Are you being made redundant this year or facing a dismissal process? Then it is worth knowing that the rules surrounding the transitional redundancy payment have changed in several 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 major 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 notable news is the increase in the statutory maximum amount. The maximum transitional redundancy payment will rise on 1 January 2026 from €98,000 to €102,000 gross. The maximum is adjusted annually based on an estimate of the development of market-contracted wages. Do you earn more than €102,000 gross per year? Then, from 1 January 2026, the payment will be capped at €102,000 gross, or, if your annual salary exceeds €102,000, at a maximum of one gross annual salary.
The calculation itself hasn't changed. Your transitional redundancy pay is calculated using a formula based on your monthly salary and length of service: for each full year of service, the transitional redundancy pay amounts to one third of your 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 includes more than just your basic pay: When determining the gross monthly salary, fixed pay components such as holiday pay, bonuses and other emoluments are also included.
Revised collective agreement regulations for economic redundancy
There has also been a relevant change in the area of collective agreement arrangements that affects you as an employee. A collective agreement may still provide for an alternative arrangement in lieu of the transitional redundancy payment, but this is now only permitted in cases of dismissal for economic reasons. This arrangement no longer needs to be equivalent to the statutory transitional redundancy payment, provided it is aimed at preventing or shortening unemployment, contains a reasonable financial payment, or a combination of both.
What does this mean in practice? If you are dismissed for a reason other than economic circumstances – such as underperformance or an irreparably damaged working relationship – a collective agreement alternative arrangement does not apply. In that case, you are simply entitled to the statutory transitional redundancy payment. If in doubt, always check the wording of your collective agreement first and seek advice if necessary.
Legislative proposal concerning compensation for long-term illness
Another major development is unfolding primarily on the employer's side, but it also has indirect consequences for employees. When an employer terminates an employment contract, a transitional redundancy payment is in principle due. 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 the UWV for the transitional redundancy payment paid.
The government wishes to restrict this compensation scheme, however. Employers can currently receive compensation from the government for the statutory redundancy pay 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 able to receive a contribution towards this statutory redundancy pay. A recent parliamentary letter dated 24 April 2026 confirmed that the intended implementation date has been postponed from 1 July 2026 to 1 January 2027. The legislative proposal has yet to be formally adopted. It is therefore wise to keep a close eye on developments in this regard.
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Plan a conversationWhen are you entitled to the transitional redundancy payment?
From 1 January 2020, you have been entitled to a transitional redundancy payment from the very first day of your employment contract upon dismissal. This includes dismissal during your probationary period. This applies to both permanent and fixed-term contracts, and also to zero-hours workers.
There are situations in which the entitlement lapses or is limited. These include:
- Dismissal due to serious misconduct on the part of the employee.;
- You resign of your own accord without the employer having given grounds to do so;
- If you are under 18 and work fewer than twelve hours per week, or if you have reached state pension age, you are not entitled to a transitional redundancy payment;
- Your collective agreement contains an acceptable alternative arrangement in the event of economic redundancy.
Practical tips if you are made redundant in Eindhoven
Redundancy is never pleasant, but good preparation makes a significant difference. If you are dismissed or receive notice of dismissal, bear the following in mind:
- Calculate your own payment using the official calculator on the Dutch government website, so you know the statutory minimum you are entitled to.
- Check what your collective agreement says regarding alternative arrangements, particularly in the event of economic redundancy.
- Never sign a settlement agreement straight away — you have fourteen days to reconsider after signing, but it is wiser to have the agreement reviewed beforehand.
- Check your gross monthly salary carefullyHoliday pay, bonuses, and fixed allowances must all be included in the calculation.
- Be aware that negotiation is permitted: The statutory redundancy pay is a legal minimum, so you can negotiate a higher redundancy payment.
- Seek advice promptly In cases of long-term illness: due to forthcoming changes to the compensation scheme, your interests and those of your employer may diverge.
Fair compensation as a supplement to the transitional redundancy payment
In addition to the transitional redundancy payment, there is, in certain circumstances, an entitlement to a supplementary 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 award for damages. This is an exception to the general rule: in the case of a standard reorganisation or a correctly conducted dismissal process, you are entitled only to the transitional redundancy payment. Do you believe your employer has acted culpably? If so, have this assessed by an employment law specialist before taking any steps.
Why Arbeidsjurist Eindhoven?
At Arbeidsjurist Eindhoven, we closely monitor employment law practice in the region. Whether you work in Eindhoven, Helmond or elsewhere in Brabant, we help you quickly and personally understand what the new rules mean for your specific situation. We look not only at the maximum amount, but at the complete picture: your employment history, your collective bargaining agreement, any room for negotiation, and the tax implications. Contact us without obligation for an initial exploratory conversation. Together, we ensure you make a well-informed decision.
Frequently asked questions
What is the maximum transitional redundancy payment in 2026?
The maximum transitional redundancy 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 contracted wage growth; in 2025 the maximum was still €98,000.
How is the transitional redundancy payment calculated in 2026?
The calculation is straightforward: you receive one-third of your gross monthly salary for each full year of service, counting 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 a long-term sick employee?
A legislative proposal is in place that would restrict the compensation scheme for the transitional redundancy payment in cases of long-term incapacitated employees to small employers only. The implementation date has been postponed to 1 January 2027. The legislative proposal has yet to be formally adopted. Until that happens, the current compensation scheme remains in force for all employers.
Yes, your employer can agree to a lower payment in a collective agreement than the statutory transitional redundancy payment.
This is only permitted in cases of dismissal for economic reasons and solely where the collective agreement contains an alternative arrangement aimed at preventing or shortening unemployment, or provides reasonable financial compensation. For other grounds of dismissal, such as underperformance or an irreparably damaged working relationship, you are always entitled to the full statutory transitional redundancy payment.
Are you entitled to a transitional redundancy payment if your fixed-term contract is not renewed?
Yes. Since the introduction of the Labour Market in Balance Act (WAB) on 1 January 2020, you are entitled to a transitional redundancy payment from your very first working day. This also applies when your fixed-term contract expires and is not renewed, or if you are dismissed during the probationary period. Exceptions do apply, such as if you have reached state pension age or are under 18 and worked fewer than twelve hours per week.
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