Offering a Dutch pension scheme
A pension scheme is an important employee benefit for recruiting and retaining good staff. If a company is not a member of a compulsory industry pension fund (BPF), it has the option of starting its own pension scheme. But what about when your staff are working in the Netherlands for a foreign company? Will they then also be able to accrue a pension in the Netherlands?
The answer to this is: yes, this is certainly possible. However, it is a bit more complicated than with a pension scheme for a Dutch company and it is therefore advisable to hire a good pension advisor. PensioenVizier deals with all aspects (including international aspects) of pensions every day and we would love to help you! In this article, we list some of the things you need to consider when taking a Dutch pension through a foreign employer. Do you have additional questions or need help starting a pension? If so, please feel free to contact us on +31(0)88-9000 900 of at email@example.com.
- English-language documentation
- Who can accrue a pension in the Netherlands?
- Please note in the event of long-term illness
- What is needed for that?
- Starting a pension scheme
PensionVizier believes it is important for the complexities surrounding pensions to be insightful and clear. That is why we ensure clear pension communication towards both employers and employees. All our (legal) documentation is also available in English. We also offer a user-friendly programme to help employees understand their own pension. This is also available in English.
Who can accrue a pension in the Netherlands?
An important condition for accruing a pension in the Netherlands is that the employee(s) must be resident in the Netherlands. And also work at least 25% in the Netherlands. Indeed, when these conditions are met, a person is also covered by social insurance schemes that we in the Netherlands enjoy. These include, for example, the Unemployment Insurance Act (WW) and also the General Old-Age Insurance Act (AOW) and the General Surviving Relatives Act (ANW). In addition, the employee(s) must have a Dutch employment contract pursuant to Section 7:610 of the Dutch Civil Code and, finally, they must be subject to Dutch payroll tax.
Please note in the event of long-term illness
Dutch laws tend to be different from those abroad and it is important to be aware of this when offering your staff a pension scheme in the Netherlands. A key issue here is the regulations surrounding (long-term) illness. Here, the employer has certain obligations towards the employee under the Eligibility for Permanent Invalidity Benefit (Restrictions) Act. Indeed, this law states that employer and employee are jointly responsible for reintegration in case of (long-term) illness.
This law is not used abroad, but compliance with the rules of this law is essential when running a Dutch pension scheme. Failure to do so could have consequences for any benefits and coverages, and this could lead to a great deal of extra costs for you as a foreign employer. Therefore, be sure to be fully informed on this from a good pension adviser.
What is needed for that?
If you want to start a pension scheme in the Netherlands for your staff, most pension providers require you to be able to provide an extract from the Chamber of Commerce. With a small number of providers, however, it is also possible to take out a pension scheme without this Chamber of Commerce extract. An additional condition is that you, as an employer, can prove that your staff is liable for income tax in the Netherlands, as well as that they are insured for the aforementioned social insurances. You can prove this, for example, with a pay slip.
Starting the pension scheme
The pension provider does not usually charge any additional fees for starting a pension scheme for a foreign company. This means you can make it as expensive as you want. Our pension advisers will help you choose, start and maintain the scheme that best suits your staff and your company. Feel free to contact us to discuss the many possibilities.