Dutch statutory severance pay (transitievergoeding) is 1/3 of your gross monthly salary per year of service, up to a maximum of €102,000 in 2026. That formula appears on a hundred different calculators, and they all stop at the same point: the gross figure.
What no calculator shows: what that amount means if you're considering stopping work early. At €30,000 net against €30,000 of annual spending, severance pay buys roughly one year of bridge time. At €50,000 net, nearly two years.
The formula
Since the Balanced Labour Market Act (WAB), you accrue severance pay entitlement from your first working day, regardless of age or contract type. The calculation:
1/3 gross monthly salary (including holiday allowance) × years of service
Remaining months and days are calculated pro rata, but the core is this one figure.
| Monthly salary | 5 years | 10 years | 15 years | 20 years |
|---|---|---|---|---|
| €2,500 | €4,167 | €8,333 | €12,500 | €16,667 |
| €3,500 | €5,833 | €11,667 | €17,500 | €23,333 |
| €5,000 | €8,333 | €16,667 | €25,000 | €33,333 |
There's no cap on years of service, and there's no longer a separate higher accrual rate for over-fifties; that rule was abolished under the WAB. Everyone accrues the same percentage, from day one.
The maximum
The statutory maximum is €102,000 gross in 2026, or a full gross annual salary if that's higher. That maximum is reset annually on 1 January by the Ministry of Social Affairs and Employment, based on wage development. It was €94,000 in 2024 and €98,000 in 2025.
At lower salaries, you only reach that maximum after very many years:
| Monthly salary | Years to the maximum |
|---|---|
| €5,000 | 61 years |
| €7,000 | 44 years |
| €8,500 | 36 years |
For most people the maximum is therefore theoretical. The formula itself almost always determines the amount.
Gross to net
Severance pay counts as income from former employment and is taxed via the special rate. That isn't a separate, more favourable rate; it's a calculation method preventing a one-off amount from pushing your regular salary into a higher bracket.
As a rough indication, an employee typically keeps 65 to 70 percent net of the gross amount, depending on other income that year:
| Gross | At 65% | At 70% |
|---|---|---|
| €10,000 | €6,500 | €7,000 |
| €25,000 | €16,250 | €17,500 |
| €50,000 | €32,500 | €35,000 |
| €75,000 | €48,750 | €52,500 |
This is an indication, not a calculation. Your actual percentage depends on your total annual income, whether you find new employment in the same year, and your personal deductions. Have your own situation calculated by your employer or an adviser before relying on it.
The translation no other page makes: bridge years
Here's where it gets interesting for anyone following this series.
Severance pay is, for many people, the largest one-off amount they ever receive. The question isn't just what to spend it on, but how much time it buys if you're considering stopping work early or bridging a period without income.
Setting net severance pay against different spending levels, at a 4% real return:
| Net payout | At €24,000/yr | €30,000/yr | €36,000/yr |
|---|---|---|---|
| €15,000 | 0.65 years | 0.52 years | 0.43 years |
| €30,000 | 1.31 years | 1.04 years | 0.86 years |
| €50,000 | 2.22 years | 1.76 years | 1.46 years |
At €30,000 net against €30,000 of annual spending, the payout buys roughly a year of bridge time. That's not an abstract figure; it's the time you could cover between two jobs, or the start of a longer break, without drawing on the rest of your wealth.
Comparison with the early-exit scheme
Anyone who's read the article on the early-exit scheme will recognise the method. That scheme delivers a capital equivalent of roughly €51,883 across three years.
Severance pay of a comparable net size buys roughly the same amount of bridge time: at €51,883 net against €30,000 of annual spending, that's 1.83 years, in the same order of magnitude as the scheme's own period.
That's no coincidence but a consequence of the same arithmetic: both are a one-off or temporary capital sum converted into months or years without work. The difference is that the scheme is a running monthly payment you apply for, while severance pay is a one-off sum that falls to you on redundancy, often at a moment you weren't counting on.
What this means if you're offered a settlement agreement
Facing the choice of agreeing to termination through a settlement agreement, this is exactly the figure to bring to the table.
An employer often offers an amount around the statutory severance pay, sometimes slightly more. Before signing, it's useful to look not just at the gross or net amount, but at what that amount means for your own timeline: does it buy you six months of extra room to job-hunt without financial pressure? A year? More?
That figure changes the conversation. "Is €35,000 enough" is a question with no anchor. "Does €35,000 buy me eight months of room at my current spending, and is that enough time to find something new" is a question you can actually answer.
What the payout isn't
A few things at risk of being conflated.
It isn't a pension replacement. Severance pay is meant to bridge the transition to other work, not to close your pension gap. Use it as bridge capital towards your state pension age anyway, and calculate whether it's sufficient using the method in the article on your FIRE number.
It isn't always owed. Summary dismissal for serious misconduct by the employee forfeits the entitlement. Voluntary resignation generally forfeits it too, except where the employer itself acted seriously culpably.
It's negotiable in a settlement agreement. The statutory formula is a floor, not a fixed amount. Negotiation can secure a higher sum, often in exchange for a faster or smoother termination.
How Gylder fits in
Severance pay is a snapshot: an amount landing in your account on a given day, then disappearing into your general wealth if you don't label it separately.
Gylder counts it into your total wealth the moment it arrives, alongside your bank, broker, crypto, precious metals and your property with the mortgage underneath. With the bridge calculator you then enter your own spending, your state pension date and your occupational pension, and see whether the amount you received is enough for the plan you have in mind, rather than estimating it by feel.
What this doesn't tell you
The maximum changes annually. In 2026 it's €102,000. Check the current figure for a redundancy in a later year.
The net calculation is a rough indication. Your actual percentage depends on your total annual income and personal situation. Have this calculated properly.
Employers can deduct certain costs. Training or outplacement costs may, under strict conditions, be deducted from the amount payable.
This isn't legal or tax advice. With a settlement agreement, a legal review is often worthwhile, especially for larger amounts.
Frequently asked questions
How do I calculate my severance pay? 1/3 gross monthly salary, including holiday allowance, per full year of service. The remainder is calculated pro rata. The maximum is €102,000 in 2026, or a year's salary if higher.
How much do I keep net of my severance pay? As a rough indication, 65 to 70 percent of the gross amount, via the special rate. Your actual percentage depends on your total annual income.
Can I use my severance pay to stop working early? Yes, as bridge capital for a temporary period. At €30,000 net against €30,000 of annual spending, that buys roughly a year. For structurally stopping earlier you need more; calculate your full target.
When am I not entitled to severance pay? On summary dismissal for your own serious misconduct, and on voluntary resignation without serious misconduct by the employer.
Is the statutory amount the maximum I can get? No, it's a statutory floor. A settlement agreement can secure a higher amount.