Working in the Netherlands, your payroll should be like this
Working in the Netherlands, your payroll should be like this:
Looking at those complicated terms, don’t feel dizzy!
We are going to introduce the most important parts to you here, and then you can even easily understand your advanced payroll.
If you have more than one employer, the employer you work for most can apply the tax allowance called “Loonheffings korting” for you, helping you pay less tax. Please do remember to explain this situation well to the accountants or the payroll companies, especially when you have multiple employers. Try everything to save your tax payment.
2. CAO Fase
CAO stands for collectieve arbeidsovereenkomst (collective agreement), which is your employment contract. For most people who have just been employed, CAO is basically a temporary/short-term contract, which can be subdivided into ABU and NBBU. The most common one is ABU, temporary employment contract, shown as the example. Simply put, both ABU and NBBU divide different stages based on your working time.
Stage A: 78 weeks
Stage B: Maximum 4 years
Stage C: Permanent
Stage 1: 26 weeks
Stage 2: 52 weeks
Stage 3: Maximum 4 years
Stage 4: Permanent
This part shows the salary details while advanced payroll is more detailed. Here needs your attention:
- Uurloon, shown in the basic information, can be shown in salary details again, which is also called Normale uren. You can check the working hours and salary rate (per hour) here.
- Refund for your traveling expenses will be shown here as well.
- Check Betaling at the bottom right of this section to figure out the final transfer amount of your salary to the bank account.
You will see the information about your holiday accumulation in this section, such as:
- Vakantiegeld en reserv.vakantiedagen: Holiday allowances and holiday amount, depending on how many day offs you have used and how many you saved. These two are separate from each other. In addition, the holiday allowance will be paid automatically in the first week of June each year.
- Reserv. feestdagen: Here shows the record that you work on public holidays (such as: Easter, Christmas, etc.)
- Reserv. KV/BV: Here shows the amount of the day off you used for special reasons, such as visiting a family doctor.
The content in this part is almost same with part 3 Salarisberekening, like a summary. Social insurance expense and actual salary will be summarized in this section.
Even though everyone’s payroll looks different, the most important parts are still salary details and working hours. If you want to know how your fair salary is being deducted, you must check your payroll carefully.
You should be reluctant watching so many taxes paid to the government. xxxxxxxxx