Transitional Redundancy Payment 2026 What Changes for You as an Employee in Eindhoven

Are you being made redundant this year or facing a dismissal process? Then it is worth knowing that the rules surrounding the transitional redundancy payment have changed in several respects in 2026. The maximum amount has increased, the collective agreement rules have been tightened, and a legislative proposal is under way that could soon have major consequences for both employers and employees in cases of long-term illness. In this article, we set out the most important changes clearly for you.

Higher maximum amount in 2026

The most notable news is the increase in the statutory maximum amount. The maximum transitional redundancy payment will rise on 1 January 2026 from €98,000 to €102,000 gross. The maximum is adjusted annually on the basis of an estimate of the development of market-contracted wages. Do you earn more than €102,000 gross per year? Then from 1 January 2026 the payment is capped at €102,000 gross, or, if your annual salary exceeds €102,000, at a maximum of one gross annual salary.

The calculation itself has not changed. The amount of your transitional redundancy payment is calculated using a formula based on your monthly salary and the length of your employment: for each complete year of service, the transitional redundancy payment amounts to one third of your monthly salary. For periods shorter than a complete year, the payment is calculated on a pro-rata basis. The gross monthly salary used as the starting point encompasses more than just your basic pay: when determining the gross monthly salary, fixed pay components such as holiday pay, bonuses and other emoluments are also included.

Amended collective agreement rules for economic redundancy

There has also been a relevant change in the area of collective agreement arrangements that affects you as an employee. A collective agreement may still provide for an alternative arrangement in lieu of the transitional redundancy payment, but this is now only permitted in cases of dismissal for economic reasons. This arrangement no longer needs to be equivalent to the statutory transitional redundancy payment, provided it is aimed at preventing or shortening unemployment, contains a reasonable financial payment, or a combination of both.

What does this mean for you in practice? If you are dismissed for a reason other than economic circumstances — such as underperformance or an irreparably damaged working relationship — a collective agreement alternative arrangement does not apply. In that case, you are simply entitled to the statutory transitional redundancy payment. If in doubt, always check the wording of your collective agreement first and seek advice if necessary.

Legislative proposal on compensation for long-term illness

Another major development is playing out primarily on the employer’s side, but also has indirect consequences for employees. When an employer terminates an employment contract, a transitional redundancy payment is in principle due. This also applies to dismissal following long-term incapacity for work, after 104 weeks of illness. Employers who terminate the employment contract of a long-term incapacitated employee after 104 weeks can receive compensation from the UWV for the transitional redundancy payment paid.

The government wishes to restrict this compensation scheme, however. Employers can currently receive compensation from the government for the transitional redundancy payment they pay when dismissing an employee who has been ill for more than two years. In the future this will change: only small employers will then be able to receive a contribution towards this transitional redundancy payment. A recent parliamentary letter dated 24 April 2026 confirmed that the intended implementation date has been postponed from 1 July 2026 to 1 January 2027. The legislative proposal has yet to be formally adopted. It is therefore wise to keep a close eye on developments on this point.

When are you entitled to the transitional redundancy payment?

From 1 January 2020, you have been entitled to a transitional redundancy payment from the very first day of your employment contract upon dismissal. This includes dismissal during your probationary period. This applies to both permanent and fixed-term contracts, and also to zero-hours workers.

There are situations in which the entitlement lapses or is limited. These include:

• Dismissal due to serious culpable conduct on the part of the employee themselves;
• You resign of your own accord without the employer having given grounds to do so;
• If you are under 18 and work fewer than twelve hours per week, or if you have reached state pension age, you are not entitled to a transitional redundancy payment;
• Your collective agreement contains a valid alternative arrangement in the event of economic redundancy.

Practical tips if you are made redundant in Eindhoven

Redundancy is never pleasant, but good preparation makes a significant difference. If you are dismissed or receive notice of dismissal, bear the following in mind:

• Calculate your payment yourself using the official calculator on the Dutch government website, so that you know the statutory minimum you are entitled to.
• Check what your collective agreement says about alternative arrangements, particularly in the event of economic redundancy.
• Never sign a settlement agreement straight away — you have fourteen days to reconsider after signing, but it is wiser to have the agreement reviewed beforehand.
• Check your gross monthly salary carefully: holiday pay, bonuses and fixed allowances must all be included in the calculation.
• Know that negotiation is permitted: the transitional redundancy payment is a statutory minimum, so you can negotiate a higher redundancy payment.
• Seek advice promptly in cases of long-term illness: due to the forthcoming changes to the compensation scheme, your interests and those of your employer may diverge.

Fair compensation as a supplement to the transitional redundancy payment

In addition to the transitional redundancy payment, there is in certain circumstances an entitlement to a supplementary payment. If your employer has acted in a seriously culpable manner — through bullying, false accusations or gross negligence — you are entitled, via the route of fair compensation, to an unlimited additional award for damages. This is an exception to the general rule: in the case of a standard reorganisation or a correctly conducted dismissal process, you are entitled only to the transitional redundancy payment. Do you believe your employer has acted culpably? If so, have this assessed by an employment law specialist before taking any steps.

Why Arbeidsjurist Eindhoven?

At Arbeidsjurist Eindhoven, we keep a close watch on employment law practice in the region. Whether you work in Eindhoven, Helmond or elsewhere in Brabant, we help you quickly and personally to understand what the new rules mean for your particular situation. We look not only at the maximum amount, but at the complete picture: your employment history, your collective agreement, any scope for negotiation and the tax implications. Contact us without obligation for an initial exploratory conversation. Together, we ensure that you make a well-informed decision.

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.