European employees in The Netherlands

Transcription

1 Contents WORKING IN THE NETHERLANDS 2 European employees in The Netherlands PART 1: WORKING IN THE NETHERLANDS FOR A DUTCH EMPLOYER 5 Before you start working When you have started working Tax and insurance What happens if... PART 2: WORKING IN THE NETHERLANDS FOR AN EMPLOYER BASED OUTSIDE THE NETHERLANDS 21 PART 2A: IF YOU DO NOT LIVE IN THE NETHERLANDS 22 Before you start working When you have started working PART 2B: IF YOU LIVE IN THE NETHERLANDS 27 Before you start working When you have started working Tax and insurance What happens if... PART 3: EXTRA INFORMATION 36 Forms Abbreviations Where to get an E101 form Websites and addresses

2 W o r k i n g i n t h e N e t h e r l a n d s 3 Working in the Netherlands WHO IS THIS BOOKLET FOR? This booklet is designed for employees in the following situations: You are staying and working in the Netherlands temporarily, and you live in another country of the EU or EEA, or Switzerland (part 1). You are staying in the Netherlands temporarily, and are working for an employer from another country of the EU, EEA or Switzerland (part 2a). You live in the Netherlands and work for an employer from another country of the EU, EEA or Switzerland (part 2b). If you are going to work in the Netherlands and you are from a country in the European Union (EU), the European Economic Area (EEA) or Switzerland, your social insurance position will be clear. Agreements have been made on social insurance and tax between the countries of the EU, EEA and Switzerland. This booklet is about those agreements. The booklet also explains what you should do if you come to the Netherlands to work, or if you stop working in the Netherlands. The EU/EEA countries and Switzerland Austria Hungary Poland Belgium Iceland Portugal Bulgaria Ireland Romania Cyprus (Greek) Italy Slovenia Czech Republic Latvia Slovakia Denmark Lithuania Spain Estonia Liechtenstein Sweden Finland Luxembourg Switzerland France Malta United Kingdom Germany Netherlands Greece Norway Are you an EU/EEA or Swiss national? If you are a national of an EU/EEA country, or Switzerland, you can stay anywhere in the EU/EEA and Switzerland. You do not have to report your presence to any authorities. Neither do you need a work permit. You have a right to work anywhere within the EU/EEA and Switzerland. Again, you do not have to report to the authorities, unless you have Bulgarian or Romanian nationality. In that case, you will not need a residence permit, but you will need a work permit.

3 W o r k i n g i n t h e N e t h e r l a n d s If you are not an EU/EEA or Swiss national If you are not an EU/EEA or Swiss national, you will need a residence permit to work in the EU/EEA or Switzerland. Your employer will usually also need a work permit for you. If you have a work permit, then this booklet also applies to you. (Your employer will not need a work permit if you come under the highly skilled migrants scheme.) You will find more information at working for a Dutch employer The agreements on social security will not apply if you live in Denmark, Liechtenstein, Norway, Iceland or Switzerland, or if you return to one of these countries. Is your employer based in or outside the Netherlands? This booklet consists of two parts. It makes a difference whether you work in the Netherlands for a Netherlands-based employer or an employer based outside the Netherlands. If you will be working for a Netherlands-based employer, go to page 3. If you are going to work in the Netherlands for an employer based outside the Netherlands, go to page 23. This booklet explains where to apply for pensions and benefits. The pension and benefit organisations will check whether you are entitled to the pension, benefit, allowance, etc. which you are claiming. Normally, you will have to meet a number of conditions.

4 W o r k i n g i n t h e N e t h e r l a n d s Part 1 Working in the Netherlands for a Dutch employer You have found a job with a Dutch employer. You have concluded an employment contract with your employer. The contract will contain rules for e.g. working hours, wages, holidays and leave. These are Dutch rules. Apart from your employment contract, you will probably also fall under a collective agreement on terms and conditions of employment (CAO). The CAO will contain additional rules for all employees in your sector with regard to pay, supplementary pension and sick pay. You can obtain more information about your CAO from your employer, union, or on the internet at 1. You can find more information about your rights and obligations in the booklet entitled Working in the Netherlands from the Ministry of Social Affairs and Employment, which is available in a number of languages. IT MAKES A DIFFERENCE WHERE YOU LIVE If you live in the Netherlands If you live in the Netherlands, the Dutch rules and regulations will always apply. You will be insured in the Netherlands on the grounds of your work in the Netherlands. You will be in the same position as someone who has been living and working in the Netherlands for years. In that case, this booklet does not apply to you. If you do not live in the Netherlands You will still be subject to the Dutch rules and regulations because you work in the Netherlands. This part of this booklet is relevant for you. When are you considered to be living in the Netherlands? You can only live in one country at a time. You are considered to be living in the Netherlands if you have closer social, economic and legal ties with the Netherlands than with your country of origin. Example: you live in the Netherlands if your family also lives in the Netherlands. If your family lives outside the Netherlands, you are not considered to be living in the Netherlands. You are then staying in the Netherlands for the purpose of work. 1 menu_item=12370

5 W o r k i n g i n t h e N e t h e r l a n d s W o r k i n g i n t h e N e t h e r l a n d s Before you start working Register with a Dutch health insurer. Ask for an E106 form and submit it to your health insurer in your country of residence. Your Before you start working, you must make sure that everything is properly partner and children, if they do not have income of their own, will arranged. Below is a checklist of the things you need to do. then be entitled to health care in their country of residence. Check whether you need permission to work in the Netherlands DO YOU NEED PERMISSION TO WORK IN THE NETHERLANDS? If you are a national of an EU/EEA country or Switzerland, you will not need permission to work in the Netherlands. If you have Romanian or Bulgarian nationality, you will not need a residence permit, but your employer will need a work permit for you. If you come to the Netherlands as a highly skilled migrant, you will not need a work permit. You can read more about this at: If you are not an EU/EEA or Swiss national, you will need a residence permit. Your Dutch employer will also have to apply for a work permit for you. If you cannot get a residence permit and work permit, you will not be allowed to work in the Netherlands. Apply to the Dutch Tax Administration (Belastingdienst) for a Citizen Service Number (BSN). HEALTH CARE AND MEDICAL EXPENSES You must register with a Dutch health insurer. You will have to a pay a monthly contribution. For this contribution, your employer will deduct part of your pay, and you will pay a part directly to the Dutch health insurer. This entitles you to health care in the Netherlands. Your Dutch health insurer will reimburse you for part of the costs of that care. You can also get medical care in your country of residence if you are registered there. In that case, you have to submit an E106 form to your health care insurer in your country of residence. You can get this form from your Dutch health insurer. With this E106 form, your partner and children, if they do not have income of their own, can also get medical care in your country of residence, or in the Netherlands if they are staying in the Netherlands. To receive health care in the Netherlands, they must apply for a certificate from the health insurance company Agis in Amersfoort. The health insurer in your country of residence decides which members of your family are entitled to care, and states their names on the E106 form. The form is then forwarded to the Dutch Health Care Insurance Board (CVZ), which registers your family members and collects the contributions payable for them. HOW TO GET A CITIZEN SERVICE NUMBER To work in the Netherlands, you need a Citizen Service Number (Burgerservicenummer, BSN). This is a unique identification number which you must obtain from the Dutch Tax Administration. You then give this number to your employer, who will use it to inform the Tax Administration that you work for that employer &restrictions=0&step=0 &acro=free&lang=en (engelse versie) If your partner or children start working, they will automatically become insured in the country where they work. They will then no longer be entitled to medical care on the basis of your Dutch insurance. If your partner starts working in your country of origin, your children will be coinsured with your partner. They must report this to the health care insurer in their country of residence, who, in turn, will inform the Dutch Health Care Insurance Board (CVZ.)

6 1 0 W o r k i n g i n t h e N e t h e r l a n d s W o r k i n g i n t h e N e t h e r l a n d s 1 1 A European health insurance card (EHIC) from your country of residence will not be valid if you work in the Netherlands. Apply for a health care allowance for yourself and your family members. HEALTH CARE ALLOWANCE The Dutch government wants to keep health care affordable for everyone. You and your coinsured family members can therefore apply for a refund of part of the health insurance contribution. This is known as the health care allowance. You have to apply for the health care allowance to the Dutch Tax Administration (Belastingdienst, Dienst Toeslagen.) When can you get a health care allowance? You are 18 or over. You are alone and earn 29,069 or less a year. You and your partner together earn 47,520 or less a year. The amount of health care allowance you get depends on the amount of your income. You can find more information about the health care allowance at If you have children, you can claim Dutch child benefit from the office of the Sociale Verzekeringsbank (SVB) that serves the area where your employer is established. Inform the child benefit agency in your country of residence that you are working in the Netherlands. If your partner is employed in your country of residence, that country will pay the child benefit. If the Dutch child benefit is higher, you will be entitled to supplementary child benefit from the Netherlands. You can claim Dutch child benefit from the office of the Sociale Verzekeringsbank (SVB) that serves the area where your employer is established. You will find more information at Child care allowance (kinderopvangtoeslag) If you start working in the Netherlands, you may qualify for an allowance to help cover the costs of child care. The amount of this allowance will depend on your income and that of your partner. If you are entitled to non-dutch family allowance, this will also affect the amount of child care allowance that you are entitled to. You may also be able to get a contribution towards child care in your country of residence. However, this will only be possible if the non-dutch child care centre or agency is a registered child care institution. If necessary, you can apply to have your non-dutch child care centre or agency included in the register. You can apply to the Dutch Tax Administration, department Toeslagen, for the child care allowance. You will find more information at Check whether you want to be treated as a domestic tax subject. In other words, see whether you can get mortgage interest relief and apply for a general tax credit for your partner. CHILD BENEFIT You start working in the Netherlands, and are therefore insured in the Netherlands. This means that you qualify for Dutch child benefit (AKW) for your children. Dutch child benefit, which is paid each quarter, is intended as a contribution towards the expenses of looking after children under 18. If the child benefit rate is higher in your country of residence than in the Netherlands, supplementary child benefit may be payable from your country of residence. DOMESTIC OR FOREIGN TAX SUBJECT? As you do not live in the Netherlands, you are subject to tax outside the Netherlands. In practise, this means that you only pay tax in the Netherlands on your Dutch earnings. If you do not have any deductibles, such as for mortgage interest, and your partner is employed, then it will not be to your advantage to be treated as a domestic tax subject in the Netherlands. If you are subject to tax outside the Netherlands, you can opt to be treated

7 1 2 W o r k i n g i n t h e N e t h e r l a n d s W o r k i n g i n t h e N e t h e r l a n d s 1 3 as a domestic tax subject. You will then be entitled to all rebates and deductibles on your income tax. This will be to your advantage if, for example, you pay interest on a mortgage on your own home, or if your partner does not work or has little income. Your partner will then also get a fixed amount from the Dutch Tax Administration. Workers from Switzerland, Liechtenstein and Cyprus cannot opt to be treated as a domestic tax subject. The Netherlands does not have agreements with those countries on the exchange of information. Contact the tax authorities in your country of residence how to report your Dutch earnings. If your spouse does not work, you can take out voluntary survivor benefit and old age pension insurance for him or her at the SVB. VOLUNTARY INSURANCE FOR YOUR SPOUSE If your spouse lives in another EU/EEA country, or in Switzerland, but is not employed and not insured, then you can take out voluntary survivor benefit insurance (Anw) and voluntary old age pension insurance (AOW) as long as you work in the Netherlands. You must apply for the voluntary insurance within one year of starting to work in the Netherlands. Apply to the Sociale Verzekeringsbank, Afdeling Vrijwillige Verzekeringen (Voluntary Insurance Department): (NL). When you have started working You have started working in the Netherlands. You will soon get your first payslip. The payslip will state not only the amount you earn but also the contributions and taxes that your employer deducts for you. You pay tax and national insurance contributions (loonheffing) TAX ON YOUR WAGES You pay tax on your earnings. The amount of tax you pay depends on the amount of your wages/salary. The more you earn, the more tax you pay. Your employer will deduct the tax from your pay and pay it to the Dutch tax authorities (Tax Administration). When calculating wage tax, your employer takes tax credits into account. National insurance contributions deducted from your pay You pay contributions for old age pension (AOW), survivor benefit (Anw) and exceptional medical expenses (AWBZ). These are Dutch national insurance schemes. Your employer deducts these amounts from your earnings and pays the contributions to the Tax Administration. When calculating the contributions, your employer takes tax credits into account. Submitting a tax return/national insurance contributions If you are subject to tax outside the Netherlands Tax and national insurance contributions are an advance levy in respect of the income tax/national insurance contributions owed. In some cases, sufficient tax and national insurance contributions will have been withheld and you will not have to submit a tax return for tax and national insurance contributions. As a non-dutch tax subject, you do have to file a tax return if you owe additional tax and national insurance contributions because you received other income from which no tax and national insurance contributions were deducted. You can also submit a tax return if you have

8 1 4 W o r k i n g i n t h e N e t h e r l a n d s W o r k i n g i n t h e N e t h e r l a n d s 1 5 deductibles not taken into account when the tax and national insurance contributions were deducted. If you opted for treatment as a domestic tax subject If you are subject to tax outside the Netherlands, you can opt to be treated as a domestic tax subject. You will then be entitled to all rebates and deductibles on your income tax. This will be to your advantage if, for example, you pay interest on a mortgage on your own home, or if your partner does not work or has little income. Your partner will then also get a fixed amount from the Dutch Tax Administration (up to e 2,074). If you opt to be treated as a domestic tax subject, you will also have to report income received from your country of residence in the Netherlands. You do not have to pay tax in the Netherlands on this income. You may, however, have to pay more tax on your Dutch income. Find out whether it would be in your best interests to opt for treatment as a domestic tax subject. Usually, you will also have to report your income in your country of residence. Workers from Switzerland, Liechtenstein and Cyprus cannot opt to be treated as a domestic tax subject. The Netherlands does not have agreements with those countries on the exchange of information. Will you be working in the Netherlands for less than a year? If you will be working in the Netherlands for less than a year, you might be able to get a refund for part of the tax and social security contributions paid. You can get more information from the Tax Administration at their international office: Belastingdienst, kantoor Buitenland: (NL). You pay contributions for the employee insurance schemes. You pay contributions for the employee insurance schemes. All employees have this type of insurance. You pay contributions for unemployment insurance (WW) and the employer pays contributions for incapacity insurance (WIA). The WIA contributions will probably not be stated on your payslip. This happens behind the scenes. You pay contributions for health insurance: via your wages/salary and via your health care insurer. HEALTH INSURANCE CONTRIBUTIONS VIA WAGES/SALARY Every month, you pay an income-related contribution via your wages/ salary. You will not notice any effects of this because your employer reimburses you for this amount. Contribution paid to health care insurer You will have registered with a health care insurer in the Netherlands. You have to pay a fixed monthly contribution to the health care insurer, which is separate from the amount you pay via your wages/salary. You will normally get a bill from your health care insurer. It is also possible that your employer will deduct the fixed contribution from your wages/salary and pay it to the health care insurer for you. The amount you pay for your family depends on where they live. The health insurer in your country of residence decides which members of your family are entitled to care, and states their names on the E106 form. The form is then forwarded to the Dutch Health Care Insurance Board (CVZ), which registers your family members and collects the contributions payable for them. No contribution will be charged for your coinsured family members aged under 18. You can also take out supplementary insurance so that the costs of dental care or physiotherapy, for example, are also reimbursed (partly or fully). If you opt for supplementary insurance, you will have to pay an extra contribution. Your health care insurer can tell you more about this.

9 1 6 W o r k i n g i n t h e N e t h e r l a n d s W o r k i n g i n t h e N e t h e r l a n d s 1 7 Contribution for supplementary pension Employees in the Netherlands usually build up rights to a company pension. Apart from the statutory contributions, you will probably also have to pay a contribution, together with your employer, for a company pension. The amount you get when your pension becomes payable depends on your wages/salary. Every year, you will be sent a letter about your pension. It is important to keep this letter for future reference. What if you get ill? If you become ill, you must report this to your employer. Your employer will continue paying your wages/salary at a minimum of 70% and a maximum of 100%. You can see how much you will get in your collective labour agreement (CAO) or employment contract. Your employer will provide guidance during your sick leave, usually through the occupational health and safety service (arbodienst). IF YOUR CONTRACT EXPIRES WHILE YOU ARE ILL, OR IF YOU WERE WORKING FOR A TEMPORARY WORK AGENCY IN THE NETHERLANDS In that case, you can get a sickness benefit under the ZW scheme (Sickness Benefits Scheme).You will then get 70% of your last-earned pay. This money will be paid to you by the Institute for Employee Benefit Schemes (UWV). Your employer will inform the UWV that you are ill. If you are ill and wish to recuperate in your country of residence, you will need permission from the occupational health and safety service (arbodienst). A doctor will assess whether returning to your country of residence would delay your recovery or not. If you become ill while in your country of residence, you must report within three days to the organisation that pays sickness benefit in your country of residence. They will arrange for a medical examination.... you are ill for a long time? If you are ill for more than two years, and are 35% or more incapacitated for work, you can get an incapacity benefit (WIA) from the Institute for Employee Benefit Schemes (UWV). The UWV will send you a claim form for a WIA benefit. A doctor in your country of residence will determine what your capacity for work is and how much you are capable of earning. In other words, the degree of your incapacity for work will be established.

10 1 8 W o r k i n g i n t h e N e t h e r l a n d s W o r k i n g i n t h e N e t h e r l a n d s 1 9 The UWV will inform you about this. If you are less than 35% incapacitated for work, you may be able to get an unemployment benefit. You can find out where to claim an unemployment benefit in the section (what if) you become unemployed. The Netherlands does not have separate legislation for industrial accidents and occupational diseases. A WIA benefit must be claimed in both cases. If you return to your country of residence during your illness, you should submit your claim for a Dutch incapacity benefit in that country. A doctor from your country of residence will carry out the medical examination. If you also get an incapacity benefit from a country other than the Netherlands, the UWV will deduct the non-dutch benefit from the WIA benefit. The countries where you have worked will determine whether you can get a benefit from those countries. Ask your employer or union about supplementary insurance in the event of incapacity for work. if you become unemployed? If you become fully unemployed, you can get unemployment benefit. You are considered to be fully unemployed if you no longer work for an employer in the Netherlands. You should then claim unemployment benefit in your country of residence. You can only get Dutch unemployment benefit if you did not travel between the Netherlands and your country of residence on a daily or weekly basis. You also have to be staying or living in the Netherlands. If you are not working due to weather conditions or other unforeseen circumstances, you should claim the benefit in the Netherlands. You should also do this if you are still working for another employer in the Netherlands. The amount of unemployment benefit varies between countries. For the duration of your benefit, the country paying the benefit will consider how many years you worked in the Netherlands, your country of residence and other EU/EEA countries and Switzerland. This will be stated on an E301 form. Apply for this form at the unemployment agency in the country where you worked. In the Netherlands, this is the UWV (NL). If you return to your country of residence, you can take your Dutch benefit with you for a maximum of three months while you look for work there. You will have to apply to the UWV for an E303 form: (0) (NL). Take this form to the organisation that pays your benefit in your country of residence. you have a baby? Dutch child benefit is payable towards the costs of bringing up a child. You can claim Dutch child benefit from the office of the Sociale Verzekeringsbank that serves the area where your employer is established. Dutch child benefit is paid every quarter. If your partner does not work, you may be able to get supplementary child benefit from your country of origin if the child benefit is higher there. Inquire about this in your country of residence. If your partner is employed in your country of residence, that country will pay the child benefit. If the Dutch child benefit is higher, supplementary Dutch child benefit will be payable. If your situation changes, for example, if your partner starts or stops working, or if you have another child, contact the Sociale Verzekeringsbank (SVB) and the child benefit agency in your country of residence without delay. You may qualify for a contribution towards childcare costs. This contribu-

11 2 0 W o r k i n g i n t h e N e t h e r l a n d s tion depends on the family income and other child benefit entitlements. You may also be able to get a contribution towards childcare in your country of residence. You will find more information at if you retire? You will be entitled to an old age pension from the Sociale Verzekeringsbank (SVB) at the rate of 2% of the full AOW pension for each year that you worked in the Netherlands. You will receive a fixed amount in AOW pension once you turn 65. You should claim the AOW pension in your country of residence, at the same time as your old age pension from that country. working for an employer based outside the Netherlands Employees in the Netherlands usually also accrue rights to a company pension. You should claim the company pension in the Netherlands from your pension fund. The amount of pension you get depends on the amount you earned and on the length of time you accrued pension rights. you pass away? If you pass away, your partner or children may be entitled to survivor benefit under the National Survivor Benefits Act. Your partner or children have to claim this benefit in their country of residence. The benefit is paid by the Sociale Verzekeringsbank (SVB). If your partner or children are also entitled to a survivor benefit from your country of residence, the SVB will deduct that benefit from the Dutch benefit. If you participated in a company pension fund, your partner or children may also be entitled to payments from that pension fund. Your partner or children should apply for this pension in the Netherlands. Your employer or the pension fund will be able to tell you more about this.

12 W o r k i n g i n t h e N e t h e r l a n d s 2 3 Part 2 Working in the Netherlands for an employer based outside the Netherlands You are going to work in the Netherlands temporarily for an employer or temporary employment agency from your country of origin 5. In other words, you have been posted, or seconded to work in the Netherlands. You have concluded an employment contract with your employer. The contract includes rules for working hours, wages, holidays and leave. These are rules of your country of origin. When you start working in the Netherlands, additional Dutch rules will apply. Your employer must pay at least the Dutch minimum wage and the corresponding holiday allowance. In certain companies and sectors, the rates of pay, working hours, etc. set down in a collective labour agreement (CAO) will also apply to you. You will find more information about this at You can also find more information about Dutch CAO agreements (in English) at 6 You can find more information about your rights and obligations in the booklet entitled Working in the Netherlands from the Ministry of Social Affairs and Employment: This booklet is available in various languages. IT MAKES A DIFFERENCE WHERE YOU LIVE WHILE YOU WORK IN THE NETHERLANDS You are considered to be living in the country with which you have the closest social, economic and legal ties. If your family does not live in the Netherlands, you are not considered to be living in the Netherlands either.you are then considered to be staying in the Netherlands for the purpose of work. If your family lives with you in the Netherlands, you are considered to be living in the Netherlands. This section working in the Netherlands for an employer outside the Netherlands consists of two parts: A. You do not live in the Netherlands; go to page 24. B. You do live in the Netherlands; go to page Country of origin means the country where you previously lived and worked. If you were then already working in a country other than your country of residence, the information in this booklet is not relevant for you. You should inquire at the organisations listed in the last section. 6 menu_item=12370

13 2 4 W o r k i n g i n t h e N e t h e r l a n d s W o r k i n g i n t h e N e t h e r l a n d s 2 5 Part 2a If you do not live in the Netherlands This part of the booklet explains the rules for people who do not live in the Netherlands and who work for an employer from their country of residence. If you do not work for an employer from your country of residence, contact the Sociale Verzekeringsbank (SVB). If you work in the Netherlands, you will be insured in the Netherlands. Unless you have an E101 form, that is. This form states that you are insured in your country of origin. Depending on how long you stay in the Netherlands, you will either have to pay tax in your country of residence or in the Netherlands. Do you need permission to stay in the Netherlands? If you have the nationality of an EU/EEA country or Switzerland, you will not have to report to any authorities in the Netherlands to be able to stay here. You will not need a residence permit. If you do not have the nationality of an EU/EEA country or Switzerland, you do have to register in the Netherlands. You will need a residence permit. You must apply for a residence permit to the municipality in the Netherlands where you are staying. Before you start working Before you start working, you must do a number of things. Below is a checklist of the things you have to do. Do you want to be insured in your country of residence? E101-form If you work in the Netherlands, you will be insured in the Netherlands. If you want to stay covered under the social insurance legislation of your country of residence while you are working in the Netherlands, you will need an E101 form to confirm this. You or your employer must apply for the form in your country of residence. You can find which organisation to apply to in the list at the back of this booklet. That organisation will state on the form until what date you are covered by social insurance legislation in your country of residence. If you have an E101 form, you will be subject to the social insurance legislation and rules of your country of residence. For example, for child benefit, old age pension, incapacity benefit and health insurance. For this insurance, you pay contributions in your country of residence. The benefits must therefore also be claimed in your country of residence. However, there is one exception. If you become ill in the Netherlands, you have to report sick to a Dutch organisation, the Institute for Employee Benefit Schemes (UWV). To receive medical care in the Netherlands, you will need a European health insurance card (EHIC). You can get this card from your health insurer in your country of residence. Contact the Dutch Tax Administration and the tax authorities in your country of residence to find out how and where you have to pay tax.