Your Dutch payslip explained, line by line (2026)
A Dutch payslip (loonstrook) is shorter than most: one tax line, loonheffing, covers both income tax and national insurance, and most employee insurance premiums are paid by your employer. The lines worth checking are the tax credit, your pension and the holiday allowance.
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From gross to taxable pay
Bruto loon is your salary plus overtime, shift allowances and other pay. Your own pension contribution (pensioenpremie) is deducted before tax, which gives the loon voor de loonheffing (also called fiscaal loon or tabelloon). Tax-free allowances under the work-related costs scheme (werkkostenregeling), such as a travel allowance of up to 0.23 EUR a kilometre, are added after tax.
Loonheffing
Loonheffing combines income tax and national insurance contributions (AOW, Anw, Wlz). In 2026, below State pension age, it is 35.75% up to 38,883 EUR a year, 37.56% up to 78,426 EUR and 49.50% above. Payroll uses official tables to spread this over each pay period: the white table (witte tabel) for normal pay.
Loonheffingskorting
The tax credits, mainly the general tax credit (up to 3,115 EUR in 2026) and the labour tax credit (up to 5,685 EUR), are applied through payroll when you ask for the loonheffingskorting. Use it with one employer or benefits agency at a time. If two apply it, you will owe tax back after the year; if none does, you pay too much each month and get it back through your tax return. Both credits shrink at higher incomes.
Holiday allowance and the special rate
You are entitled to a holiday allowance (vakantiegeld) of at least 8% of your gross pay, usually paid in May or June. Like a 13th month or a bonus, it is taxed using the special rate table (bijzonder tarief), which is based on your yearly pay and often looks high. That rate is an advance: your tax return settles the difference.
Pension and other lines
Most employees are in a pension fund through their sector or employer. Your share is usually a few percent of your salary above a franchise, an amount on which no pension is built. The pension system is moving to new contracts by 2028, which can change the premium. Employer premiums for unemployment, disability and health insurance (WW, WIA, Zvw) are not deducted from you. If you have the 30% ruling for expats, part of your pay is tax-free and shown as a separate allowance; from 2027 the percentage drops to 27%.
What to check every month
Loonheffingskorting applied by one employer only; your pay against the minimum wage (14.99 EUR gross an hour from age 21 since 1 July 2026) and your collective agreement (cao) scale; the pension percentage; holiday allowance building up; leave days and ADV days; the cumulative totals. Payslop runs these checks for free.
Check your own payslip. Upload it and every line is explained, the rates verified and the questions for HR written for you. Free, nothing stored. Decode my payslip
Questions people ask
Why is the tax on my holiday allowance so high?
Because the special rate (bijzonder tarief) applies to one-off payments. It is based on your yearly pay and includes the effect of losing part of your tax credits, so it can be higher than your normal rate. The final tax is settled with your tax return.
I have two jobs. Where should I use the loonheffingskorting?
Usually at the job that pays most. Only one employer should apply it.
Do I have to file a tax return?
Only if the tax office asks you to, but filing often pays off if you worked part of the year, had two jobs or did not use the loonheffingskorting. You can still file for the last five years.
Related guides
Indicative rules as of October 2026. Not tax or legal advice.