Business insurances Netherlands. Dutch professional broker.

Business insurances Netherlands & pensions are not mandatory. But most businesses want to insure their employee benefits (pension, illness en disability) in the Netherlands and their business risks. Below you find a summary of some aspects of the insurances and risks in the Netherlands.

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Business insurances Netherlands: General liability

Business owners obtain general liability insurance to cover legal hassles due to accident, injuries and claims of negligence. These Business insurances Netherlands safeguard against payments as the consequence of bodily injury, property damage, medical expenses, liability claim, slander, the cost of defending lawsuits, and settlement bonds or judgments required through an appeal procedure. This kind of insurances are not too expensive (relatively) and is an important business insurance; a no-brainer. These insurances are a part of the Dutch insurances & Employee Benefits.

General (Third party) Liability application form

Business insurances Netherlands: Professional liability 

Business owners providing services should think about having professional liability/ Indemnity cover (additionally acknowledged as errors and omissions insurance). This form of liability coverage protects your business against misconduct, errors, and negligence in provision of services towards your customers. Depending on your profession, you may be required by your government to hold such a policy. Professionals are often obliged to procure malpractice insurance as a stipulation of practicing in most countries. This insurances are a part of the Business insurances Netherlands & Employee Benefits.

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The employee pension contribution 2022 calculation

A free example of a employee pension contribution.

employee pension contribution 2018

At the end of the month of January , everyone will receive a new payroll. For employers, it is therefore important (if applicable) to state the new own pension contribution. The calculation of the own contribution is as follows.

If there is an employee pension contribution in a pension scheme, then this contribution is often a percentage of the pension salary. (for example 4%). Pension salary = Full-time Annual Salary minus State pension franchise.  This fulltime Pension salary times the part-time percentage yields the correct pension salary. The employee pension premium contribution is thus a percentage of this salary.

Pension defined contribution - calculation

A calculation example employee pension contribution

  • Salary € 34,544, – fulltime
  • State pension franchise (2021) € 14.544, – fulltime
  • Pensionsalary € 20,000, -fulltime
  • Part-time percentage 80%
  • Pensionsalary € 16,000, –
  • Employee pension premium contribution (for example ) 4% per annum € 640, – per year
  • Per month € 53.33 employee contribution
  1. Maximum pensionable salary is set at aprox. € 112,000.
  2. Forgotten employee pension contribution. Has your own pension contribution been forgotten on the salary slip? An employee can make up for this by paying it immediately via the next pay slip. Sometimes an employer also offers the opportunity to spread this over a period of the next 12 months.
  3. Overpaying your own pension contribution. Please note that you will never be able to calculate your own contribution more than the premium is paid by the employer.
  4. “Pension Distance Declarations” are out of the question. Here are the reasons. If you want to register an employee for the pension scheme, then think about a number of things. The date in service is usually set for example on 1 January , while the actual date in service may be far in the past. This can be a problem especially for the survivor’s pension. In that case, too little survivor’s pension is insured. Clearly state the expiry of the waiver so that it is official and accurate.
  5. Partner definition. If in doubt, check the partner definition in a employee pension contribution. This differs from the tax partner definition. A pension fund or insurer sometimes makes specific demands on the partner definition.
  6. Registration. Always report changes to the pension advisor. They help and correct where necessary. You will always receive a confirmation. That is so easy because from then on we take care of everything.

Calculation defined contribution scheme

Information and Calculations

English contact form General (Third party) Liability application form Directors and Officers Indemnity Premium Hiscox CyberClear Insurance - premium IT Information Technology Liability - Premium Management Consultancy Liability = premium Pension defined contribution - calculation Audio - Dutch Business risks and insurances Complete list - Dutch Business Insurances

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How to create retirementplan in the Netherlands?

retirementplan in the Netherlands

Employees normally retire at the age of 68 year so there is a need for a retirementplan in the Netherlands. They can choose to retire earlier or later, perhaps while continuing to work part-time, or to exchange the dependant’s pension for a higher retirement pension or vice versa. The options depend on your pension regulations.

Calculation pension contribution employee (dutch)

Calculation defined contribution scheme

How to create retirementplan in the Netherlands?

The three parts of a retirement plan. Retirement plan is a term that covers a set of financial arrangements providing your employee with an income upon retirement. A retirement plan generally consists of three parts:

  1. A statutory state pension: from the age of 67-68, everyone who lives in the Netherlands receives a state pension under the General Old Age Pensions Act (Algemene Ouderdomswet AOW). State pension age calculation.
  2. An employer-sponsored retirement pension: under the administration of a pension insurer, the contributions paid by you and taken from your employee’s paycheck accrue to the retirement benefit of your employee. They provide information on the target pension and accrued value in the annual uniform pension statement (UPO). A retirementplan in the Netherlands is a transparent way to create excellent employee benefits.
  3. A supplementary pension: your employee may have made private arrangements to supplement his pension through savings, investments or an annuity from an insurance company. That is how to create retirementplan in the Netherlands.

Pension management

Good pension management depends on finding the right balance between competing interests such as attractive pensions, costs, certainty, indexing, risk and manageability. At the same time, proper account has to be taken of the interests of both the employer (the sponsor) and the employees. We have a wide-ranging experience of the various solutions that can be deployed to answer questions such as:

• How can organisations use their pension scheme to differentiate themselves from their labour market competitors?
• How can we minimise the risks and costs of their scheme?
• How can we offer participants attractive pensions in return for acceptable contributions?
• How can regulations and pension schemes be made comprehensible and operate transparently?

We are an independent pension broker in Amsterdam. Below you find a form to get in touch.

Extra information about the 30% ruling for expats

If certain conditions are met, expatriates may be eligible for the 30% rule. This arrangement means that there is a tax-free allowance which will be given up to 30% of wages. The tax free fee is for the extra cost of the temporary residence of the expat in the Netherlands. This allowance is tax not paid.

In principle you usually do not build up pension on the tax-free reimbursement of the 30% rulers. The pension benefits granted by your employer are based on your taxable salary; thus lower since the “top” is taken off as a tax free reimbursement.


Information and Calculations

English contact form General (Third party) Liability application form Directors and Officers Indemnity Premium Hiscox CyberClear Insurance - premium IT Information Technology Liability - Premium Management Consultancy Liability = premium Pension defined contribution - calculation Audio - Dutch Business risks and insurances Complete list - Dutch Business Insurances

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30% Ruling special tax regime for expats

30% rulingThe Netherlands has a special tax regime for expatriates, the so-called 30% ruling, which provides a substantial income tax exemption of up to 30%, for a period of up to 120 months. This is viewed as a reimbursement for the extra costs involved in living abroad.

  • According to this rule, the employer may grant the employee a tax-free allowance of up to a maximum of 30% of his or her remuneration. The remuneration includes incidental and flexible forms of income such as bonus payments and stock options. Termination and pension payments are excluded.
  • In order to qualify for the 30% ruling, the following conditions must be met:
  • The employer must make a reasonable case that the employee possesses specific expertise that is not available, or is scarce in the Dutch labor market
    • The employee must be recruited from abroad
    • The employer must be a Dutch wage tax-withholding agent
    • The exemption is available for a period of 10 years (120 months).
  • After a period of five years, the tax authorities can request that the employer demonstrate that the employee still meets the conditions.

More information

Gerrit-Jan Doorneweerd, registered Pension Advisor,
Amsterdam, +31 (0)20 6200825
Mobile, 0651 471 9 – six – five. (Also in the evening and weekends.)
Please give me a call


Risks and your pension

toetsenbord met koptelefoon

The amount of your pension is not fixed and may change. In addition to changes in your private or work situation, there are also developments which are outside your control. These developments can affect the amount of your pension. We would like to explain these risks and their influence on your pension to you.

Inflation risk
Inflation decreases the value of money each year. This also applies to your pension. Think about it: you can buy less with €100 than you could ten years ago. Therefore your pension loses some of its purchasing power. You may think now that your pension will be sufficient, but be aware that your pension will lose some of its purchasing power due to inflation.

Investment risk
Your pension may (partly) be used for investments. Investing is never without risk: at this moment you do not yet know the final value of your investments. Depending on the choices made by your employer, you yourself can decide how much risk you want to take. This allows you to determine your own risk profile.

Interest risk
Are you about to retire? The pension amount you will receive does not only depend on the value of the investments, but also on the interest rates at that time. The lower the interest rate at that time, the lower the pension will be.

Longevity risk
Are you about to retire? The pension amount you will receive does not only depend on the value of the investments, but also on the life expectancy of the Dutch population. People are living longer and therefore receive pension for a longer period of time. The pension will be lower because we have to use the same amount of money to pay out your pension for a longer period of time.

Information and Calculations

English contact form General (Third party) Liability application form Directors and Officers Indemnity Premium Hiscox CyberClear Insurance - premium IT Information Technology Liability - Premium Management Consultancy Liability = premium Pension defined contribution - calculation Audio - Dutch Business risks and insurances Complete list - Dutch Business Insurances

How to start a pension scheme in the Netherlands?

‘With which parameters are pension scheme(s) managed?’

For the aspects of pension management, we will only focus on pillar 2 the employee benefits. There are a number of parameters that can be used to influence the retirement provision. We start with parameters with respect to the pension scheme in the Netherlands . Secondly, execution parameters can be used to influence the level of the retirement provision.

Parameters to start a pension scheme in the Netherlands 

The level of a pension depends on a number of parameters. These parameters can be seen as ‘controls’ that can be adjusted, and include:

  • Contribution: the amount of paid contribution can vary.
  • Benefit: the pension benefit paid to beneficiaries can be higher or lower.
  • Accrual: more or less pension can be accrued.
  • Retirement date: people can stop working and retire earlier or later.
  • Risk: the level of risk that is taken with investing can differ.
  • Indexation (target)/ inflation-proof pension. The amount of the indexation that will be paid can vary. The amount of indexation can depend on profit sharing.
  • Guarantees: more or less guarantees can be granted.

Employer and employees & start of the pension scheme in the Netherlands

Pension commitments are agreed between employer and employees. In the Netherlands organizations of employers and sometimes unions make the agreements together with AFM-registered pension advisors.

After the agreement has been made, the contract will be executed by pension institutions, like insurers or pension funds. The pension institutions do have influence on the aspects listed above. All these aspects affect the final pension to be achieved.

Contribution affects the active members. Indexation affects the sleepers and pensioners and possibly the active members. The best interests of all the people involved should be considered in the decision-making.
In principle, an insurer cannot adjust the controls in the interim: an insurer must comply with the conditions in the contract. An insurance contract is agreed for a number of years.

If the insurance contract expires of the legislation changes, the conditions can be adjusted again.

If you think I might be able to help you or your business
Gerrit-Jan Doorneweerd, registered Pension Advisor,
Amsterdam, +31 (0)20 6200825
Mobile, 0651 471 9 – six – five. (Also in the evening or weekend)
Please give me a call

Information and Calculations

English contact form General (Third party) Liability application form Directors and Officers Indemnity Premium Hiscox CyberClear Insurance - premium IT Information Technology Liability - Premium Management Consultancy Liability = premium Pension defined contribution - calculation Audio - Dutch Business risks and insurances Complete list - Dutch Business Insurances

Fat pension cats

Dutch minister of finance Wouter Bos has withdrawn a measure that broke with the so reverse-rule (‘omkeerregeling’) which had been designed to limit tax benefits on pension contributions, but final pay pensions of above €500,000 will instead now be levied. A nine-hour debate was held in the Hague last week about fiscal measures against fat cat salaries and led Wouter Bos to withdraw his earlier regulation which saw the Dutch ‘omkeerregel’ stopped for pensions above €185,000.

The ‘omkeerregel’ was introduced as the Dutch fiscal treatment of pension accrual and was intended to allow pensions savings contributions to be tax-free up to a certain premium levels and conditions, while the benefits paid out are taxed. But ministers were unhappy with a proposal unveiled in September last year to impose a limit on controbutions, and announced in December 2007 they would reverse the plan ahead of its 1 January, 2009 implementation.
The second change unveiled by the minister now means final salary pensions of above €500,000 will now be levied with a 15% tax, to prevent highly-paid managers from holding untaxed money via their final pay pension plan. Pieter Omtzigt MP of the Dutch Christian Democrats told IPE his party supports both measures.
“Almost everybody in the Netherlands now has an average pay pension, so it is not very fair if the directors agree to a final salary pension and then inject it with a couple of million.” (source Ipe)


Dutch Occupational Pension System. The conditions and function.

The second source of pension benefit in the Netherlands is Dutch occupational pension scheme. These pensions are legally bound by the new Pensions Law (PW) of 2007. This gives some limiting conditions which have to be fulfilled, for example requirements with regard to the funding of the scheme.

Dutch occupational pension schemes are schemes where the employer makes a commitment, as part of the terms of employment, to provide pensions and other post-retirement benefits to employees in retirement. The Dutch occupational pension schemes can be sponsored by a single employer or through industry- wide or collective labour agreements.

The Dutch Occupational Pension Scheme (The Second Part)

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Occupational Pension Schemes and the Dutch Pension System.

The second source of the Dutch pension system benefit in the Netherlands are the occupational pension schemes. These pensions are legally bound by the new Pensions Law (PW) of 2007. This gives some limiting conditions which have to be fulfilled, for example requirements with regard to the funding of the scheme.

Occupational pension schemes are schemes where the employer makes a commitment, as part of the terms of employment, to provide pensions and other post-retirement benefits to employees in retirement. The occupational pension schemes can be sponsored by a single employer or through industry- wide or collective labour agreements.

[Read more…] about Occupational Pension Schemes and the Dutch Pension System.