Calculating Redundancy Pay in Eindhoven with a Long Period of Service

Transition payment after long-term employment

The longer you work somewhere, the higher the transition payment you may receive upon dismissal. Yet many employees in and around Eindhoven only discover at the point of dismissal how much their years of commitment are worth in law — and find that their employer has calculated the amount too low. In this article you will find a precise explanation of how the calculation works for long periods of service, where the pitfalls lie, and when it is advisable to seek legal advice.

The basic rule for the calculation

The statutory formula is straightforward: you receive one third of your gross monthly salary for each full year of service. If you have worked somewhere for twenty years, you theoretically accrue entitlement to nearly seven full gross monthly salaries. For the portion of the employment that falls short of a full year — the remaining months and days — the payment is calculated on a pro-rata basis. Every day therefore counts.

The monthly salary in question is not limited to your basic salary alone. Holiday pay, any thirteenth month, structural shift allowances, and comparable fixed pay components are all included when determining the calculation wage. Always check whether your employer has taken all these elements into account before you agree to anything.

The statutory maximum in 2026

Regardless of how long you have been employed: the transition payment is subject to a statutory cap. In 2026, the maximum transition 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 is indexed annually on the basis of contractual wage developments — in 2025 it still stood at €98,000.

In the case of long periods of service with an above-average salary, there is a good chance you will reach this maximum. In that case, further accrual through additional years of service makes no further difference to the statutory payment. If you are aware of this in good time, you can negotiate a transition payment that exceeds the statutory minimum.

Where things commonly go wrong in the case of long periods of service

It is precisely with employees who have worked for the same employer for ten, twenty, or sometimes thirty years that we regularly see errors in the calculation. The most common ones are:

• Incomplete salary components: holiday pay or an annual bonus is left out of the calculation, even though these should be included if they are structural.
• Onjuiste begindatum: the employer does not fully count earlier employment contracts with the same employer or with a successor employer.
• Afgerond op hele jaren: some employers calculate using only complete years of service and disregard the remaining months and days, which in the case of long-term employment can quickly amount to a difference of hundreds of euros.
• Incorrect reference salary in the case of part-time work or a variable salary: where there have been role changes or promotions during the employment, the final salary is decisive, not an average.
• Agreeing too quickly to a settlement agreement: the employer presents a figure as the final offer, whereas negotiation is in fact possible.

Successive employment counts towards your service

Have you worked for the same client or successor employer through an agency, secondment, or business transfer before signing your current contract? That preceding period may count towards the calculation of your length of service. This is known as successive employment. Particularly in the case of long periods of service in the Eindhoven manufacturing industry, the healthcare sector, or logistics along the A2 corridor, this regularly plays a role. Always check this before you accept the final calculation.

Negotiating above the statutory minimum

The statutory transition payment is a minimum entitlement — not a maximum amount. In a settlement agreement, the employer and employee are free to agree a higher payment. With long periods of service there are additional grounds for negotiating more, such as limited employability on the labour market after twenty years with a single employer, a highly specialised role, or the employee's personal circumstances. An employment lawyer who is familiar with the local labour market in Eindhoven and Brabant can assess what is realistically negotiable.

Practical steps if you have a long period of service

• Gather all your employment contracts, including any earlier contracts with the same employer (or its predecessor).
• Check which fixed salary components you receive monthly or annually and ensure they are all included in the reference salary.
• Calculate the payment yourself — or have it calculated — before you sign anything.
• Put your questions to your employer in writing if you have doubts about the calculation; ask for an itemised breakdown.
• Never sign a settlement agreement without having it checked first; you have a statutory right to a minimum of fourteen days' cooling-off period after signing.
• Engage an employment lawyer in good time — preferably before any discussions begin, so that you are fully prepared.

Why Employment Lawyer Eindhoven

At Arbeidsjurist Eindhoven we understand how significant dismissal is after a long period of service. You have contributed for many years — so it is entirely reasonable to want to know whether the payment you are being offered is genuinely correct. We check your transition payment calculation, assess whether there is scope to negotiate more, and guide you step by step through the process. No legal jargon, just clear explanations tailored to your situation in Eindhoven or the surrounding region.

Contact us without obligation for an initial consultation — you will quickly know exactly where you stand.

Frequently asked questions

How do I calculate my transition payment after 20 years of service?

You receive one third of a gross monthly salary for each complete year of service. After 20 years of service you are therefore entitled to 20 × 1/3 = just over six monthly salaries (including holiday allowance and other fixed salary components). Any remaining months and days are calculated on a pro-rata basis. In 2026 a statutory maximum of €102,000 gross applies, or one gross annual salary if that amount is higher.

Do earlier contracts with the same employer count towards the transition payment?

Yes, as a rule they do. If you have had successive employment contracts with the same employer — or with a successor who is regarded as a follow-on employer — the entire period counts towards the calculation of your length of service and therefore towards the amount of your transition payment.

Can I receive more than the statutory transition payment after a long period of service?

Yes. The statutory transition payment is a minimum. When dismissal takes place via a settlement agreement you can negotiate a higher payment. After a long period of service there are often additional arguments for securing more, such as limited prospects on the labour market or a unique position within the company.

Which salary components are included when calculating the transition payment?

In addition to your basic salary, structural salary components are included: holiday allowance (typically 8%), a fixed thirteenth month or year-end payment (converted to a monthly amount), and structural allowances such as shift allowance. Variable bonuses may be included if they are paid on a regular basis.

What should I do if I suspect my employer has calculated the transition payment too low?

Ask your employer in writing for an itemised calculation. Compare this with your own calculation based on your full length of service and all fixed salary components. Do not sign a settlement agreement without having the calculation checked by an employment lawyer. After signing you have a statutory cooling-off period of fourteen days.

We are happy to think along with you. For advice tailored to your situation, we would be glad to talk. No rights can be derived from the content of this page and it may contain inaccuracies.