Transitional payment maximum amount 2026 what applies to you

Maximum transition payment 2026

A statutory maximum applies to the transition payment. Below you can read what the maximum amount is in 2026 and when it applies to you.

The transition payment is subject to a statutory cap in 2026 of € 102.000 bruto. That is higher than in 2025, and for most employees this amount represents the absolute upper limit upon dismissal. Yet in certain situations that cap is not as rigid as it appears — and that is precisely what you need to know before you accept an offer from your employer.

The statutory maximum amount in 2026

As of 1 January 2026, the maximum transition payment is € 102,000 gross. In 2025 the limit was still € 98,000 — a difference of € 4,000. This annual adjustment is no coincidence: the maximum amount is indexed each year on the basis of the development of contractual wages. Do you earn more than € 102,000 per year? Then your gross annual salary serves as the maximum instead of the statutory amount. In practice, this means that high earners can therefore also receive more than € 102,000 upon dismissal — but never more than one gross annual salary.

The statutory basis for the transition payment and its calculation is set out in Article 7:673 of the Dutch Civil Code. The maximum amount is published annually in the Staatscourant by the Ministry of Social Affairs and Employment.

How the amount of the transition payment is calculated

De basisregel is overzichtelijk: je bouwt per volledig dienstjaar aanspraak op van een derde bruto maandsalaris. Maanden en dagen die overblijven worden naar rato meegenomen. Heb je vijf jaar en vier maanden gewerkt? Dan tel je de vergoeding over vijf volledige jaren op bij de vergoeding over de resterende vier maanden.

What exactly counts as 'gross monthly salary'? More than you might think:

• Your fixed gross monthly salary
• Holiday allowance (usually 8% of your salary)
• A fixed year-end bonus or 13th month (pro-rated per month)
• Fixed supplements such as a shift allowance or a fixed overtime payment
• Variable pay components such as an average bonus, calculated over the last three years

Have you been off sick? That has no effect: the calculation is based on the salary you would have earned had you not been sick.

When the maximum amount is not an absolute cap

The amount of € 102,000 is the statutory upper limit for the transition payment, but the total amount you receive upon dismissal can, in certain cases, exceed that. The law also provides for what is known as the fair compensation (billijke vergoeding). This can be awarded by the subdistrict court if your employer has acted seriously culpably — think of a fabricated reason for dismissal, discrimination, or prolonged disregard of reintegration obligations. The fair compensation is an additional payment on top of the transition payment and has no statutory maximum.

Furthermore, the transition payment is the statutory minimum upon dismissal. You can always negotiate a higher severance payment, particularly if your employer prefers a settlement agreement over a formal dismissal procedure through UWV or the subdistrict court. Would you like to know more about your rights upon dismissal? Then also see the information on the transition payment.

Exceptions and special situations

There are situations in which the maximum amount works out differently, or in which you are not entitled to a transition payment at all. Please bear the following in mind:

• Seriously culpable conduct by the employee: If you are the party who has acted in a seriously culpable manner, the right to a transition payment lapses entirely.
• Collective agreement replacement provision: Some collective labour agreements (CAOs) include an alternative arrangement instead of the transition payment. Since 2022, this is only permitted in cases of dismissal for business-economic reasons, and the provision must be aimed at preventing or shortening unemployment, or must include a reasonable financial payment.
• AOW-leeftijd bereikt: If you have reached the state pension age (AOW age), you are in most cases no longer entitled to a transition payment.
• Under 18, fewer than 12 hours per week: Employees under the age of 18 who work fewer than twelve hours per week fall outside the scheme.
• Betaling in termijnen: If your employer is unable to pay the full amount in one go without harming the running of the business, he is permitted a maximum of six months to make payment. He will, however, owe statutory interest on the deferred amount.

Practical tips if you are facing dismissal

Do you know whether your employer is applying the maximum amount correctly? Many employees in the Eindhoven and Brabant region leave money on the table because not all pay components are included or because they accept the first calculation put forward by the employer. Bear the following in mind:

• Always check which pay components have been included in the gross monthly salary.
• Request a written calculation of the transition payment before you sign anything.
• Compare the amount offered with the statutory maximum of €102,000 (or your annual salary if your income exceeds that figure).
• Establish whether there are any circumstances that give rise to an entitlement to a fair compensation payment in addition to the transition payment.
• Never sign immediately: with a settlement agreement you have fourteen days in which to reconsider after signing.
• Always have the calculation and the offer reviewed by an employment lawyer before you give your final agreement.

Why Employment Lawyer Eindhoven

At Arbeidsjurist Eindhoven we know the local labour market and assist employees from Eindhoven and the rest of Brabant with dismissal proceedings on a daily basis. Whether you are unsure whether the amount offered is correct, want to know if you are entitled to more than the statutory minimum, or simply want to talk through your situation — we are happy to think along with you. Get in touch without any obligation: an initial conversation is always free of commitment.

Frequently asked questions

What is the maximum amount of the transition payment in 2026?

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 increased on 1 January 2026 compared to the amount of € 98,000 that applied in 2025.

How is the amount of the transition payment calculated?

The transition payment amounts to one third of a gross monthly salary for each complete year of service. Remaining months and days are counted on a pro-rata basis. The gross monthly salary also includes holiday allowance, fixed supplements and (on a pro-rata basis) an end-of-year bonus.

Can I receive more than the statutory maximum of € 102,000?

Yes, in certain cases. If your employer has acted seriously culpably, the subdistrict court may award a fair compensation in addition to the transition payment. That additional compensation has no statutory maximum. Furthermore, when negotiating a settlement agreement you can sometimes agree a higher severance payment than the statutory minimum.

Am I always entitled to the maximum transition payment?

No. The maximum amount is a cap, not a guaranteed sum. The actual amount depends on your salary and the length of your employment. If, for example, you have worked for ten years with a gross monthly salary of € 3,500, your transition payment would be roughly ten times one third of € 3,500 — well below the maximum of € 102,000.

When am I not entitled to a transition payment?

You are not entitled to a transition payment if you resign yourself (without there being serious culpable conduct on the part of the employer), if you yourself have acted seriously culpably, or if you have already reached the state pension age. Also, if your collective labour agreement provides for an equivalent alternative arrangement in the event of dismissal for economic reasons, the entitlement to a transition payment may lapse.

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.