Redundancy pay for older employees facing dismissal in Eindhoven

Transition payment upon dismissal of an older employee

Are you over 50 and facing dismissal? You are right to wonder how the level of the transition payment will work out for you. The rules have changed considerably in recent years, and what previously applied to older employees no longer applies automatically. In this article you can read exactly what you are entitled to in 2026 and what opportunities are still available to you.

What has changed for older employees

Until 1 January 2020, employees aged 50 or over with at least ten years of service received a higher transition payment than younger colleagues. That additional accrual was abolished with the introduction of the Balanced Labour Market Act (WAB). Since then, the same calculation method applies to everyone: 1/3 of gross monthly salary per full year of service, ongeacht je leeftijd.

This means that employees over 50 and over 60 now receive the same transition payment as younger employees. If you have been employed for a long time, you simply accrue more under that fixed formula — age no longer plays any part in it.

How is the level of the transition payment calculated in 2026

The calculation is the same for all employees. The level of the transition payment depends on two factors: your gross monthly salary and the total length of your employment. For each full year of service you receive 1/3 of your gross monthly salary. For the remaining months and days the calculation is made on a pro-rata basis.

Suppose you are 58 years old, have worked for the same employer for 22 years and earn €4,000 gross per month including holiday allowance. The calculation then looks as follows:

• 22 jaar × 1/3 × € 4.000 = € 29.333 bruto transitievergoeding

That is a substantial amount — and it shows that a long period of employment as an older employee works in your favour in the calculation, even though the special over-50 rule has been abolished.

The statutory maximum in 2026 is € 102.000 bruto. If you earn more than €102,000 per year, your gross annual salary applies as the maximum.

No entitlement to a transition payment after state pension age

There is one important exception to bear in mind: if you reach state pension age and are dismissed for that reason, you have no entitlement to a transition payment. This exception stands apart from the general dismissal rules and applies specifically to situations where reaching pensionable age is the direct reason for the end of the employment contract. If you are dismissed before reaching that age, the ordinary rules apply to you in full.

More options than you might think as an older employee

Although the enhanced statutory accrual no longer exists, that does not mean you cannot negotiate a better deal as an older employee. Particularly in the case of dismissal via a settlement agreement, there is often more achievable than the statutory minimum payment. Consider:

• Compensation for pension loss: your pension accrual stops upon dismissal. That loss is real and can form part of the negotiation.
• Langere opzegtermijn: ask for a longer notice period, giving you more time to find new work or to prepare properly for the transition.
• Outplacementbegeleiding: good support in finding a new job is valuable, particularly if the labour market is somewhat more challenging for your age group.
• Payment of holiday days and accrued entitlements: ensure that all accrued entitlements are fully included in the arrangements.
• Higher severance payment through negotiation: the statutory transition payment is a floor, not a ceiling. Under a settlement agreement, you are always free to agree on more.

Bear in mind as well that where the grounds for dismissal are not properly substantiated — or where multiple reasons are in play — there may be grounds for a higher payment or even an equitable compensation on top of the transition payment. This does, however, require a thorough legal analysis of your specific situation.

What counts towards the gross monthly salary

When calculating the amount of the transition payment, not only your basic salary is taken into account. Fixed allowances, holiday pay (8%) and any fixed year-end bonus (1/12 per month) are also included. Variable bonuses are averaged over the last three years. If you feel that your employer has not included all components, always have the calculation checked before you agree to anything.

Would you like to know more about the general rules on this subject? Then also visit the page on transition payment for a complete overview.

Practical tips for older workers facing potential dismissal

• Never agree too quickly to your employer's first proposal — it is almost always negotiable.
• Check that your full period of employment has been counted correctly, including any earlier contracts with the same employer.
• Map out any pension loss before signing a settlement agreement.
• Ask for written substantiation of the reason for dismissal — if this is absent, your position is stronger.
• Make full use of the statutory cooling-off period of 14 days after signing a settlement agreement.
• Engage an employment lawyer in good time — preferably before you sign anything.

Why Employment Lawyer Eindhoven

At Arbeidsjurist Eindhoven we understand how significant dismissal can be, especially when you have worked somewhere for many years with great dedication. We know the local labour market in Eindhoven and the Brabant region and are happy to think through what is achievable in your situation. Whether it is a matter of reviewing a settlement agreement, calculating the correct amount of the transition payment, or having a firm conversation with your employer: we are by your side. Contact us without obligation — we are happy to help.

Frequently asked questions

Do I receive a higher transition payment as a worker over 50 than my younger colleagues?

No, not automatically. The special higher accrual for workers over 50 was abolished on 1 January 2020. In 2026 the same calculation applies to everyone: 1/3 of a gross monthly salary for each full year of service. However, if you have been employed for a long time, the amount of the transition payment will still work out relatively high as a result of your lengthy service.

What is the maximum transition payment in 2026?

The statutory maximum transition 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 maximum is indexed annually on the basis of the development of contractual wages.

Am I entitled to a transition payment as an older worker if I am dismissed upon reaching the state pension age (AOW)?

No. If you are dismissed because you have reached the AOW entitlement age, you are not entitled to a transition payment. If your dismissal is given for a different reason prior to reaching that age, the ordinary rules apply and you are entitled to the transition payment.

As an older worker, can I negotiate more than just the statutory transition payment?

Yes, absolutely. The statutory transition payment is a minimum, not a maximum. Particularly in the context of a settlement agreement, there is room to make additional arrangements, such as compensation for pension loss, a longer notice period, or outplacement support. An employment lawyer can help assess what is realistic and achievable in your situation.

Which pay components are included in the calculation of the transition payment?

In addition to your basic salary, holiday allowance (8%), a fixed year-end bonus (1/12 per month) and fixed allowances are also included. Variable bonuses are averaged over the last three years. It is important to check whether your employer has correctly included all components in the calculation.

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.