How to Create Payslips for Employees in the Netherlands

Why Dutch Payslips Matter

In the Netherlands, employers are legally required to provide employees with a payslip (loonstrook) each pay period. The loonstrook must clearly show how gross salary is broken down into net pay, including all taxes, social contributions, and other deductions. Failing to provide accurate payslips can result in penalties from the Belastingdienst (Dutch Tax Authority) and disputes with employees.

What Must Appear on a Dutch Payslip

Dutch law requires the following information on every loonstrook:

• Employer name, address, and payroll tax number (loonheffingennummer)
• Employee name, date of birth, and BSN (citizen service number)
• Pay period and payment date
• Gross salary
• Wage tax (loonbelasting) withheld
• Social insurance contributions (volksverzekeringen)
• Employee insurance premiums
• Pension contributions
• Holiday allowance accrual
• Net salary

Step 1: Determine Gross Salary

Start with the employee's agreed gross monthly salary. If the employee works part-time, prorate accordingly. Include any overtime, bonuses, or allowances that form part of taxable wages.

Step 2: Calculate Loonbelasting (Wage Tax)

The Netherlands uses a combined levy for income tax and national insurance contributions (loonheffing). For 2026, the progressive brackets are:

Taxable Income (Annual)	Combined Rate (Under 66)
Up to EUR 38,441	36.97%
EUR 38,441 - EUR 75,624	36.97%
Above EUR 75,624	49.50%

The first two brackets share the same rate because national insurance premiums (volksverzekeringen) are included in the lower brackets. Employers withhold loonheffing on a per-period basis using tables provided by the Belastingdienst.

Step 3: Apply Social Insurance Contributions (Volksverzekeringen)

National insurance premiums are embedded within the loonheffing rate for the first bracket. They cover:

Scheme	Purpose	Rate (2025/2026)
AOW	State pension	17.90%
ANW	Survivors' benefit	0.10%
WLZ	Long-term care	9.65%

These premiums are paid by the employee and are already factored into the combined loonheffing rate, so they do not appear as a separate line item on most payslips. However, best practice is to show them for transparency.

Step 4: Deduct Employee Insurance Premiums

Employer-funded employee insurance premiums (werknemersverzekeringen) are not deducted from the employee's gross pay, but they must be reported. They include:

Insurance	Purpose	Employer Rate (Approx.)
WW (AWf)	Unemployment	2.64% (permanent) / 7.64% (flexible)
WIA	Disability	~0.68% base + differentiated
ZW	Sickness	Differentiated by sector

Pension Contributions

Most Dutch employees participate in an industry or company pension scheme. Contributions are typically shared between employer and employee. A common split is one-third employee, two-thirds employer, applied to pensionable salary above the franchise (offset) amount.

Step 5: Account for Holiday Allowance (Vakantiegeld)

Dutch law entitles employees to a minimum holiday allowance of 8% of gross annual salary. This is usually accrued monthly and paid out in May. On each payslip, show the monthly accrual as a separate line so employees can track what they are owed.

Step 6: Calculate Net Pay

Subtract loonheffing, employee pension contribution, and any other agreed deductions (such as travel reimbursement clawbacks) from gross salary. Add any net allowances. The result is the net amount transferred to the employee's bank account.

Step 7: Generate the Payslip with CleverSlip

CleverSlip's Netherlands payslip template is designed to meet all loonstrook requirements. Select the Netherlands template, enter the employee's details and gross salary, and CleverSlip automatically structures the payslip with the correct fields, including loonheffing, pension, and holiday allowance accrual. You can download the result as a professional PDF ready to share with your employee.

Sample Deduction Breakdown

Line Item	Amount (EUR)
Gross Salary	4,000.00
Loonheffing (wage tax)	-1,060.00
Pension (employee share)	-160.00
Holiday Allowance Accrual	+320.00
Net Pay	3,100.00

Stay Compliant

Dutch payroll rules change annually. By using CleverSlip, you ensure your loonstroken stay up to date and legally compliant without needing to track every regulatory update yourself.