|Dutch national health and social security insurance|
Like all major developed countries The Netherlands has a social security system for its population. The Dutch social security system is split into a national social security (volksverzekeringen) for all residents of The Netherlands and an employee social insurance specifically for employees working in The Netherlands.
The national social security includes:
Payment into the national social security system
Only residents of The Netherlands and non-residents subject to Dutch wage taxes pay into the national social security system if they receive income from employment or from any other source. The premiums are withheld when the income is paid out or paid by regular tax assessment if no withholding occur (business owners).
The taxable base is the income received but only income up to € 34.300 (2019) is taxed for national social security purposes. The rate is 27,65% for all national social insurances combined (with the exception of the national health insurance). The maximum premiums payable are therefore 27.65% * € 34.300 = € 9.483.
- Premiums for the employee social insurance are paid by the employer only.
- Child benefits (AKW) are paid for by the government. No contributions are levied.
National Health insurance
Residents of The Netherlands are entitled to national health insurance which is a mandatory insurance. The health insurance premiums are paid by the employer. In addition, all residents of The Netherlands pay a mandatory premium to a health insurance company. Residents are able to chose the insurance company. The price of the insurance premium will depend on the insurance company and the type of health insurance coverage.
Payment of national health insurance
Premiums for the Dutch national health insurance are paid for by the employer and by business owners. Residents of The Netherlands who receive foreign employment income are taxed for national health insurance as well. (the dutch authorities cannot tax an employer who is resident abroad). Both the resident employed abroad and the business owner receive a seperate tax assessment for health insurance. The taxable base is the income received but only up to € 55.927 (2019) The rate is 6,95% for employees and 5,70% for business owners. The maximum amount payable is therefore 6.95% * € 55.927 = €3.612 for employees.
Please note that European Union Law or Social security treaty law may allow a person to continue to be insured for social security purposes in their home country while working in The Netherlands. In addition, Dutch social security may apply to certain employees who work abroad for a Dutch employer.
Please contact us if you have any questions relating to Dutch social security, or Dutch national health insurance.