Are there social contributions in Netherlands?

Yes, employees in Netherlands pay approximately 27.6% in social contributions, in addition to income tax. This total is split between various funds. For instance, the AOW (general old-age pension) contribution is 17.9%. The Anw (survivor benefits) is 0.1%, and the Wlz (long-term care) is 9.65%. These contributions are capped at an income of €37,989 for 2024. If you earn more than that, you only pay social contributions on the first €37,989. These funds ensure you're covered for healthcare, retirement, and unemployment. For example, the AOW provides a basic state pension, while the Wlz helps with long-term care needs. Your employer also pays a portion of social contributions, which isn't deducted from your gross salary. This system provides a robust social safety net. When considering a move to the Netherlands, factor these contributions into your budget, understanding they fund essential public services you'll benefit from.