The Two-Year <a href="https://www.government.nl/topics/sickness-benefit" rel="noopener" target="_blank">Sick Leave</a> Rule in the Netherlands

Eva Jongepier - employment lawyer in the Netherlands
April 23rd, 2026

The Two-Year Sick Leave Rule in the Netherlands

The Two-Year Sick Leave Rule (Loondoorbetalingsverplichting) in the Netherlands

The Netherlands operates one of the most employee-protective sick leave systems in the world. Under Article 7:629 of the Dutch Civil Code, an employer is obliged to continue paying wages for up to 104 weeks (two years) when an employee is unable to work due to illness. This loondoorbetalingsverplichting (continued wage payment obligation) applies regardless of whether the illness was caused by work or by circumstances outside work.

The minimum statutory entitlement is 70% of the last-earned wage in each of the two years. Many collective labour agreements (cao's) and individual employment contracts improve on this minimum, providing 100% in the first year and 70% in the second. However, the payment may never exceed the maximum daily wage under the Wet financiering sociale verzekeringen.

Conditions and exceptions under Dutch law

The employer's obligation to continue paying wages is not unconditional. Article 7:629(3) of the Dutch Civil Code allows the employer to suspend or withhold sick pay in specified circumstances, including where the employee:

Deliberately caused the illness or disability.
Refuses to cooperate with the bedrijfsarts or with the plan van aanpak under the Wet verbetering poortwachter.
Fails to comply with reasonable sick leave notification rules.
Refuses suitable alternative work without valid medical grounds.
Obstructs recovery by engaging in activities incompatible with returning to health.

Before suspending wages, the employer must formally warn the employee and give them an opportunity to comply. An immediate suspension without warning exposes the employer to claims for full salary including the suspended amounts.

After Two Years: WIA and Dismissal

At the end of the 104-week period, the employment protection against dismissal (opzegverbod bij ziekte) expires if the employee has made a WIA claim or is eligible for a WIA assessment. The employer may then request UWV permission to dismiss. The employee's entitlement to WIA benefit depends on the degree of remaining incapacity. For details, see our pages on WIA disability benefit, reintegration obligations, and the company doctor. An employment lawyer in the Netherlands can advise on the transition from sick leave to dismissal.

Article 7:629 of the Dutch Civil Code stipulates that sick pay must be at least 70% of salary up to approximately EUR 50,000 per year, and at least the full statutory minimum wage during the first year of illness. In practice, most Dutch collective agreements provide for 100% continuation of pay during the first year. For employees performing exclusively domestic personal services for fewer than four days per week, and for employees who have reached AOW retirement age, the sick pay entitlement is limited to six weeks under Article 7:629(2) of the Dutch Civil Code. The two-year period may be extended by up to one year if the employer was negligent in its reintegration obligations under Article 7:629(11) of the Dutch Civil Code.

Frequently Asked Questions

Does the two-year sick pay obligation apply to all employers, including small businesses?

Yes. Article 7:629 of the Dutch Civil Code applies to all employers regardless of size, including sole traders with a single employee. Small employers often insure this risk through a private insurer (via a verzuimverzekering), as the two-year obligation can be financially crippling for small businesses. The obligation to follow the Wet verbetering poortwachter applies equally to all employers.

What happens if an employee becomes ill again shortly after returning to work?

If an employee falls ill again within four weeks of returning to work, the new sick period is treated as a continuation of the original illness for the purpose of the 104-week calculation. This prevents the employer's obligation from being reset by a brief return. If more than four weeks have passed, a fresh 104-week period begins for a new illness, even if it is related to the previous one.

Can the employer claim reimbursement from the government for sick pay?

In certain cases, yes. The government provides compensation under the Ziektewet (ZW) for sick leave caused by pregnancy, organ donation, or work-related illness in some categories. Employers who are affiliated with the UWV as risk-bearer (not self-insured) may be entitled to ZW payments in specified situations. Most employers carry private verzuimverzekering insurance to manage the financial risk.

Is the two-year rule different for temporary employment contracts?

For fixed-term contracts, the obligation runs until the contract expires. The employer need not extend a fixed-term contract because of illness, but may not terminate the contract early on grounds of illness. Once the fixed-term contract ends, the employee may become entitled to sick pay under the Ziektewet directly from the UWV if they remain ill. Agencies and employees on payroll constructions face different rules depending on the applicable phase and cao.