🇳🇱 Netherlands - Occupational Pension Benefit, Customer Overview

There are three pillars of pensions in the Netherlands:

  • The General Old Age Pension (AOW): This is the state pension and the employee will contribute to it through social security.
  • The occupational pension: This is a pension that is accrued through the employer and employee (where applicable).
  • Private pension schemes: These are funded by voluntary employee contributions through annuities or bank savings and insurances.

In addition to facilitating the state pension, Oyster provides a mandatory occupational pension for its team members. Employers cannot opt-out of this pension scheme. This article aims to provide an insight into the occupational pension benefit available to our Team Members in the Netherlands.

Benefit provider

Oyster works with the top insurance provider in the Netherlands called Nationale Nederlanden to administer the occupational pension scheme.

Benefits package

You can get more insights into the pension offering on Oyster's mypensioninsight page for the Netherlands.

There are 3 categories within the Occupational Pension Policy with Nationale Nederlanden:

  • Persoonlijk Pensioen Plan - Personal Pension Plan
  • Verzuimpakket Werkgever - Absence Package (Sick Leave)
  • WGA Hiaat Aanvullingszekerheid Uitgebreid - WGA Gap Insurance (Disability)

Summary of Benefits 

  1. Persoonlijk Pensioen Plan - Personal Pension Plan
    • This is a defined contribution plan.
      • The defined contribution rate is 15.4% (for 2024).
      • It is an employer cost.
    • There are additional components on top of the contribution premium of 15.4%. These are:
Component What it means Statutory or Optional Employer/Employee Cost
Partner Pension

A contribution towards your partner’s pension fund such that if you pass away before you retire, your partner will receive a pension.

We now have an “undefined” partner pension model. This means that all employees would receive a contribution into a partner pension fund even if they do not have a partner.

The partner's pension is calculated based on the total number of years a Team Member has prior to state retirement age (68)


Partner Pension = The maximum number of years of service X 1.16% X pension base.

The pension base = pensionable salary - state pension offset

Pensionable salary is capped at €137,800 (for 2024)
State pension offset is €17,545 (for 2024)

The premium is therefore different for each employee and cannot be expressed as a fixed percentage.

Note: This is a risk-based insurance which means that it will be cancelled once the Team Member’s membership in the pension scheme ends. Also, if the Team Member does not have a partner upon death, the money will never be utilised.

Statutory Employer cost
Orphan’s Pension Temporary payment to children following the passing away of the team member.

The children will be entitled to this pension only if the Team Member is still a member of the pension scheme upon death.

Orphan’s Pension = 0.232% X Pension base X Maximum pensionable years (for 2024)

Note: This is also a risk-based insurance which means that it will be cancelled once the Team Member’s membership in the pension scheme ends. Also, if there is no child upon death, the money will never be utilised.
Statutory Employer cost
ANW Gap Pension This is a temporary pension payment to a partner until they reach the required age to receive a state pension.

This is on an opt-in basis. If the team member requires this, they must pay for it themselves. It would be deducted from Team Member’s gross pay through payroll.

The sum insured increases annually. The premium is dependent on the age and gender of the Team Member; it is therefore a unique cost per Team Member.
Optional Employee cost
  1. Verzuimpakket Werkgever - Absence Package
    • In the Netherlands, a Team Member is statutorily eligible to sick pay for up to two years.
    • In the first 13 weeks of sickness, you would need select from one of the following options, how much the Team Member would be paid:
      • The statutory wage.
      • 70% of gross pay including holiday pay.
      • 100% of gross pay including holiday pay.
    • The Absence package is a sickness insurance to replace earnings lost due to long-term illness and this kicks off from the 14th week of sickness.
    • These are the components of this insurance:
Component What it means Statutory or Optional Employer/Employee Cost
Sick leave insurance

With this, Team Members have access to sick pay according to the policy below: 

  • First year at 100% of salary after a 13-week waiting period with a salary cap of EUR 125k.
  • Second year at 70% of salary with a salary cap of EUR 125k. Employer contribution to this is 1.4% in 2023.

Employer contribution to this is 1.4% in 2023.

Optional but we provide this. Employer cost
Occupational Health and Safety Services This service provides team member access to a company doctor (Arbodienst).

We work with Zorg van de Zaak.
Statutory Employer cost
  1. WGA Hiaat Aanvullingszekerheid Uitgebreid - WGA Gap (Disability) Insurance 
    • Under the State’s Labour Capacity Act (WIA) if a team member is still not (fully) at work after two years of illness and is also at least 35% incapacitated for work, they will receive a benefit under two schemes:
      • Return to work Partially Disabled (WGA)
      • Income provision for the Fully Disabled (IVA)
    • The WGA Gap Insurance, is an insurance used to minimize a team member’s loss of income in the event of a long-term disability. It is used to supplement the WGA benefit received from the State. The insurer supplements the team member's income up to a maximum of 70% of the social security salary, up to a cap of €71,628.
    • It is applicable if a team member is still not (fully) at work after two years of illness and is also at least 35% incapacitated for work.
    • This is an Employer cost calculated as 0.411% x total social security wage (up to €71,628).
    • It is not statutory but we offer this insurance as part of the occupational pension package.

How to enroll your Team Member in the Netherlands into the occupational pension?

This will be done automatically for you by our hire team during the team member’s onboarding. There is no action required on your part.

Coverage Brochures

FAQs

Is there coverage for dependents?

Dependents have access to the partner and orphan pension.

Can employers opt out of the occupational pension scheme?

No, they cannot. This is a mandatory benefit for payrolling companies.

Can employees opt out of the occupational pension scheme?

No, they cannot. They can only opt out of the ANW-gap pension element.

Is it possible for the employer to contribute more than 15.4%?

No, this is not possible. 

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