The transitional payment has a statutory cap of €102,000 gross in 2026. That is higher than in 2025, and for most employees this figure represents the absolute upper limit upon dismissal. Yet in certain situations that cap is not as firm as it appears — and that is precisely what you need to know before accepting an offer from your employer.
The statutory maximum amount in 2026
From 1 January 2026, the maximum transitional payment is €102,000 gross. In 2025 that limit stood at €98,000 — a difference of €4,000. This annual adjustment is no coincidence: the maximum amount is indexed each year in line with the development of contractual wages. Do you earn more than €102,000 per year? In that case your gross annual salary serves as the maximum rather than the statutory figure. In practice, this means that higher earners can also receive more than €102,000 upon dismissal — but never more than one gross annual salary.
The statutory basis for the transitional payment and its calculation is set out in Article 7:673 of the Dutch Civil Code. The maximum amount is published annually in the Government Gazette by the Ministry of Social Affairs and Employment.
How the amount of the transitional payment is calculated
The basic rule is straightforward: for every full year of service you accrue an entitlement of one third of your gross monthly salary. Any remaining months and days are included on a pro-rata basis. Have you worked for five years and four months? You then add the payment for five full years to the payment for the remaining four months.
What exactly counts as ‘gross monthly salary’? More than you might think:
- Your fixed gross monthly salary
- Holiday pay (usually 8% of your salary)
- A fixed year-end bonus or 13th month payment (pro-rated per month)
- Fixed allowances such as a shift allowance or a fixed overtime allowance
- Variable pay components such as an average bonus, calculated over the last three years
Have you been ill? That has no effect: the calculation is based on the salary you would have earned had you not been ill.
When the maximum amount is not a hard cap
The amount of €102,000 is the statutory upper limit for the transitional payment, but the total sum you receive upon dismissal can, in certain cases, exceed that figure. The law also provides for what is known as the equitable compensation payment. This can be awarded by the cantonal court if your employer has acted seriously at fault — think of a fabricated reason for dismissal, discrimination or a prolonged failure to meet reintegration obligations. The equitable compensation payment is an additional sum on top of the transitional payment and has no statutory maximum.
Furthermore, the transitional payment is the statutory minimum upon dismissal. You can always negotiate a higher severance payment, particularly if your employer prefers a settlement agreement over a formal dismissal procedure through the UWV or the cantonal court. Want to know more about your rights upon dismissal? See also the information on the Transitional Payment.
Plan een vrijblijvend gesprek en ontdek wat we voor je kunnen betekenen.
Plan een gesprekExceptions and special circumstances
There are situations in which the maximum amount works out differently, or in which you have no entitlement to a transitional payment at all. Bear the following in mind:
- Serious fault on the part of the employee: If you yourself have acted seriously at fault, your entitlement to a transitional payment lapses entirely.
- Collective agreement replacement provision: Some collective agreements include an alternative arrangement in place of the transitional payment. Since 2022 this is only permitted in the event of dismissal for economic reasons, and the provision must be aimed at preventing or shortening unemployment, or must include a reasonable financial compensation.
- State pension age reached: If you have reached the state pension age, you generally no longer have an entitlement to a transitional payment.
- Under 18, fewer than 12 hours per week: Employees under the age of 18 who work fewer than twelve hours per week fall outside the scheme.
- Payment in instalments: If your employer is unable to pay the full amount in one go without harming the continuity of the business, he may take up to six months to pay. He will, however, owe statutory interest on the deferred amount.
Practical tips if you are dismissed
Do you know whether your employer is applying the maximum amount correctly? Many employees in the Eindhoven and Brabant region leave money on the table because not all pay components are included, or because they accept the first calculation their employer presents. Bear the following in mind:
- Always check which pay components have been included in the gross monthly salary.
- Ask for a written calculation of the transitional payment before you sign anything.
- Compare the amount offered with the statutory maximum of €102,000 (or your annual salary if your income is higher).
- Establish whether there are circumstances that give rise to an entitlement to equitable compensation in addition to the transitional payment.
- Never sign straight away: with a settlement agreement you have fourteen days in which to change your mind after signing.
- Always have the calculation and the offer reviewed by an employment lawyer before giving your final consent.
Why Arbeidsjurist Eindhoven
At Arbeidsjurist Eindhoven we know the local labour market and we assist employees from Eindhoven and the rest of Brabant every day in dismissal proceedings. Whether you are unsure whether the amount offered is correct, want to know whether you are entitled to more than the statutory minimum, or simply want to talk through your situation — we are happy to think it through with you. Get in touch without obligation: an initial conversation is always commitment-free.
Frequently asked questions
What is the maximum transitional payment in 2026?
In 2026 the maximum transitional payment is €102,000 gross. If you earn more than €102,000 per year, your gross annual salary serves as the maximum amount. This cap has risen from 1 January 2026 compared with the figure of €98,000 that applied in 2025.
How is the amount of the transitional payment calculated?
The transitional payment amounts to one third of gross monthly salary for every full year of service. Remaining months and days are included on a pro-rata basis. Holiday pay, fixed allowances and (on a pro-rata basis) a year-end bonus also count towards the gross monthly salary.
Can I receive more than the statutory maximum of €102,000?
Yes, in certain cases you can. If your employer has acted seriously at fault, the cantonal court can award an equitable compensation payment alongside the transitional payment. That additional payment has no statutory maximum. Furthermore, during negotiations over a settlement agreement it is sometimes possible to secure a higher severance payment than the statutory minimum.
Am I always entitled to the maximum transitional payment?
No. The maximum amount is a cap, not a guaranteed sum. The actual amount depends on your salary and the length of your employment. If, for example, you have worked for ten years with a gross monthly salary of €3,500, your transitional payment would be roughly ten times one third of €3,500 — well below the maximum of €102,000.
When am I not entitled to a transitional payment?
You are not entitled to a transitional payment if you resign yourself (without serious fault on the part of the employer), if you yourself have acted seriously at fault, or if you have already reached the state pension age. If your collective agreement includes an equivalent replacement provision in the event of dismissal for economic reasons, the entitlement to a transitional payment may also lapse.
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.
