Dutch Social Insurance Premiums 2026: AOW, Anw and Wlz

The first Dutch income tax band rate of 35.75% is not pure income tax. 27.65 percentage points of it are national insurance (volksverzekeringen), charged alongside only 8.10% of actual income tax. The premiums are capped at €38,883 of income per year, so the maximum total national insurance contribution is approximately €10,751.

The three national insurance schemes

Scheme Abbreviation 2026 rate What it funds
Algemene Ouderdomswet AOW 17.90% State pension (retirement income from AOW age)
Algemene nabestaandenwet Anw 0.10% Survivors benefit for widows, widowers and orphans
Wet langdurige zorg Wlz 9.65% Long-term care in nursing homes and residential facilities
Total 27.65% All three schemes combined

All three are applied to income up to the same ceiling of €38,883 in 2026. Income above that threshold is subject only to the income tax portion (37.56% in the second band, 49.50% in the third).

Why the first band rate looks so high

The combined 35.75% first band rate is often misunderstood as a 35.75% income tax rate. In reality, only 8.10% is income tax on the first €38,883 of income. The remaining 27.65% goes directly to the three social insurance funds. The income tax component rises steeply in the higher bands (37.56% and 49.50%) because those bands have no national insurance element.

AOW: the state pension

The AOW is the Dutch flat-rate state pension, payable from AOW age onwards (67 years and 3 months in 2026 for those born in the relevant cohort, rising further for later cohorts). Every year of being insured in the Netherlands builds up 2% of the full AOW amount, so 50 years gives 100%. Partners each receive their own AOW: a couple receives up to 200% of the single amount. The 17.90% premium is by far the largest of the three schemes and funds the pay-as-you-go pension for current retirees.

Wlz: long-term care

The Wlz (long-term care) scheme covers severe care needs that cannot be met at home: nursing home stays, residential care, and intensive personal support. At 9.65%, it is the second largest national insurance premium. Entitlement is need-based (assessed by the CIZ); it is not a direct insurance payout like AOW but a right to care funded collectively.

Employer social insurance (separate from Box 1)

In addition to the employee-side premiums in Box 1, employers pay several levies that do not appear on your payslip. These include the employer share of the ZVW health insurance contribution (approximately 6.51% of wages in 2026, capped at the same €38,883), WW unemployment insurance and WIA disability insurance. These are employer costs that affect the total cost of employment but are not deducted from employee gross pay.

Frequently asked questions

Do I pay national insurance premiums as a non-resident working in the Netherlands?

In general, if you work in the Netherlands as an employee you are subject to Dutch social insurance regardless of where you live, unless a treaty or EU coordination rule applies. Frontier workers and seconded employees covered by another country's social security system may be exempt. The arrangement should be documented before you start work.

Is there a ceiling on the national insurance premiums?

Yes. The premiums are charged only on income up to the first Box 1 band ceiling of €38,883 in 2026. Income above that is subject to income tax only (at 37.56% or 49.50%) with no national insurance component.

When can I draw the AOW state pension?

The AOW state pension age in 2026 is 67 years and 3 months for people born between 1 October 1959 and 30 September 1960. It rises gradually for people born later. You build up 2% of the full AOW amount for each year you were insured in the Netherlands, so 50 years gives 100% of the AOW amount.

Source: Belastingdienst Box 1 rates 2026; SVB AOW information. Last updated 2026-11-04.