In 2026, quite a lot is changing around the Statutory Redundancy Payment. The maximum amount is rising, the compensation scheme for employers is being overhauled, and the collective agreement rules are also being tightened. Want to know exactly where you stand? We have set out the most important changes clearly below.
The new maximum amount in 2026
The most eye-catching news is the increase in the statutory maximum. Whereas in 2025 you had to take into account a cap of €98,000, that figure is considerably higher this year. As of 1 January 2026, the statutory redundancy payment amounts to a maximum of €102,000 gross. If your annual salary exceeds that amount, your gross annual salary applies as the maximum payment. This cap is indexed annually on the basis of contractual wage developments, and for 2026 that means an increase of €4,000 compared with the previous year.
The calculation formula itself remains unchanged: you receive 1/3 of your gross monthly salary for each full year of service, with any period beyond a complete year calculated on a pro-rata basis. A period of employment of ten years and three months therefore yields slightly more than exactly ten years of service.
Entitlement to statutory redundancy pay from day one
A rule that has been in place since 2020 but still regularly causes confusion: you accrue entitlement to a statutory redundancy payment from your very first working day. It does not matter whether you are on a fixed-term contract, working as a casual worker, or are still within your probationary period. As soon as the employer takes the initiative to terminate or not renew the employment relationship, you are in principle entitled to the payment. If you voluntarily resign, that entitlement generally lapses.
One exception does apply: if you have acted in a seriously culpable manner, the court may rule that the employer owes no statutory redundancy payment. Conversely, in addition to the statutory redundancy payment, there is also what is known as a fair compensation payment, which the court may award if the employer has acted in a seriously culpable manner. There is no statutory cap on that amount.
Change to the compensation scheme for long-term illness
One of the most significant proposals for employers in 2026 concerns the compensation scheme for dismissal following two years of illness. At present, employers can reclaim the statutory redundancy payment they have made after a long-term sick employee’s employment ends by applying to the UWV. However, the government wishes to restrict that scheme to small employers. A small employer is defined as an employer with a total wage bill of no more than 25 times the average contribution-liable wage per employee per year. The intended commencement date for this legislative proposal is 1 July 2026, although the legislature must still give its final approval.
Medium-sized and large employers who currently benefit from the compensation scheme would be well advised to adjust their financial planning accordingly. Transitional provisions apply to ongoing sickness trajectories with an end date before 1 July 2026, so that the right to compensation is retained in those cases.
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Plan een gesprekCollective agreements and alternative arrangements
A collective agreement may include an alternative arrangement in place of the statutory redundancy payment. However, clear limits apply here in 2026 as well. Such a deviating arrangement may only be agreed upon in the context of redundancy for business-economic reasons. The arrangement no longer needs to be equivalent euro-for-euro to the statutory payment, but it must be aimed at preventing or shortening unemployment, include a reasonable financial payment, or a combination of both. Does your situation fall under a collective agreement? Then it is worth checking whether the arrangement on offer meets these requirements.
What counts towards the calculation
Not everyone is aware of which pay components are included in the calculation. It is not just your basic monthly salary. Consider also:
- Holiday pay (8% of gross monthly salary)
- A fixed year-end bonus or thirteenth month payment (1/12 per year)
- Fixed shift or overtime supplements
- Variable bonuses or profit-sharing payments, averaged over three years
By including all these components correctly, the actual payment can turn out to be considerably higher than you might initially expect. Conversely, an undercalculation by the employer can easily go unnoticed if you are not familiar with the details.
Practical tips if you are made redundant
- Always check for yourself whether your employer’s calculation is correct, including all fixed pay components.
- Have you received a settlement agreement? Have it reviewed before you sign; the statutory redundancy payment is a legal minimum within it, and negotiation is often possible.
- Check whether an alternative arrangement applies under your collective agreement and whether it meets the statutory requirements.
- Have you been off sick for more than two years? Find out in good time about the implications of the legislative proposal for the compensation scheme, both as an employee and as an employer.
- Keep all documents relating to your employment carefully: your contract of employment, payslips, appraisals, and correspondence regarding your dismissal.
Why Arbeidsjurist Eindhoven
The rules surrounding statutory redundancy payments change every year, and the details make all the difference. At Arbeidsjurist Eindhoven, we know the Brabant employment landscape and can help you quickly and personally, whether you are an employee or an employer. Are you unsure whether your payment has been calculated correctly, or would you like to know what the new rules mean for your situation? Please feel free to contact us without obligation. We would be happy to take a look with you.
Frequently asked questions
How much is the maximum statutory redundancy payment in 2026?
As of 1 January 2026, the maximum statutory redundancy payment amounts to €102,000 gross. If your annual salary exceeds €102,000, your gross annual salary applies as the maximum. This amount is indexed annually on the basis of contractual wage developments.
What is changing about the compensation scheme for employers in 2026?
The government has submitted a legislative proposal to restrict the UWV compensation scheme for dismissal following long-term illness to small employers. Medium-sized and large employers would then no longer be able to apply for compensation. The intended commencement date is 1 July 2026, but the proposal still needs to be formally adopted.
Am I entitled to a statutory redundancy payment as a casual worker in 2026?
Yes. Since 2020, you accrue entitlement to a statutory redundancy payment from your first working day, regardless of the type of contract. This also applies to casual workers and people on fixed-term contracts. The condition is that the employer takes the initiative to terminate the employment relationship.
May a collective agreement deviate from the statutory redundancy payment?
An alternative arrangement may be agreed upon in a collective agreement, but in 2026 this is only permitted in the case of redundancy for business-economic reasons. The arrangement must be aimed at preventing or shortening unemployment, include a reasonable financial payment, or a combination of both.
Which pay components count towards calculating the statutory redundancy payment?
In addition to your basic salary, holiday pay, fixed year-end bonuses, shift or overtime supplements, and average variable bonuses are also included. By incorporating all these elements correctly, the payment can turn out to be considerably higher than if it were based on basic monthly salary alone.
We are happy to think along with you. For advice tailored to your situation we would gladly sit down with you. No rights can be derived from the content of this page and it may contain inaccuracies.
