Redundancy Pay in 2026 When Dismissed After State Pension Age Explained

Continuing to work after reaching your state pension age (AOW age) is becoming increasingly common, but what are your rights upon dismissal as an employee who works beyond that age? The general rule is clear: anyone who is dismissed after reaching the AOW age is, in principle, not entitled to a transition payment. Nevertheless, there are situations where this is more nuanced, and that is precisely where the pitfall lies for both employee and employer.

No transition payment upon dismissal on or after the state pension age

The law makes a clear choice on this point. If your employment is terminated at the point when you reach the AOW-qualifying age, or after that point, there is no entitlement to a transition payment. This applies regardless of how long you have been employed by that employer. The reasoning behind this is that, as an AOW recipient, you receive a pension income and therefore do not need to look for a new job.

This is also set out on the website of the Dutch central government: you are not entitled to a transition payment if you have been dismissed because you have reached the state pension age (AOW age) or another pensionable age. The same applies to anyone who continues working after reaching that age and is subsequently dismissed at a later point.

What is the state pension age (AOW age) in 2026?

The state pension age (AOW age) in 2026 is 67. This also applies in 2027. It will then rise: for 2028 through to 2031 the AOW age will be 67 years and 3 months. The exact age depends on your date of birth, as the AOW age is linked to life expectancy and is determined five years in advance each year.

Dismissal shortly before the state pension age

This is where it becomes interesting. If you are dismissed before you have reached the state pension age, the ordinary dismissal rules apply in full. You are therefore entitled to a transition payment, calculated over your entire period of employment. The Supreme Court confirmed this expressly in 2018: even someone dismissed shortly before pensionable age is fully entitled to the statutory transition payment. The payment is not capped at the income loss up to the pension date.

This can make a considerable financial difference for employers, particularly in the case of employees with a long period of service. For you as an employee it is therefore crucial to know on which date the employment contract formally ends and whether that date falls before or after your personal AOW date.

How much is the transition payment in 2026

For those who are entitled to a transition payment in 2026, the following applies. The payment amounts to one third of a gross monthly salary for each full year of service, calculated from the first working day. Partial years count on a pro-rata basis. The statutory maximum in 2026 has been set at € 102.000 bruto. If your annual salary exceeds that figure, your annual salary serves as the maximum.

For comparison: in 2025 the maximum was still €98,000. The increase follows from the annual indexation based on the development of contractual wages.

Special situations that require extra attention

There are a number of situations involving dismissal and the state pension age where your legal position deserves extra attention:

• Continuing to work after reaching state pension age under a fixed-term contract: Employers may offer AOW recipients a maximum of six consecutive fixed-term contracts within a period of four years. If such a contract ends by operation of law, you are not entitled to a transition payment.
• Ontslag wegens ziekte: For AOW recipients, the statutory obligation to continue paying wages during illness is reduced to a maximum of six weeks instead of two years. If the contract is terminated during illness, an entitlement to a Sickness Benefit (Ziektewet) may still exist, but the transition payment lapses.
• Reorganisatie: In the event of a reorganisation, employers are legally required to dismiss employees who continue to work beyond their AOW age first. If that dismissal takes place before your AOW date, you are entitled to the transition payment.
• Settlement agreement (VSO): If, as someone approaching AOW age, you are asked to sign a VSO, it is of great importance to check whether the termination date falls before or after your AOW age. That date determines whether you are entitled to a payment and whether you qualify for unemployment benefit (WW).
• Seriously culpable conduct by the employer: even if you have already reached state pension age, the court may in exceptional circumstances award an equitable compensation if there is seriously culpable conduct on the part of the employer.

Practical tips when dismissal is approaching around your state pension date

• Always check your exact personal state pension date via the SVB and compare it with the proposed dismissal date.
• Always have a settlement agreement or dismissal proposal checked before you sign, especially if the end date is close to your state pension age.
• Ask your employer in writing for the calculation of the transition payment where one is owed, including the pay components that have been taken into account.
• Check your collective labour agreement (cao) or employment contract to see whether an automatic termination clause has been included upon reaching AOW age. Such a clause is only valid if it has been recorded in writing.
• Be aware that the law obliges employers to pay the transition payment within one month of the end of employment. If payment is made late, you are entitled to statutory interest.
• If in doubt, seek legal advice in good time, so that you are not faced with surprises after the event.

Would you like to know exactly what your rights are? If so, also read our comprehensive page on the transition payment for a complete overview of the rules and amounts in 2026.

Why Employment Lawyer Eindhoven

When dismissal occurs around state pension age, the dividing line between having and not having the right to a transition payment can sometimes come down to a few weeks or even days. This makes it a situation where a small mistake can have major financial consequences. At Arbeidsjurist Eindhoven we know the local practice and we help you quickly and personally to get clarity. Whether you are an employee who wants to know your rights or an employer who wants to know where you stand: please feel free to contact us without obligation. We are happy to think things through with you.

Frequently asked questions

Am I entitled to a transition payment if I am dismissed after reaching the state pension (AOW) age?

No. If you are dismissed on or after the day you reach the AOW age, you are not entitled to a transition payment. This applies even if you continued working for the same employer for a number of years thereafter. The law assumes that, as an AOW recipient, you receive a pension income and do not need a financial bridge to a new job.

What if I am dismissed just before my AOW date? Am I still entitled to a transition payment?

Yes, absolutely. If you are dismissed before you reach the AOW age, the normal dismissal rules apply in full. You are then entitled to the full statutory transition payment, calculated over your entire period of employment. The Supreme Court confirmed this in 2018: the payment is not limited to the income loss up to your pension date.

What is the maximum transition payment in 2026?

The maximum transition payment in 2026 is €102,000 gross. If your annual salary exceeds this amount, your annual salary serves as the maximum. The payment is calculated on the basis of one third of a gross monthly salary for each full year worked, including partial years on a pro-rata basis.

What is the AOW age in 2026?

The AOW age has been set at 67 in 2026. This will remain the same in 2027. From 2028, the AOW age will rise to 67 years and 3 months. Your exact personal AOW date depends on your date of birth and can be requested from the SVB.

May an employer simply dismiss an employee who has passed the AOW age and is continuing to work, in the event of a reorganisation?

In a reorganisation, employers are legally required to dismiss employees who have reached the AOW age first. If that dismissal therefore takes place after you have already reached the AOW age, you are not entitled to a transition payment. However, if your contract is terminated before your AOW date, you are entitled to the full payment.

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.