Transition Payment (Netherlands)
Updated November 2026 · Free · No sign-up
Calculate the transitievergoeding — the Netherlands’ statutory transition payment: 1/3 of a month’s salary per year of service (pro-rata to the day), from the first day of employment, owed on every employer-initiated termination, capped (~€98,000 in 2026-era terms or one year’s salary if higher — verify).
Quick answer: Transitievergoeding = (gross monthly salary incl. 8% holiday allowance + fixed components) × years of service ÷ 3 — accruing PRO-RATA from day one (even in probation). Owed on employer-initiated dismissal, non-renewal of fixed contracts, and genuine constructive routes — not on your own resignation.
The Formula (Post-WAB, 2020+)
1/3 gross month per service year, computed pro-rata to the day — no tenure threshold (the old 2-year wait died in 2020), no age bumps (the over-50 uplift died too). The salary base: gross month + 8% vakantiegeld + fixed year-end payments ÷ 12 + structural overtime/shift averages. Cap: ~€98,000 (indexed annually — verify) or one year’s salary for higher earners.
When It’s Owed
| Owed | Employer-initiated termination (UWV route, court dissolution), fixed-term NON-RENEWAL (employer’s choice), dismissal during probation by employer, and serious-culpability constructive cases |
| Not owed | Your resignation, mutual-consent agreements (vaststellingsovereenkomst — but you NEGOTIATE at least this amount there), summary dismissal for serious cause, retirement-age termination |
| Extra | Courts can add the billijke vergoeding (fair compensation) on top for seriously culpable employers — uncapped |
Worked Example
€4,000 salary (+8% = €4,320 base), 7.25 years: 4,320 × 7.25 ÷ 3 = €10,440. A 6-month fixed contract not renewed: 4,320 × 0.5 ÷ 3 = €720 — small, but automatic; flex workers’ chains of non-renewals each trigger it.
Practice Notes
Mutual-consent exits (the Dutch standard) price the settlement AT or above the transition payment + notice — the formula is your negotiation floor, not ceiling; the 14-day revocation right on settlement agreements is unwaivable. Tax: severance is ordinary income (the old stamrecht routes are gone) — timing across years matters. Claims: 3 months after employment ends to petition the court — short and strict. Not legal advice.
Frequently Asked Questions
How is the Dutch transition payment calculated?
One-third of a gross month per year of service, pro-rata to the day from day one — base includes holiday allowance and fixed components; capped at ~€98k (indexed) or a year’s salary.
Do fixed-term workers get it?
Yes — employer-chosen non-renewal triggers the pro-rata payment, even after a single short contract.
Is it owed if I resign?
No — nor in true mutual-consent exits, though settlement negotiations use the formula as the floor (plus the fictive notice period).
Can I get more than the formula?
Courts add billijke vergoeding (uncapped fair compensation) where the employer acted seriously culpably — and negotiated settlements routinely exceed the statutory number.
What is the claim deadline?
Three months from the end of employment to petition the subdistrict court — among Europe’s shortest severance clocks.
✓ Formula verified • Last updated: November 3, 2026