What is on my payslip?

What is a payslip?

A payslip is an important document because it shows how much you earn, how much tax you pay, and what ultimately gets deposited into your account. You usually receive your payslip every month from your employer. Sometimes, you also need a payslip, for example, when renting or buying a house or checking your pension.

Key parts of the payslip

In this article, we explain what’s on your payslip and what it means. We will show you a sample payslip in sections. We will use the payslip of someone working for a temporary employment agency. The numbers (address, details, and job title) are just examples. Your payslip may contain different information.

We’ll start at the top of the payslip.

1. Your personal and job details

• medew.nr. (medewerkernummer): The number under which your employer registers you.
• BSN (Burgerservicenummer): Your national identification number if you are a resident of the Netherlands.
• geb. datum (geboortedatum): Your birthdate, as stated on your passport or ID.
• datum indienst: The date you started this job.
• datum uitdienst:The date you left this job.
• functie: The title of your job (e.g., carpenter). This shows what you do at work.

2. Your details and your employer’s details

• On the left, you’ll see your name and address. This confirms that the payslip is yours.
• On the right, you’ll see your employer’s name and address. This shows who pays your salary.

3. Workdays completed

• SVW dagen: The days that count toward social security laws (SVW), such as the Sickness Benefits Act and the Unemployment Insurance Act. These can be worked days, but also leave or sick days.
• Gewerkte dagen: The number of days you worked during this period.

4. Hours worked and holiday pay

• Normale uren: The number of hours you worked within your standard working hours (excluding overtime or bonuses).
• Toeslag uren: Hours for which you receive extra pay (wage bonus). For example, work during irregular hours (such as evenings or weekends).
• Overuren: Extra hours worked beyond your regular working hours. Overtime is usually paid at a higher rate.
• Uitb. Vakantiegeld: The amount of holiday pay you receive. This is usually paid once a year, typically in May or June.

5. Deductions for the ET Scheme

The ET Scheme (Extraterritorial Costs Scheme) is designed for employees from other countries who temporarily work in the Netherlands. Through this scheme, you can receive tax benefits because you incur specific costs to work in the Netherlands. For example, temporary housing or travel expenses can be reimbursed tax-free.

• Bruto inh. ET basis (Bruto inhouding ET basis): The amount your employer exchanges from your gross salary for housing and living expenses.
• Bruto inh. ET bvw vrf (Bruto inhouding ET bovenwettelijk verlof): The amount of extra (non-statutory) leave days your employer exchanges for housing, living, and travel expenses.
• Bruto inh. ET toeslag (Bruto inhouding ET toeslag): The amount your employer exchanges from wage bonuses for housing and living expenses.
• Bruto inh. ET overuren (Bruto inhouding ET overuren): The amount your employer exchanges from overtime pay for housing and living expenses.

6. PAWW (private supplement to unemployment and disability benefits)

The PAWW is an additional supplement if you receive unemployment benefits (WW)  or a disability benefit (WGA) . Both you and your employer contribute to this premium. This insurance ensures that you receive financial support if you become temporarily unable to work.

• PAWW vergoeding: The amount your employer pays for the PAWW.
• PAWW premie: The amount deducted from your salary for the PAWW.

7. Holiday pay and extra leave hours

• Uitb. Vakantiegeld (uitbetaling vakantiegeld): The holiday pay you have received. This is usually 8% of your gross salary. It is often paid out annually but can also be paid monthly.
• Uitb. Bovenwet. Uren (uitbetaling bovenwettelijke uren): Payment for additional leave days offered by your employer on top of the statutory vacation days.

8. Payroll tax

• Loonheffing is the payroll tax. This includes income tax and national insurance contributions. This tax is deducted from your gross salary before you receive your net amount.

9. Net salary

• Netto: The amount remaining after payroll tax, insurance premiums, and other deductions.
• Inhouding huisvesting: A deduction from your salary for housing costs. This often applies to employees from another country whose employer has arranged housing.
• Netto ET Basis: Net reimbursement after exchanging gross salary under the Gross Deduction ET Base mentioned earlier.
• Netto ET Bovenwett. Vrf (bovenwettelijk verlof): Net reimbursement after exchanging extra leave days under the Gross Deduction ET Extra Leave mentioned earlier.
• Netto ET Toeslag: Net reimbursement after exchanging gross salary under the Gross Deduction ET Bonus mentioned earlier.
• Netto ET Overuren: Net reimbursement after exchanging gross salary under the Gross Deduction ET Overtime mentioned earlier.

10. Health insurance and work-related contributions

• Coll. Zorgverzekering (collectieve zorgverzekering): Your employer offers a collective health insurance plan. The premium amount may be deducted from your salary. With this insurance, you don’t need to arrange your own health coverage. This insurance stops when your job ends, and you must arrange your own, as health insurance is mandatory in the Netherlands.
• WGA premie WN inhouding: The WGA premium contribution covers the costs employees must pay for the WGA disability benefit (Return to Work Scheme for the Partially Disabled). This premium is deducted from your salary.

11. Total and bank details

• Totaal Netto: The final amount you receive in your bank account after all taxes, premiums, and deductions.
• Wordt overgemaakt op: Your (international) bank account number, also known as IBAN, where your net salary is deposited.

12. Table at the bottom

• deze periode: This row contains information for the most recent period in which you worked.
• cumulatief: This row shows the total for all the days you have worked.

13. Workdays, salary, and taxes

• dagen: The number of days you have worked.
• brutoloon: Your salary before taxes and other deductions.
• svw. loon (SVW-loon): The portion of your salary used to calculate benefits if you are temporarily unable to work. The following components are included in the SVW salary:
  – Holiday pay;
  – Year-end bonus or 13th-month salary;
  – Shift allowance, tax surcharge for private use of a company car;
  – Paid Individual Choice Budget.
• fiscaalloon: The same as SVW-loon.
• loonheffing: The tax (income tax and national insurance contributions) deducted from your gross salary.

14. Deductions, contributions, and adjustments

• arb.korting (arbeidskorting): A tax discount for employees, directly applied to your salary. This reduces the amount of payroll tax you pay, so you receive more net income.
• zvw wg (zorgverzekeringswet werkgeversbijdrage): Your employer contributes to the Health Insurance Act (Zvw) to help cover part of your health insurance.
• zwa (ziektewet afdracht): This may refer to a premium or deduction for the Sickness Benefits Act, depending on the details on your payslip. Some employers contribute to a sickness benefits scheme.
• pensioen: The contribution deducted from your salary for your pension savings.
• RC HV (Rekening Courant Huisvesting): A correction on your salary due to an advance or repayment related to the housing scheme.
• RC WAS (Rekening Courant WAS): A correction on your salary related to the WAS (Wet Aanpak Schijnconstructies – Labour Market Fraud Prevention Act). This ensures correct wage payments and deductions.