The transitievergoeding is one third of your gross monthly salary for every year you worked, from your first day, pro rata for part years. After six years on €3,500 gross per month that is €7,000. The 2026 cap is €102,000 or one annual salary if that is higher.
What is the transitievergoeding?
The transitievergoeding is a statutory payment to employees whose contract is ended on the employer’s initiative: after dismissal, a court dissolution, or when a fixed-term contract is not renewed. It is meant to help with the transition to other work. You have the right from the first working day, with no minimum service time, since the Work and Security Act replaced the older, stricter rules in 2020. Employees under 18 who work 12 hours a week or fewer are excluded, and so is a dismissal for serious misconduct by the employee.
How is the transition payment calculated?
The formula is simple: one third of a gross monthly salary per year of service, with part years counted pro rata per month and day. Monthly salary here includes holiday allowance, a 13th month, structural overtime, shift allowances and other fixed components. A €3,500 salary with holiday allowance included and 6 years of service gives 6 × €1,167 = €7,000. The calculator also handles part years: 6 years and 4 months at €3,500 is €7,389.
The 2026 maximum
The payment is capped at €102,000 gross in 2026 (it was €98,000 in 2025). If your annual salary is higher than the cap, the maximum is one annual salary. For most employees the cap isn’t relevant: only about 25 years of service at €13,000 a month hits it.
Is the transition payment taxed?
Yes, as income. Because it comes in a single year, it can be taxed at a higher bracket, so the net amount is lower than many people think. If you have the choice about the timing of the payment or the contract end date, getting some advice might save real money. Check how your pay fits the brackets in the Netherlands salary calculator.
What else might you be owed?
- Unused holiday days and proportional holiday allowance on your last payslip.
- A fair compensation (billijke vergoeding) if the dismissal was clearly the employer’s fault, awarded by the court.
- Unemployment benefit (WW) from UWV, calculated separately, based on 75% of your daily wage for the first two months and 70% after that, up to a maximum daily wage of €304.25 in 2026.
Settlement agreements often add to the statutory figure, and the transitievergoeding is a minimum, not a ceiling. If you earn something as a contractor afterwards, the ZZP calculator gives an idea of net income as a freelancer.
How to use this calculator
- Enter your gross monthly salary including holiday allowance and fixed bonuses.
- Add the full years, plus extra months and days, of your employment.
- Read the transition payment and see if the 2026 cap applies.
- Compare it to any settlement offer your employer makes.
Key figures at a glance
| Formula | 1/3 monthly salary × years of service |
|---|---|
| Maximum 2026 | €102,000 or one annual salary |
| Maximum 2025 | €98,000 |
| Minimum service | None, counted from day one |
| Monthly salary includes | Holiday allowance, 13th month, fixed bonuses |
| Taxed as | Regular income |
Frequently asked questions
10 × (€4,000 ÷ 3) = €13,333 gross, assuming the €4,000 figure includes holiday allowance and fixed components.
If your employer decides not to renew a fixed-term contract, yes. If you choose not to continue yourself, normally no.
No. Since 2020 you build up the right from your first working day.
No. It is the statutory minimum. A settlement agreement can include a larger amount.
Small employers who dismiss for business reasons or long-term illness can in some cases receive compensation from UWV, which helps cover the payment.