Understanding your first Dutch payslip
Your first payslip has arrived, you are staring at a wall of abbreviations, and mostly you are wondering why the amount in your bank account is smaller than the one you calculated. Relax: understanding your first payslip is easier than it looks, and it saves you a lot of hassle with the Dutch tax office later on. In this article we walk through the payslip from top to bottom, so you know exactly what you are looking at and what to check.
What is at the top of your payslip?
The top block is the boring but important half. It shows your name, your citizen service number, your date of birth, the period you are being paid for and the number of hours that were processed. Your hourly wage and your type of contract are there too, plus a line stating whether the payroll tax credit has been applied.
Always take that block seriously. If your date of birth is wrong, your minimum hourly wage is probably wrong too, because in the Netherlands that amount depends on your age. And if the number of hours is wrong, you are simply missing money. Compare the hours with your own records or with the app you use to submit them.
Gross, net and everything in between
Your gross pay is your hourly wage multiplied by the hours you worked. That is not what you keep. Payroll tax comes off first: the wage tax and the national insurance contributions your employer transfers on your behalf. Some employers also deduct a pension contribution. What remains is your net pay, and that is the amount that lands in your account.
The gap between gross and net feels big at first, but the money does not disappear. Part of it may come back to you through your tax return, and the contributions are the reason you are insured against things like long term incapacity for work.
What is the minimum hourly rate on your payslip?
Since 2024 the Netherlands has a statutory minimum hourly wage, and everyone aged 15 to 20 has a fixed minimum youth wage per hour. The Dutch government set these amounts as of 1 July 2026:
| Age | Gross minimum wage per hour from 1 July 2026 |
| 21 and older | €14,99 |
| 20 years | €11,99 |
| 19 years | €8,99 |
| 18 years | €7,50 |
| 17 years | €5,92 |
| 16 years | €5,17 |
| 15 years | €4,50 |
This is a floor, not a target. In many sectors the collective labour agreement sets a higher rate, and that applies to a large share of the vacancies we publish as well. Earning less than the amount for your age? Report it straight away. Had a birthday halfway through the month? Your new hourly wage should start the day after your birthday.
What is the payroll tax credit and should I apply it?
The payroll tax credit, in Dutch loonheffingskorting, is a discount on the tax you pay over your wage. Apply it and your employer withholds less, so you keep more net pay each month. You arrange it on the form you fill in when you start.
The key rule comes from the Dutch tax office: if you work for more than one employer at the same time, apply the payroll tax credit with only one of them. Apply it with both and you receive too much credit, which usually means paying tax back afterwards. If you work for several employers one after the other within a year, so not at the same time, you may apply it with each of them. Holding two jobs at once? Choose the one where you earn the most.
Can students get a tax refund in the Netherlands?
Often, yes. If no payroll tax credit was applied to a second student job, relatively much tax was withheld on that income. Filing an income tax return with the Dutch tax office lets you reclaim what you overpaid. Keep your annual statements, because they show exactly what each employer withheld.
Holiday allowance and holiday hours: money you cannot see
At the bottom of your payslip you will usually find a block with accruals or reservations. That is money you have already earned but have not been paid yet. Two items show up almost every time.
The first is holiday allowance. According to the Dutch government you are entitled to at least 8 percent of the gross pay you earned over the past year, and your employer pays it out at least once a year. For most employees that happens in May or June.
The second is your holiday hours. The statutory number of holiday hours per year equals four times the number of hours you work per week. Work sixteen hours a week all year and you build up sixty four holiday hours. Even on a small student contract, that entitlement is yours.
Something on my payslip looks wrong. What now?
Check the following four things:
- Do the processed hours match your own records?
- Does the hourly wage fit your age and the collective labor agreement of the company you work at?
- Is the payroll tax credit set the way you requested it?
- Are the accruals for holiday allowance and holiday hours visible?
If something is off, do not wait for next month. Contact your branch. Recruit a Student is the legal employer of the students working through us, so your payslip, your contract and your payroll are handled by us and not by the company where you are placed.
Ready for your first payslip?
A payslip is in the end just a calculation: hours times hourly wage, minus payroll tax, plus what you build up in holiday allowance and holiday hours. Once you know what each line means, thirty seconds is enough to see whether it adds up.
Recruit a Student is the specialist in student jobs and working student positions in the Netherlands.
Frequently asked questions about your first paycheck
What is the difference between gross and net pay?
Your gross pay is your hourly wage multiplied by the number of hours worked: your pay before deductions. Your net pay is what actually lands in your bank, the gross amount minus payroll tax (income tax) and social insurance contributions. The net amount is therefore always lower than the gross amount.
What does "loonheffingskorting" (payroll tax credit) mean on my payslip?
The loonheffingskorting is a discount on the payroll tax your employer withholds from your wages. Applying it means you keep more net pay each month. When you start a job, you indicate yourself whether your employer may apply the payroll tax credit.
Can I apply the payroll tax credit at more than one side job at the same time?
No, if you work for more than one employer at the same time, you should only apply the loonheffingskorting at one of them. If you apply it at several employers, too little tax is withheld and you may have to repay part of it to the Dutch Tax Authority (Belastingdienst) later.
What is the statutory minimum hourly wage in 2026?
As of 1 July 2026, the gross minimum hourly wages are:
- Age 21 and over €14,99
- Age 20 €11,99
- Age 19 €8,99
- Age 18 €7,50
- Age 17 €5,92
- Age 16 €5,17
- Age 15 €4,50
Check that the hourly wage on your payslip is at least the amount that applies to your age.
Can I get a tax refund as a student?
In most cases, yes. If too much payroll tax has been withheld overall, for example because you did not receive the payroll tax credit at a second job, you can reclaim it through an income tax return (aangifte inkomstenbelastingdienst) with the Belastingdienst. Use the annual statements (jaaropgaven) from your employer(s) to do this.
What is holiday pay and how much do I get?
Holiday pay ("vakantiegeld") is an extra payment on top of your regular wages. It is at least 8 percent of the gross salary your earned over the past year. Most employer pay it out in a single instalment in May or June.
How many holiday days do I build up with a side job?
You accrue statutory holiday days with a side job too. The legal minimum is four times the number of hours you work per week. If you work 10 hours a week, for example, you are entitled to at least 40 hours of holiday per year.
What details appear at the top of my payslip?
The top of your payslip shows your personal details: your name, date of birth, the number of hours worked, your hourly wage and your type of contract. Always check these, and in particular compare the hours worked against your own records.
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