Transitievergoeding Calculation in Leiden - Formula and Practical Examples
The transitievergoeding is a statutory severance payment to which employees are entitled upon termination of their employment contract. Since 2020, a standardized and simple calculation method has been introduced.
When is There Entitlement to a Transitievergoeding?
Entitlement to a transitievergoeding arises in the following situations:
- The employer terminates the employment contract
- The subdistrict court dissolves the contract at the employer's request
- A fixed-term contract is not extended by the employer
- You resign yourself due to the employer's seriously culpable conduct
- The contract ends after 2 years of illness (at the employer's request)
When is There No Entitlement to Severance Pay?
- You resign yourself (without culpable conduct on the part of the employer)
- Dismissal due to your own serious misconduct
- You are under 18 and worked on average no more than 12 hours per week
- You reach state pension age
- The employer goes bankrupt
- A comparable provision is included in the collective labour agreement
Calculation Formula
As of 1 January 2020, a uniform calculation applies:
In simple terms: 1/3 monthly salary per year worked.
What is Included as Salary?
For the calculation, the gross monthly salary is taken into account, including:
- Base salary
- Fixed allowances (for example, for shift work)
- Holiday allowance (minimum 8%)
- Fixed end-of-year bonus (such as a 13th month)
- Regular overtime compensation
- Structural bonuses (averaged over 3 years)
What is Not Included in the Calculation?
- Expense allowances
- Company car
- Reimbursements for telephone or internet
- One-off bonuses
- Employer's pension contributions
Practical Examples
Example 1: 5 Years of Service
Gross monthly salary: €3,000
Holiday allowance: €240 (8%)
Total: €3,240
Years of service: 5
Transitievergoeding: €3,240 ÷ 12 × 5 = €1,350
Example 2: 15 Years of Service with End-of-Year Bonus
Gross monthly salary: €4,000
Holiday allowance: €320 (8%)
13th month: €333.33
Total: €4,653.33
Years of service: 15
Transitievergoeding: €4,653.33 ÷ 12 × 15 = €5,816.67
Example 3: 8.5 Years of Service
Gross monthly salary: €2,500
Holiday allowance: €200
Total: €2,700
Years of service: 8.5
Transitievergoeding: €2,700 ÷ 12 × 8.5 = €1,912.50
Maximum Amount of Transitievergoeding
There is a statutory cap on the severance pay. For 2024, the following applies:
- Maximum: €94,000 gross
- Or one year's salary if that exceeds €94,000
This cap is adjusted annually.
Including Partial Months
A portion of a month is taken into account pro rata. For 5 years and 3 months of service, 5.25 years are counted.
Severance Pay after Long-Term Illness
Upon dismissal after 2 years of incapacity for work, you are entitled to a transitievergoeding. Employers can apply for compensation from the UWV:
- Compensation scheme active since 1 April 2020
- Application via the UWV by the employer
- Reimbursement of the severance pay to the employer
Payment Term
The transitievergoeding must be paid within one month after termination of the contract. In case of delay, the employer owes statutory interest.
Additional Compensation via the Subdistrict Court
If the subdistrict court dissolves the contract, a fair compensation may be awarded in addition to the transitievergoeding in case of seriously culpable conduct by the employer.
Deduction for Training Costs
The employer may deduct specific costs from the severance pay, such as:
- Costs for outplacement or retraining
- Investments in broader employability in the labour market
Prior written consent of the employee is required for this.
Deviating Provisions in Collective Labour Agreement
A collective labour agreement may deviate from the standard transitievergoeding if:
- An equivalent provision is included
- The provision is aimed at preventing or limiting unemployment
Frequently Asked Questions in Leiden
Transitievergoeding in a Settlement Agreement?
This depends on the negotiations. Although there is no statutory entitlement, at least the transitievergoeding is often included in the agreement.
Relevant Authorities in Leiden:
Court: District Court of The Hague, Leiden Location
Legal Aid Office: Juridisch Loket Leiden, Stationsweg 46