Free online calculator for the Dutch transition payment (transitievergoeding): the statutory severance under Article 7:673 of the Dutch Civil Code, owed upon dismissal, redundancy or non-extension of a fixed-term contract. Applies the 2026 cap (EUR 102,000 or one annual salary if higher) and the salary-base rules of the Besluit loonbegrip.
When are you entitled to a transition payment under Dutch law?
Every employee in the Netherlands is entitled from the first day of employment when the employer ends the contract or does not extend a fixed-term contract, regardless of length of service, age or position. Voluntary resignation generally bars the entitlement, except where it is induced by serious employer misconduct.
Severance after dismissal, redundancy or non-extension
The same formula applies to regular dismissal through the kantonrechter or UWV, collective redundancy, and non-extension of a fixed-term contract. Where the employer is seriously culpable, the court can award additional fair compensation (billijke vergoeding) on top.
Transition payment for fixed-term contracts under Dutch law
Fixed-term employees are equally entitled when the employer does not renew the contract. The accrual is the same: one third of the monthly salary base per full year. Even contracts of a few months generate a pro-rata payment, which many employers wrongly assume is not owed.
What this calculator does not include
This tool calculates only the statutory transition payment under Article 7:673 of the Dutch Civil Code. It does not include: fair compensation, contractual top-ups in a settlement agreement (vaststellingsovereenkomst), wage-tax withholding, social-plan compensation (sociaal plan), or interest on overdue payments. For binding advice, consult a Dutch employment lawyer.
How the transition payment is calculated under Dutch law
Article 7:673(2) of the Dutch Civil Code prescribes one formula: one third of the monthly salary base per full year of service, plus pro-rata for remaining months and days. The entitlement accrues from day one and vests when the employer ends the contract or does not extend a fixed-term contract.
The monthly salary base includes more than the basic salary: 8% holiday allowance, 13th month, fixed bonuses, shift allowances, the 12-month overtime average, lease car fiscal value and other fixed components (per the Besluit loonbegrip).
The transition payment is capped at the annually published statutory maximum (EUR 102,000 in 2026) or at one annual salary if that figure is higher (Article 7:673(2) of the Dutch Civil Code).
Common employer mistakes when calculating the Dutch transition payment
The most frequent transition payment calculation errors: (1) omitting the 8% holiday allowance (vakantiegeld) from the salary base; (2) leaving out fixed bonuses or the 13th month (1/12); (3) miscounting completed months of service; (4) applying pre-2020 WWZ formulas to part of the service period. Employees who suspect underpayment have a strict three-month statutory deadline (vervaltermijn) from the end of employment to file a shortfall claim before the kantonrechter (subdistrict court). Missing this deadline forfeits the right to severance, regardless of the amount underpaid.
What if the employer pays the transition payment late?
Dutch law does not set an explicit payment deadline, but Article 6:119 of the Dutch Civil Code means the employer owes statutory interest from one month after the day the employment contract ends. In practice that one-month window therefore operates as the payment deadline. If employment ends on 31 May, statutory interest runs from 1 July. The applicable rate is the ordinary statutory rate for non-commercial transactions (four per cent per year since 1 January 2026), and not the higher commercial rate.
The statutory wage increase of Article 7:625 of the Dutch Civil Code (the late-payment surcharge on wages) does not apply to the transition payment. For tax purposes the transition payment is treated as wages, but it is not "wages fixed in money" within the meaning of that provision. Dutch case law consistently rejects this surcharge over the transition payment.
For extrajudicial collection costs (BIK) the position is less straightforward than for an ordinary commercial claim. The Besluit vergoeding voor buitengerechtelijke incassokosten (Decree on extrajudicial collection costs) was drafted for consumer and commercial transactions; the employer-employee relationship fits neither. The flat-rate scale therefore does not automatically apply. What remains is the general standard of Article 6:96(2)(c) of the Dutch Civil Code: actually incurred reasonable extrajudicial costs. In practice, collection runs through a petition to the kantonrechter (subdistrict court) under Article 7:686a(2) of the Dutch Civil Code, and the costs are assessed as court costs (legal representative or lawyer's fee plus court fee) rather than as flat-rate BIK.
Mind the deadline. A request to the kantonrechter for payment of the transition payment is subject to a strict three-month forfeiture period from the end of employment (Article 7:686a(4) of the Dutch Civil Code). Missing this deadline forfeits the right. Statutory interest may continue to accrue in the meantime, but that does not revive the forfeited claim.
Frequently asked questions
What is the formula for calculating the transition payment?
Is there a maximum transition payment?
Does the entitlement accrue from day one?
What if my employer underpaid the transition payment?
Is this calculator legal advice?
Can I get a transition payment if I resign voluntarily?
Is the Dutch transition payment taxable?
What if my contract was fixed-term and ends naturally?
When is statutory interest payable on the transition payment?
Is the employee entitled to extrajudicial collection costs (BIK)?
What deadline applies to a claim for payment of the transition payment?
Related Dutch employment law resources
- Transition payment under Dutch law: full legal explanation
- How to calculate the Dutch severance step by step
- Dismissal procedures in the Netherlands (UWV / kantonrechter)
- Dutch settlement agreement (vaststellingsovereenkomst): what to negotiate
- Fair compensation (billijke vergoeding) in addition to severance
- Find a Dutch employment lawyer to verify your severance
- Dutch employment law glossary: 136 key terms