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How to calculate redundancy pay for part-time work

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Working part-time and facing redundancy? Like full-time workers, you are entitled to a Transitional allowance. The calculation is fundamentally no different from that of a full-time contract, but there are a few important points to watch closely — because a mistake in the monthly salary can easily cost you hundreds of pounds.

The basic formula that always applies

Whether you work 40 hours or 20 hours per week, the statutory formula is the same. For each complete year of service you receive one third of your gross monthly salary. For any part of the employment that is shorter than a full year, the payment is calculated on a pro-rata basis using the salary actually earned during that period.

In practice, the calculation works as follows: for the remaining months and days, the formula is (gross salary received over that remaining period ÷ gross monthly salary) × (⅓ gross monthly salary ÷ 12). Add together the amounts for the full years, the individual months, and the remaining days, and you have the total redundancy payment.

The part-time monthly salary as the starting point

This is where the crucial difference lies for part-time workers: you use your own gross monthly salary as the basis — that is, the salary corresponding to your part-time role. If you work 24 hours per week instead of 40, your contractual part-time wage is the starting point, not the full-time salary.

The calculation of that part-time monthly salary is based on the hourly rate in force at the time of dismissal, multiplied by the contractually agreed average number of hours per month. If only a number of hours per week has been agreed, this is converted to a monthly basis. Where working hours vary — such as with a min/max contract — you look at the average number of hours worked in the twelve months before the dismissal.

Which pay components count

The gross monthly salary is rarely the only amount that counts. Under the Decree on the wage concept for notice period and transition payments, other fixed and variable pay components are also added to the reference salary. The same rules apply to part-time workers:

  • Holiday pay: you add 1/12 of the annual holiday pay to the monthly salary.
  • Fixed year-end bonus or 13th month: 1/12 of this is also added to the monthly wage.
  • Fixed pay components (such as a structural overtime allowance or shift premium): the average over the past 12 months is included on a monthly basis.
  • Variable pay components (such as bonuses or profit-sharing payments): you take 1/36 of the total over the past 36 months.
  • Not included: the employer’s pension contribution, a company car, and expense allowances.

If all these components apply in your situation, the reference salary can work out considerably higher than your basic contractual pay, and the redundancy payment will rise accordingly.

The statutory maximum in 2026

For all employees — full-time and part-time alike — a statutory cap applies. The maximum redundancy payment in 2026 is €102,000 gross. If you earn more than €102,000 per year, your gross annual salary serves as the maximum. With a part-time salary you will generally only reach this cap after a very long period of service, but it is worth bearing in mind.

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A practical example for a part-time worker

Suppose you have been working for the same employer in Eindhoven for 7 years and 4 months, three days a week. Your gross part-time monthly salary is €1,800. Adding 8% holiday pay brings the reference salary to €1,944.

  • For 7 complete years: 7 × ⅓ × €1,944 = €4,536
  • For the remaining 4 months: (4/12) × ⅓ × €1,944 = €216
  • Total: €4,752 gross redundancy payment

This is an illustrative example. The Dutch government provides an official Redundancy Payment Calculator (Rekenhulp Transitievergoeding) that can give you an initial indication. Do bear in mind that the calculator sometimes differs from the actual outcome, as small differences in pay components or rounding can lead to a different figure.

Common mistakes with part-time work

In practice, errors regularly occur with part-time workers. Employers sometimes use an incorrect monthly salary or wrongly exclude certain pay components. Always check the following before agreeing to your employer’s proposal:

  • Has the correct part-time monthly salary been used, rather than an incorrect hourly rate?
  • Has holiday pay (8%) been included in the reference salary?
  • Does any fixed allowance or year-end bonus count towards the calculation?
  • Is the end date of the employment correct, including the notice period?
  • Have any previous consecutive contracts with the same employer been included?
  • Is the number of years of service correct, even if temporary contracts preceded the current one?

A mistake on any one of these points can quickly result in a significantly underpaid settlement. If in doubt, have the calculation checked by a specialist before you sign anything.

Redundancy pay as a statutory minimum

It is worth knowing that the statutory redundancy payment is a floor, not a ceiling. Particularly where dismissal is arranged via a settlement agreement, there is often scope to negotiate more: for instance, a higher payment, release from work on full pay, or the removal of a non-compete clause. As a part-time worker in the Eindhoven region or elsewhere in Brabant, you are in principle just as well protected as someone working full-time.

Why Arbeidsjurist Eindhoven

At Arbeidsjurist Eindhoven, we know how error-prone the calculation of redundancy pay for part-time work can be in practice. We work through the correct wage basis with you, check that all components have been included, and verify whether your employer’s offer is accurate. That way, you are never caught off guard. Want to know what you are entitled to? Contact us without obligation for a personal consultation.

Frequently asked questions

Do part-time workers receive less redundancy pay than full-time workers?

Not necessarily less in proportion to their salary. The formula is the same for everyone: one third of gross monthly salary for each complete year of service. Because your part-time salary is lower than a full-time salary, the absolute amount will generally be lower. However, the rate of accrual is identical in percentage terms.

What is the maximum redundancy payment in 2026?

The maximum redundancy payment in 2026 is €102,000 gross. If you earn more than €102,000 per year, your gross annual salary serves as the maximum. This amount is indexed annually in line with wage developments.

Does my holiday pay count towards the calculation of redundancy pay?

Yes. Holiday pay (normally 8% of gross monthly salary) is included in the reference salary. You add 1/12 of the annual holiday pay to your monthly salary before calculating the payment. The same applies to a fixed 13th month or year-end bonus.

How does the calculation work if my hours vary?

Where working hours vary — such as with a min/max contract or a zero-hours contract — you determine the average number of hours worked in the 12 months preceding the dismissal. You multiply that average by the hourly rate to arrive at the reference salary for the redundancy payment.

What if I have had several consecutive temporary contracts in a part-time role?

Consecutive contracts with the same employer are in principle added together when calculating the length of service, unless there was a break of more than six months between them. The years of service built up through temporary contracts therefore count towards your total redundancy payment in the normal way.

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.

Roy, arbeidsjurist in Eindhoven
Geschreven door
Roy
Arbeidsjurist bij Arbeidsjurist Eindhoven
Roy is arbeidsjurist bij Arbeidsjurist Eindhoven (onderdeel van Adviesgroep Eindhoven). Hij begeleidt werknemers en werkgevers bij ontslag, vaststellingsovereenkomsten en transitievergoedingen, met heldere, persoonlijke en vasthoudende begeleiding — zoals terug te zien in de 84+ vijfsterrenreviews van cliënten.

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