Work and income in the Netherlands

The BSN (burgerservicenummer) is your personal number for the government. You get it when you register at a municipality, and you keep it for life.

• You need a BSN to work, to pay tax, to take out health insurance, to open a bank account and to register at a school or a GP.
• Only give your BSN to organisations that are allowed to ask for it, such as your employer, the Tax Authority, your health insurer, your school or your GP. Keep your identity document safe, because misuse of your BSN is identity fraud.
• When an employer hires you, they must check your identity document and may note your BSN. You show the original document, not only a photo.

DigiD is the login for government services on the internet. With one username and password, plus a second step on your phone, you can log in to the Tax Authority, the UWV, your municipality, DUO and your health records.

• You request DigiD on the website digid.nl with your BSN. You receive an activation code by post, so your address must be correct.
• Never share your DigiD password or codes with anyone, not even a helpful friend or someone who calls you and says they are from the government. The government never asks for your codes by phone or e-mail.
• With your DigiD you can apply for allowances, file your tax return, see your pension, change your address and book appointments.
• If you lose access, you can ask for a new one. Do it quickly if you think someone else knows your password.

Exam tip: Question pattern: “Someone calls and asks for your DigiD code.” The right answer is always: do not give it, and hang up.

When you work for an employer, you should have a written employment contract (arbeidsovereenkomst). It says your job, your pay, your working hours and the kind of contract.

• A contract for a fixed period (tijdelijk contract) ends on a set date. A permanent contract (vast contract) has no end date. A temp agency (uitzendbureau) finds you jobs at other companies.
• You have a right to at least the statutory minimum wage (wettelijk minimumloon) for your age, to a payslip (loonstrook) and to holiday pay (vakantiegeld), which is usually paid once a year.
• Many jobs follow a collective labour agreement (cao) between employers and unions, which can give you more than the law.
• Employers may not discriminate: not when hiring, not in pay and not when firing, whatever your religion, origin, gender, age or sexual orientation. If it happens, you can go to a trade union or to the Netherlands Institute for Human Rights (College voor de Rechten van de Mens).
• If you are ill, you report sick to your employer (ziekmelden) on the first day. The employer usually keeps paying a large part of your wages while you are ill.

Exam tip: Work culture: be on time, tell your employer if you cannot come, and speak up politely if something is unclear. A direct question is not rude.

Everyone who earns money in the Netherlands pays tax. The Tax Authority (Belastingdienst) collects it and also pays out several allowances.

• If you have an employer, they withhold wage tax (loonheffing) from your salary and pay it for you. You can see it on your payslip.
• Once a year you may have to file an income tax return (aangifte inkomstenbelasting) with your DigiD. Often the Tax Authority has already filled in most of it. Sometimes you get money back.
• When you buy things you pay VAT (btw), which is already in the price. Municipalities, provinces and water boards charge their own local taxes.
• If you are self-employed (zzp’er), you register with the Chamber of Commerce (KvK) and you arrange your own tax and insurance.
• Never ignore a letter from the Tax Authority. If you cannot pay, contact them in time instead of waiting.

The UWV is the Employee Insurance Agency. It helps people find work and pays benefits when you lose your job or cannot work because of illness.

• If you lose your job, apply for an unemployment benefit (WW-uitkering) at the UWV immediately. You can usually only get it if you worked long enough before.
• You must look for work and keep proof of your applications (sollicitaties). You can search for jobs on the UWV job site (werk.nl).
• Long-term illness or disability may lead to a benefit through the UWV after a long period in which your employer pays.
• You log in at “Mijn UWV” with your DigiD to see your file and to send information. Always send what they ask for on time, otherwise payments may stop.

The Dutch welfare state helps people who cannot support themselves. Who pays and who decides depends on the situation.

• Social assistance (bijstand) is for people with no or too little income and no savings. You apply at your municipality, and you must actively look for work.
• Child benefit (kinderbijslag) is a payment for each child, paid every quarter by the Social Insurance Bank (SVB).
• The state pension (AOW) is paid when you reach pension age. How much you get depends on how many years you lived in the Netherlands.
• Allowances (toeslagen) such as rent, health care and childcare allowance come from the Tax Authority, and depend on income.
• If you receive money you are not entitled to because you gave wrong or incomplete information, you must pay it back, and you may get a fine. So always give correct information and report changes.

Exam tip: The duty to provide information (inlichtingenplicht) is a favourite exam topic: if your situation changes, you tell the organisation that pays you, immediately.