salary per year of service from the first working day, pro rata for a partial year. Employers who want to see the total cost of an employee can also use the calculate salary costs.
Frequently asked questions
When is an employee entitled to a transition payment?
As a rule on dismissal or non-renewal of a contract at the employer’s initiative, from the first working day. There are exceptions, for example seriously culpable conduct by the employee or dismissal around state pension age.
What is the maximum transition payment in 2026?
As of 1 January 2026, the transition payment is at most €102,000 gross, or one gross annual salary if that is higher.
Does holiday allowance count towards the transition payment?
Yes. The monthly salary for the calculation consists of the base salary plus 8% holiday allowance, 1/12 of a fixed year-end bonus and fixed allowances, such as a fixed shift allowance.
Is the transition payment gross or net?
The transition payment is a gross amount. The employer withholds wage tax on it.
Can an employer get the transition payment back?
In certain situations, such as dismissal after long-term sickness, the employer can apply to UWV for compensation. This calculator does not include that.
Note: indicative, not advice
This calculation is an indication based on general statutory rules and 2026 rates and does not constitute tax, legal or payroll advice. The payment for the remaining days is approximated as (days × 12/365) months of salary; the official formula uses the salary actually received over those days. Not included: successive contracts (chain), partial dismissal, exceptions (e.g. dismissal at state pension age, seriously culpable conduct), different collective agreement schemes and compensation by UWV. No rights can be derived from this result.
Something wrong or missing? Let us know
Sources & values used
| Item | Amount | Status |
|---|---|---|
| Breakdown | 1/3 gross monthly salary per year of service, pro rata | statutory |
| Maximum as of 1-1-2026 | €102,000 gross, or 1 gross annual salary if higher | 2026 confirmed |
| Monthly salary | base + 8% holiday allowance + 1/12 fixed year-end bonus + fixed allowances | Dutch government |
| Annual salary for maximum | 12 × monthly salary (incl. the components above) | assumption |
- Government of the Netherlands – How much is the transition payment if I am dismissed? (in Dutch)
- UWV – Transition payment after dismissal or end of contract (in Dutch)
Checked on 6 October 2026.