Work and pay
Transitievergoeding
Statutory severance payment
What does Transitievergoeding mean?
The transitievergoeding is the severance payment your employer owes by law when it ends your contract or does not renew a temporary one. You are entitled from your first day of work. It is one third of your gross monthly salary for each year of service, calculated pro rata for part years. In 2026 it is capped at €102,000, or one gross annual salary if you earn more than that.
Key facts
| Entitled from | The first day of employment |
| Amount | 1/3 of monthly salary per year of service |
| Cap (2026) | €102,000, or one annual salary if higher |
| Legal basis | Burgerlijk Wetboek article 7:673 |
What to do
- Check whether you qualify: the employer ended the contract, or did not renew a temporary one.
- Calculate it: one third of your monthly salary (including holiday allowance and fixed extras) per year of service.
- Check the cap: €102,000 in 2026, or one annual salary if that is higher.
- If you resign yourself, you are usually not entitled, unless the employer acted seriously wrongly.
- In a settlement agreement, compare what is offered with this statutory amount.
Worth knowing
The monthly salary used includes more than base pay: holiday allowance, fixed end-of-year bonuses and fixed overtime count too. Employers sometimes calculate on base pay only, so check the figure.
Frequently asked questions
How much is the transitievergoeding in 2026?
One third of your gross monthly salary per year of service, pro rata for part years, capped at €102,000 or one gross annual salary if that is higher.
Do I get a transitievergoeding if my temporary contract is not renewed?
Yes, if the employer decides not to renew. You are entitled from the first day, however short the contract was.
Do I get it if I resign?
Normally not. The exception is when you resign because of serious culpable behaviour by the employer, in which case a court can award it.
Read next
- Vaststellingsovereenkomst: settlement agreements
- Losing your job on a visa
- Employee rights in the Netherlands
Official sources
More Dutch terms: work and pay
Plain-English explanations of the words on your letters and contracts.