The Dutch social security system is one of the most comprehensive in Europe. At its core are the volksverzekeringen (national insurance schemes) that provide a safety net for all residents. Understanding these schemes is important because their premiums form a significant part of your tax bill.
AOW: The State Pension (Algemene Ouderdomswet)
The AOW is the Dutch basic state pension. Every person who has lived or worked in the Netherlands between the ages of 15 and the retirement age accrues AOW rights — 2% for each year of residency. After 50 years, you have full entitlement.
Key Facts About AOW
- Current retirement age: 67 years (subject to periodic adjustment based on life expectancy).
- Premium rate: 17.90% of income in the first tax bracket (up to approximately 38,441 euros).
- Benefit amount (2025): Approximately 1,380 euros per month for a single person; approximately 950 euros each for partners.
- Accrual: 2% per year of residency. If you lived abroad for 10 years, your AOW is reduced by 20%.
The AOW is a pay-as-you-go system: today's workers fund today's pensioners. It is not a savings scheme, so there is no personal AOW pot to inherit.
Anw: Survivor's Benefit (Algemene nabestaandenwet)
The Anw provides income for surviving partners after the death of an insured person. It is a relatively modest scheme but provides essential support.
- Premium rate: 0.10%.
- Eligibility: Surviving partners who have a child under 18, or who are at least 45% incapacitated for work.
- Benefit amount: Up to approximately 1,430 euros per month gross, means-tested against other income.
Wlz: Long-Term Care (Wet langdurige zorg)
The Wlz covers the cost of long-term care for people with severe physical or mental conditions who require permanent supervision or 24-hour care.
- Premium rate: 9.99%.
- Coverage: Nursing homes, residential care, and intensive home care.
- Contribution from care recipients: If you receive Wlz care, you pay an income-dependent contribution (eigen bijdrage) through the CAK.
How Premiums Are Collected
The volksverzekeringen premiums are integrated into the first tax bracket. The combined rate of 27.99% (AOW 17.90% + Anw 0.10% + Wlz 9.99%) plus income tax of 8.98% gives the first bracket rate of 36.97%. This means you do not pay these premiums separately — they are automatically included in your loonheffing or income tax assessment.
Importantly, premiums are only charged on income up to the first bracket ceiling (approximately 38,441 euros). Income above this amount is only subject to income tax at 49.50%, without additional social security premiums.
Expats and Social Security
If you move to the Netherlands from another EU country, social security coordination rules apply. Generally, you pay social security in the country where you work. A certificate of coverage (A1 form) may be required to avoid double contributions during transitional periods.
Non-EU expats typically become fully insured for Dutch social security from their first day of legal employment in the Netherlands.
Use our income tax calculator to see how social security premiums affect your take-home pay.