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Breaking Down Your Dutch Pay-check: A Must-Read for Indian Expats

Updated: Jun 22, 2023

Are you an Indian expat working in the Netherlands and struggling to understand your Dutch salary slip? You're not alone. The Dutch salary system can be quite confusing, especially for non-native speakers. But don't worry, we're here to help! In this blog, we'll explain a Dutch salary slip with a gross salary of €60,000, both with and without the 30% ruling and with Holiday Allowance



Let's break down each section of your Dutch salary slip:

  1. Personal details(Persoonlijke gegevens): This section includes your name, employee number, and period of the pay slip (usually one month).

  2. Gross salary(Bruto salaris): This is the amount you earned before any taxes, social security premiums, or other deductions were made. Your gross salary is typically broken down into three components: basic salary (basisloon), vacation pay (vakantiegeld), and any bonus payments.

  3. Taxes and social security premiums(Belasting en sociale premies): This section shows how much tax and social security premiums were deducted from your gross salary. The amount of tax you pay depends on your income and tax bracket, which is determined by the Dutch Tax and Customs Administration (Belastingdienst).

  4. Pension contributions(Pensioenbijdragen): If you're enrolled in a pension scheme, you'll see how much money was deducted from your gross salary for pension contributions. In the Netherlands, pension contributions are mandatory and most employers offer a pension scheme to their employees.

  5. Net salary(Netto salaris): This is the amount you take home after all taxes, social security premiums, and other deductions have been made. Your net salary is what you'll actually receive in your bank account.

  6. Holiday allowance(Vakantiegeld): This is a bonus payment of 8% of your gross salary that you receive once a year, usually in May or June. The holiday allowance is meant to cover the costs of taking a holiday.

  7. Travel allowance(Reiskostenvergoeding): Depending on your employer, you may receive a travel allowance to cover the cost of commuting to work. This can be in the form of a public transport card (OV-kaart) or a cash allowance. If you receive a cash allowance, it will be listed on your salary slip under "reiskostenvergoeding".


Here is a comparison table between a 60,000€ salary, With and Without the 30% Ruling and with Holiday Allowance: (Data is taken from https://thetax.nl/)

Detail​

Without 30% Ruling

With 30% Ruling

Taxable Income

€55,555.56

€41,954.00

Payroll Tax

-€10,244.97

-€5,221.92

Social Security Tax

-€10,271.98

-€10,271.98

General Tax Credit

€1,065.08

€1,894.09

Labour Tax Credit

€3,888.90

€4,774.36

Year Net Income

€39,992.59

€46,730.11

Month Net Income

€3,332.72

€3,894.18

In conclusion, understanding your Dutch salary slip is essential for any Indian expat working in the Netherlands. It can be overwhelming at first, but once you break it down, it becomes much easier to comprehend. By understanding your salary slip, you can make informed financial decisions and ensure that you are being paid correctly. If you have any further questions or concerns about your Dutch salary slip, don't hesitate to speak with your employer or a financial advisor.


If you have any further questions or concerns about your Dutch salary slip, don't hesitate to speak with your employer or a financial advisor.


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