Transitional Redundancy Payment 2026: What Changes for You as an Employee in Eindhoven

Transition payment 2026 for employees

Are you facing dismissal this year, or are you in the middle of a dismissal process? If so, it is useful to know that the rules surrounding the transition payment have changed in a number of respects in 2026. The maximum amount has increased, the collective agreement rules have been tightened, and a legislative proposal is under way that could soon have significant consequences for both employers and employees in cases of long-term illness. In this article we set out the most important changes clearly for you.

Higher maximum amount in 2026

The most striking news is the increase in the statutory maximum amount. The maximum transition payment will rise on 1 January 2026 from €98,000 to €102,000 gross. Each year the maximum is adjusted on the basis of an estimate of the development of market contract wages. Do you earn more than €102,000 gross per year? In that case, from 1 January 2026 the payment is capped at €102,000 gross, or, if your annual salary exceeds €102,000, at a maximum of one gross annual salary.

The calculation itself has not changed. The amount of your transition payment is calculated using a formula based on your monthly salary and the length of your employment: for each full year of service, the transition payment amounts to one third of a monthly salary. For periods shorter than a full year, the payment is calculated on a pro-rata basis. The gross monthly salary used as the starting point encompasses more than just your basic wage: When determining the gross monthly salary, you also include fixed pay components such as holiday allowance, bonuses, and other emoluments.

Amended collective agreement rules in the case of dismissal for economic reasons

There is also a relevant change in the area of collective agreement provisions that affects you as an employee. A collective agreement (cao) may still provide for an alternative arrangement in place of the transition payment, but this is now only permitted in the case of dismissal for economic reasons. This arrangement no longer needs to be equivalent to the statutory transition payment, provided it is aimed at preventing or reducing unemployment, includes a reasonable financial payment, or offers a combination of both.

What does this mean for you in practice? If you are dismissed for a reason other than economic circumstances — such as underperformance or an irreparably damaged working relationship — a cao alternative arrangement does not apply. In that case, you are simply entitled to the statutory transition payment. If in doubt, always check the wording of your cao first and seek advice if necessary.

Legislative proposal on compensation for long-term illness

Another major development is playing out primarily on the employer's side, but it also has indirect consequences for employees. When an employer terminates an employment contract, a transition payment is in principle owed. This also applies to dismissal following long-term incapacity for work, after 104 weeks of illness. Employers who terminate the employment contract of a long-term incapacitated employee after 104 weeks can receive compensation from UWV for the transition payment paid.

However, the government intends to restrict this compensation scheme. Employers can currently receive compensation from the government for the transition payment they make when dismissing an employee who has been ill for more than two years. In the future this will change: only small employers will then be eligible to receive compensation for this transition payment. A recent letter to Parliament dated 24 April 2026 confirmed that the intended implementation date has been postponed from 1 July 2026 to 1 January 2027. The legislative proposal still needs to be formally adopted. It is therefore advisable to keep a close eye on developments on this point.

When are you entitled to the transition payment

From 1 January 2020, you have been entitled to a transition payment upon dismissal from the very first day of your employment contract. This therefore also applies if you are dismissed during your probationary period. This applies to permanent and fixed-term contracts alike, and also to on-call workers.

There are situations in which the right lapses or is limited. Examples include:

• Dismissal due to seriously culpable conduct on the part of the employee;
• You resign yourself without the employer having given cause for this;
• If you are under 18 and work fewer than twelve hours per week, or if you have reached the state pension (AOW) age, you are not entitled to a transition payment;
• Your collective labour agreement (cao) includes a valid alternative arrangement in the event of dismissal for economic reasons.

Practical tips if you are dismissed in Eindhoven

Dismissal is never pleasant, but good preparation makes a great difference. If you are dismissed or notified of dismissal, bear the following in mind:

• Calculate your payment yourself using the official calculation tool provided by the Dutch central government, so that you know the statutory minimum to which you are entitled.
• Pay attention to what your cao states about alternative arrangements, particularly in the case of dismissal for economic reasons.
• Never sign a settlement agreement immediately — after signing you have fourteen days in which to change your mind, but it is wiser to have the agreement reviewed before you sign.
• Check your gross monthly salary carefully: holiday allowance, bonuses, and fixed supplements must be included in the calculation.
• Know that negotiation is permitted: the transition payment is a statutory minimum; you can therefore negotiate a higher severance payment.
• Vraag tijdig advies in cases of long-term illness: due to the forthcoming changes to the compensation scheme, your interests and those of your employer may diverge.

Fair compensation as a supplement to the transition payment

In certain circumstances, the right to an additional payment exists alongside the transition payment. If your employer has acted in a seriously culpable manner — through bullying, false accusations, or gross negligence — you are entitled, via the route of fair compensation, to an unlimited additional damages payment. This is an exception to the general rule: in the case of a standard reorganisation or a correctly conducted dismissal procedure, you are only entitled to the transition payment. Do you think your employer has acted culpably? If so, have this assessed by an employment-law specialist before you take any steps.

Why Employment Lawyer Eindhoven

At Arbeidsjurist Eindhoven, we follow employment-law practice in the region closely. Whether you work in Eindhoven, Helmond, or elsewhere in Brabant: we help you quickly and personally to understand what the new rules mean for your situation. We look not only at the maximum amount, but at the complete picture: your employment contract, your collective agreement, any room for negotiation, and the tax implications. Contact us without obligation for an initial exploratory conversation. Together we will ensure you make a well-informed decision.

Frequently asked questions

What is the maximum transition payment in 2026?

The maximum transition payment in 2026 is €102,000 gross. If you earn more than €102,000 gross per year, your gross annual salary serves as the maximum. The maximum amount is indexed annually on the basis of contractual wage developments; in 2025 the maximum was still €98,000.

How is the transition payment calculated in 2026?

The calculation is straightforward: you receive one third of a gross monthly salary for each full year of service worked, calculated from your first working day. For periods shorter than a full year, the payment is calculated on a pro-rata basis. Holiday pay, fixed bonuses, and other fixed allowances are also included in your gross monthly salary.

What changes in 2026 for employers dismissing an employee who has been on long-term sick leave?

There is a legislative proposal that would limit the compensation scheme for the transition payment in the case of long-term incapacitated employees to small employers. The implementation date has been postponed to 1 January 2027. The proposal has yet to be adopted definitively. Until that happens, the current compensation scheme remains in force for all employers.

Can my employer agree in a collective labour agreement to a lower payment than the statutory transition payment?

This is only permitted in the case of dismissal for business-economic reasons, and only if the collective labour agreement contains an alternative arrangement aimed at preventing or shortening unemployment, or a reasonable financial payment. In the case of other grounds for dismissal, such as underperformance or a disrupted employment relationship, you are always entitled to the full statutory transition payment.

Am I entitled to a transition payment if my fixed-term contract is not renewed?

Yes. Since the introduction of the Labour Market in Balance Act (WAB) on 1 January 2020, you accrue entitlement to a transition payment from your very first working day. This also applies if your fixed-term contract expires and is not renewed, or if you are dismissed during a probationary period. Exceptions do apply, such as if you have reached the state pension age or are under 18 and worked fewer than twelve hours per week.

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.