Tax & Rates

Dutch social security 2027: which cuts are dropped and what employers pay

Updated: 15 september 2026 Holdwise editorial team Social security Employers Tax Plan 2027

The coalition agreement of early 2026 contained sizeable cuts to social security. Part of them disappears from the 2027 budget because the economy performs better than expected.

Short answer

Three cuts to Dutch social security were planned for 2027: a lower state pension (AOW), a 20% cut in the maximum daily wage that caps benefits, and a shorter unemployment benefit (WW) of 18 months in place of 24. In the budget of 15 September 2026 the cabinet drops the one-to-one link of the state pension age to life expectancy for good (€2.8 billion), drops the daily-wage cut (€824 million) and delays the shorter unemployment benefit to 1 January 2029. All other planned social security cuts, such as the change to the transition payment compensation, are delayed by one year. Employers do pay more: about €1.5 billion extra through the disability fund premium. Holdwise explains what this means for employers, employees and pensioners.

Status: Dropped. This measure is off the table. The cabinet dropped it. Every measure in one table: Budget Day 2026 and the Dutch 2027 Tax Plan.

The state pension

The AOW is the state pension for everyone from state pension age, 67 in 2027. The coalition agreement wanted to link the state pension age one-to-one to life expectancy, worth about €2.8 billion. That decision is dropped for good in the budget of 15 September 2026. The AOW stays fully linked to the minimum wage. For anyone who worked in the Netherlands for part of a career, the accrual of 2% per year of residence or work stays as it is.

The maximum daily wage

Unemployment and disability benefits are a percentage of the daily wage, with a maximum. In 2026 that maximum is about €299 a day, about €78,000 a year. The coalition agreement wanted to cut that maximum by 20%, which would have lowered the benefit of anyone earning more. That plan is dropped: scrapping it costs €824 million. Employers pay premiums on salary up to the maximum premium wage, which is linked to the daily wage, so that too stays at the higher level.

Unemployment benefit

The WW is at most 24 months for anyone with a long work history. The shortening to 18 months is delayed to 2029. Anyone who becomes unemployed in 2027 or 2028 keeps the current duration.

The transition payment

Small employers were to be released from the transition payment on dismissal for business reasons from 2027. That measure goes to 1 January 2028. An employer who lets an employee go in 2027 still pays one third of a monthly salary per year of service, with the UWV compensation scheme in cases of long-term illness.

What an employer pays in 2027

Employer premiums do rise, through the premium for the disability fund (Aof): about €1.5 billion extra in 2027 as the employer share of higher defence spending, roughly 0.5 percentage point of payroll. For a payroll of €500,000 that is €2,500 a year. Together with the mileage allowance of €0.25 and the free allowance of 2.16% this is the situation of Dutch payroll costs in 2027. The employer duties as a whole are in the pension obligation for Dutch employers and collective labour agreements in the Netherlands.

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This article is part of Doing Business in the Netherlands, the complete 2026 guide.

Frequently asked questions

Is the Dutch state pension cut in 2027? +

No. The one-to-one link of the state pension age to life expectancy (€2.8 billion) is dropped for good in the budget of 15 September 2026. The AOW stays linked to the minimum wage.

Is the maximum daily wage lowered? +

No. The planned 20% cut is dropped. The maximum stays about €78,000 a year and is indexed as usual.

Does unemployment benefit get shorter in 2027? +

The shortening from 24 to 18 months is delayed to 2029. In 2027 and 2028 the current duration applies.