Benchmarking Employee Benefits in the Netherlands for 2020

Request Asinta’s Market and Benchmark Insight Report for the Netherlands and get the essential information you need to move forward in your decisions about employee benefits in the country. The report reviews statutory benefits, insured benefits, fringe benefits and perks, plan setup, and onboarding.

The following is an excerpt.

The Netherlands has a comprehensive system of social security insurance and benefits. As part of the employment terms and conditions, employers offer supplemental employee benefits on top of the government’s arrangements. Most employees in the Netherlands receive coverage through collective labor agreements (CLA), mostly at the industry level. For the question of whether a CLA is applicable to the company, the scope of the business activities of the respective company is relevant.

If Collective Labor Agreements (CLAs) do not contain any mandatory arrangements, Defined Contribution (DC) pension schemes are the usual choice here.

• • In DC schemes, employers make available an annual contribution to employees for the purpose of accruing a pension. The defined contribution depends on the age and salary of the individual employee.
  • What is known as the AOW-franchise is a salary deduction (in 2020, at least € 14,167). What remains is the pensionable amount.
  • Subsequently, the defined contribution calculation multiplies the premium percentage by the pensionable amount. The premium percentage base uses a graduated scale for contributions (selected by the employer).
  • The pension contribution grows through investment, and as of the employee’s retirement date, the lifelong payment of a retirement and partner pension is purchased using the accrued capital.

 

If you have further questions about benchmarking employee benefits in the  Netherlands, please contact Asinta, and we will put you in touch with Schouten Zekerheid.