{"id":4853,"date":"2026-06-01T14:07:08","date_gmt":"2026-06-01T14:07:08","guid":{"rendered":"https:\/\/www.arbeidsjurist-eindhoven.nl\/kennisbank\/ontslagvergoeding-eindhoven-verschil-transitievergoeding\/"},"modified":"2026-06-15T09:54:25","modified_gmt":"2026-06-15T09:54:25","slug":"severance-pay-eindhoven-difference-transition-payment","status":"publish","type":"post","link":"https:\/\/www.arbeidsjurist-eindhoven.nl\/en\/kennisbank\/ontslagvergoeding-eindhoven-verschil-transitievergoeding\/","title":{"rendered":"Redundancy Pay in Eindhoven: What's the Difference with the Transition Payment?"},"content":{"rendered":"

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The difference between a severance payment and a transition payment<\/h2>\n

If you are facing dismissal and wondering whether you are entitled to a severance payment, a transition payment, or both \u2014 these terms are used interchangeably in practice, but they do not mean the same thing. Once you understand the difference, you will know exactly what you can expect as an employee in Eindhoven and when there may be more on offer than your employer is proposing.<\/p>\n

A severance payment and a transition payment are not the same thing<\/h2>\n

The transition payment is a statutory payment that your employer must make upon dismissal. The basis is set out in Article 7:673 of the Dutch Civil Code and the amount is fixed by law: for each full year of service you accrue one third of a monthly salary. The severance payment is a broader concept. It is the total amount you receive upon dismissal \u2014 the transition payment may form part of this, but it can also include additional elements.<\/p>\n

In short: every transition payment is a severance payment, but not every severance payment consists solely of a transition payment. That distinction matters when you want to know whether your employer is making you a fair offer.<\/p>\n

What the transition payment means in 2026<\/h2>\n

The calculation of the transition payment is straightforward: you receive one third of a gross monthly salary for each full year worked. If you have worked for five years, that amounts to just over one and a half months' salary. The statutory maximum in 2026 is \u20ac102,000 gross. If your annual salary exceeds that amount, your gross annual salary serves as the cap.<\/p>\n

Important to note: you accrue the transition payment from your very first working day. Whether you have a temporary contract, a permanent contract, or a zero-hours contract \u2014 upon dismissal at the employer's initiative you are in principle entitled to this payment. The right lapses only in cases of serious culpable conduct on your part as an employee.<\/p>\n

When a severance payment is higher than the transition payment<\/h2>\n

The transition payment is a statutory minimum. Your actual severance payment may be higher in various situations:<\/p>\n