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UPDATED JUL 7, 2026💡 What to expect for employee benefits when you hire in the Netherlands through Toku. Dutch employees arrange their own mandatory basic health insurance, while Toku provides a mandatory occupational pension with a 14.7% employer contribution.
At a Glance
| Item | Detail |
|---|---|
| Health insurance | Statutory basisverzekering - arranged and paid by the employee |
| Occupational pension | Centraal Beheer PPI (defined contribution) - automatic from hire |
| Employer pension contribution | 14.7% of the pension base |
| Voluntary employee contribution | Up to 15.3% (tax-deductible) |
| Retirement age | 68 (flexible); maximum pensionable salary €137,800 |
| Survivor benefits | Partner and orphan pensions included |
Statutory Health Insurance (Employee-Arranged)
Under the Zorgverzekeringswet, everyone living or working in the Netherlands must hold Dutch basic health insurance (basisverzekering) from a Dutch-licensed insurer - this is the employee's personal responsibility, paid directly to their insurer; there is no employer premium. Employees must enroll within 4 months of starting work (premiums backdate), and international/expat plans don't qualify. If an employee stays uninsured, the state (CAK) can fine them and ultimately assign an insurer with premiums (€172.70/month in 2026) withheld from salary. Toku guides employees through this at onboarding.
Standard employer social charges (state pension, unemployment, disability, and the employer health levy) run through payroll as statutory wage costs.
Occupational Pension Through Toku: Centraal Beheer PPI
All employees aged 18+ (full-time and part-time) are automatically enrolled from their date of hire in a defined contribution plan with Centraal Beheer, invested in LifeCycle funds managed by Achmea Investment Management.
| Parameter | Detail |
|---|---|
| Employer contribution | 14.7% of the pension base (billed to client) |
| Voluntary employee contribution | Up to 15.3%, tax-deductible |
| Maximum pensionable salary | €137,800 |
| Pension base | Pensionable salary (12× monthly salary + holiday allowance) minus the statutory offset |
| Target retirement age | 68 (flexible) |
The plan includes survivor protections: partner pension before retirement (30% of pensionable salary), orphan's pension (6%, to age 25), partner pension after retirement (70% of the chosen old-age pension), an optional employee-paid ANW-gap insurance, and waiver of premium on long-term disability (contributions continue at no cost to the employee).
Costs & Who Pays
The 14.7% employer pension contribution is the main benefit cost on a Netherlands hire, billed to the client. Health insurance is employee-paid. Extra perks (allowances, equipment, etc.) fall under the Dutch WKR (work-related costs scheme) - exceeding the tax-free space triggers an 80% employer levy, so scope any custom Netherlands perks with Toku first.
Last verified July 2026. This guide is for general information and doesn't constitute legal or tax advice. Questions? Contact [email protected].