Gross and net pension: how to explain it to your employees
"My pension statement says €1,500 a month, but how much of that do I keep net?" It is the question HR gets asked most often. This article gives the answer in plain language and with the 2026 figures, so that you explain it right the first time.
Work it out
Enter what you know. The calculator uses the Dutch Tax Administration's tables and rates for 2026 and the AOW amounts of the SVB.
Aukje Lonhard · pension adviser for more than 30 years
Will this be enough to live on?
That is the question behind every calculation, and a calculator cannot answer it. For many people, pension is a pile of letters full of difficult words, with choices whose meaning for you is unclear. I take you through it step by step, in plain language:
- first we list what you have and what will come in later;
- then we look at what you need to live the way you want;
- after that I explain which choices you have and what each one means for you.
You do not need to prepare anything or know any jargon. By the end you know where you stand.
Go through it together with AukjeNo obligation. Your result comes along, so you do not have to enter your amounts again.
Employer or HR? Have Aukje explain it to your employees in plain language.
Do you reach the AOW age during 2026? Then different monthly rates apply in that year. Aukje will work it out for you. The calculator gives general information and is not personal tax advice.
Why does your pension statement show a gross amount?
A pension is deferred salary. Your employee pays no tax on the contribution now (the reversal rule: contributions untaxed, benefits taxed), but pays tax on the benefit later. That is why pension providers and mijnpensioenoverzicht.nl show gross amounts: what someone keeps net depends on their personal situation at that time.
What is deducted from the gross pension?
- Wage tax. From the state pension age, an employee no longer pays state pension (AOW) contributions. As a result, the rate in the first tax bracket in 2026 is 17.85 percent instead of 35.75 percent before the state pension age. Anyone who retires earlier therefore pays the higher rate until the state pension age.
- Healthcare insurance contribution (Zvw). The provider withholds the income-related healthcare insurance contribution (Zvw) from the pension and the state pension. In 2026 it is 4.85 percent, on income up to €79,409 a year.
- Tax credits. The general tax credit and the elderly person's tax credit reduce the tax, and for people living alone also the single elderly person's tax credit. The provider applies them only if the employee asks for this, and only on one source of income: either the state pension (AOW) or the pension.
How do you calculate your net pension in 2026?
For someone who has reached the state pension age and was born in 1946 or later, you go from gross to net in four steps.
- Add the state pension and the pension together. Tax is charged on your total income, even when two organisations each pay part of it.
- Deduct the Zvw contribution: 4.85 percent of the gross amount.
- Calculate the wage tax: 17.85 percent up to €38,883 a year, 37.56 percent from €38,883 to €78,426 and 49.50 percent above that.
- Deduct the tax credits. In 2026 the general tax credit is at most €1,556 and decreases above an income of €29,736. The elderly person's tax credit is €2,067 for an income up to €46,002 and phases out above that, reaching zero at €59,782. People living alone also receive a single elderly person's tax credit of €540.
In practice, the SVB (the Dutch social insurance bank) applies the credits to the state pension and the pension provider withholds 17.85 percent from the pension, without credits. This is what you then receive in your account each month.
| Gross supplementary pension per month | Wage tax | Zvw contribution | Net pension | Net including state pension |
|---|---|---|---|---|
| €500 | €89.08 | €24.25 | €386.67 | €1,968.22 |
| €1,000 | €178.25 | €48.50 | €773.25 | €2,354.80 |
| €1,500 | €267.42 | €72.75 | €1,159.83 | €2,741.38 |
| €2,000 | €356.58 | €97.00 | €1,546.42 | €3,127.97 |
Source: Belastingdienst, Tarieven, bedragen en percentages loonheffingen vanaf 1 januari 2026 (annex to the Nieuwsbrief Loonheffingen 2026); gross state pension as of 1 July 2026: Staatscourant 2026, 20221 (5 June 2026). For a single person with no other income, with the tax credits applied to the state pension and a net state pension of €1,581.55. Calculated according to the Tax Administration's 2026 monthly wage tax table for pensions, excluding holiday allowance. For your own amount, use the calculator at the top of this article.
This is what is paid out each month. The final amount only follows from the income tax return. With a small pension you often get something back, because the SVB cannot use all the credits on the state pension alone. With a €2,000 pension, you and your state pension together go above €38,883 a year. The part above that is taxed at 37.56 percent and the general tax credit decreases, while the provider withholds only 17.85 percent. Using the July 2026 amounts on an annual basis, including the AOW holiday allowance, that is around €1,365 more tax than is withheld each month. The SVB withholds part of it from the holiday allowance in May; you pay the rest after your tax return. Even then, the person keeps well over 80 percent of the gross income net.
How much is the state pension (AOW) net in 2026?
From 1 July 2026, the full state pension for a single person is €1,662.16 gross a month. A Zvw contribution of €80.61 is deducted. If you let the SVB apply the wage tax credit, the SVB withholds no wage tax and you receive €1,581.55 net.
For married and cohabiting people, the state pension is €1,139.39 gross per person. After a Zvw contribution of €55.26 and with the wage tax credit, €1,084.13 net per person remains, €2,168.26 together. Without the wage tax credit, a further 17.85 percent or so of the gross amount is deducted, around €296 a month for a single person. The SVB pays the holiday allowance separately in May.
Source: Staatscourant 2026, 20221 (gross state pension as of 1 July 2026), also on svb.nl; Belastingdienst, Tarieven loonheffingen vanaf 1 januari 2026. Net amounts recalculated with a 4.85 percent Zvw contribution.
How much tax do you pay on your pension and state pension?
After the state pension age, you pay 17.85 percent on the first €38,883 of your annual income. Above that, the same rate applies as for working people: 37.56 percent up to €78,426 and 49.50 percent on the excess. Before the state pension age, the rate in the first bracket is 35.75 percent, because you still pay state pension contributions.
Someone who only has the state pension pays no net income tax in 2026. The tax on a full state pension is lower than the tax credits. What remains is the Zvw contribution. As soon as a pension is added, you pay 17.85 percent tax plus 4.85 percent Zvw on every extra euro, and the higher rate above that.
Two benefits also means two organisations withholding tax. The SVB and the pension provider do not know how much you receive from the other. Each calculates as if it were the only benefit. That is why the amount withheld is often not quite right and a settlement follows after the end of the year. With a provisional assessment through Mijn Belastingdienst, you spread it over the year.
What does your own pension contribution cost net?
Many schemes include an employee contribution. Because that contribution is deducted from the gross salary, every euro paid in costs around 62 cents net at a rate of 37.56 percent and around 50 cents at 49.50 percent. This is the argument that persuades employees to take part in voluntary extra savings: the tax authorities chip in.
How HR answers the question right the first time
- Refer to mijnpensioenoverzicht.nl: it shows the total of the state pension (AOW) and all employer pensions, including a net indication.
- Explain the difference between before and after the state pension age; that accounts for the biggest surprise when retiring early.
- Provide a gross-to-net card with the annual pension statement (UPO) listing the three items above and the calculation table.
- Point out the year-end settlement to employees with a pension alongside the state pension, so that extra tax does not come as a shock.
- Offer a personal consultation to employees aged 55 and over or in the event of a reorganisation.
Frequently asked questions from employees
Is the state pension (AOW) also gross?
Yes. Wage tax and the Zvw contribution are also withheld from the state pension. The SVB usually applies the tax credits; in that case, do not have the pension provider apply them as well, or you will face a back-payment assessment.
Wage tax credit on the state pension or on the pension?
On one of the two, never on both. Usually it is the state pension, because for most people it is the largest part of their income and the SVB includes all the elderly person's credits. If the credit is applied to both, you are paid too much each month and have to pay it back after the year. If your pension is much higher than your state pension, discuss whether the credit is better applied to the pension.
Why do I have to pay extra tax on my state pension and pension?
Because the SVB and the pension provider each withhold separately. Together you move into a higher bracket or the tax credits decrease, but the provider withholds only 17.85 percent from the pension. You pay the difference after your tax return. A provisional assessment through Mijn Belastingdienst spreads the amount over twelve months.
How much is €2,800, €3,500 or €5,000 gross pension net?
For a single person with a full state pension alongside, the provider pays out around €2,165, €2,656 and €3,518 net a month. Because the provider withholds too little, a substantial extra tax bill follows after the year. After the tax return, you keep around €1,758, €2,076 and €2,879 a month of the pension. This is calculated with the 2026 rates and the July 2026 state pension on an annual basis, including the AOW holiday allowance. For your own amount, use the calculator at the top of this article.
Why is my net pension lower than my net salary?
Mainly because you do not get the employed person's tax credit on a pension. That credit only applies to income from work. After the state pension age, the state pension contribution does disappear and you receive the elderly person's tax credit, but with an ordinary pension that usually does not make up for a lower gross amount.
Why do I receive less net if I retire early?
Until the state pension age, you pay the normal rate of 35.75 percent in the first bracket, including state pension contributions, and you do not yet receive a state pension. After that, the state pension contribution no longer applies and the net amount rises.
Can I have my pension paid out gross and pay the tax myself?
No. The pension provider is obliged to withhold wage tax. You can, however, choose which benefit the tax credits are applied to.
Pension adviser since 1990, Wft-certified (Dutch Financial Supervision Act) for pensions and income. Advises employers, works council members, DGAs and private individuals from Pensioenhart in Hoofddorp.
This article provides general information and is not personal tax advice. Rates and percentages change every year; check the current figures from the Dutch Tax Administration (Belastingdienst).
Figures checked on 4 November 2026. Sources: Belastingdienst, Tarieven, bedragen en percentages loonheffingen vanaf 1 januari 2026 (annex to the Nieuwsbrief Loonheffingen 2026, 2nd edition); Staatscourant 2026, 20221, social security amounts as of 1 July 2026 (AOW); SVB, Bedragen AOW.
Read next: Future Pensions Act for employers · Retirement age and state pension age
A presentation, leaflet and drop-in session for your team
Pensioenhart explains the scheme in plain language, in Dutch or English. Fixed price, also alongside your existing adviser.
Request the package