Taxes and social security
Every person working in the Netherlands is obliged to pay wage tax. Wage tax is a tax the employer deducts from the employee’s salary and transfers to the Dutch Tax Administration and Customs (Belastingdienst, hereafter Tax Office). Income tax includes wage tax and social premiums. As the employer, the university also withholds pension premiums, which are transferred to the pension fund.
This information applies to persons who are employed with Utrecht University, as well as those who conduct teaching or research activities at the university based on a hospitality agreement.
Wage tax and pension premiums
The university is obliged to deduct wage tax and pension premiums from the salary of all persons employed with Utrecht University. The Tax Office decides whether the 30% scheme or a tax deduction applies to your situation. The provisions mentioned below, with exception of the provision for income tax, do not apply to persons conducting teaching or research activities based on a hospitality agreement.
Social security and social insurance
The Dutch social security system
The Dutch social security system consists of (a) social insurances and (b) social security benefits. Premiums are paid towards the social insurances, while the social security benefits are paid from the government’s general resources. People are only entitled to social security benefits if they are unable to provide for themselves. As these do not entail obligatory insurances and only apply to exceptional situations, these will not be discussed here.
Health Care Insurance Act/Chronic Care Act
In the Netherlands, two statutory obligatory insurances apply to the field of medical health and care: the Health Care Insurance Act (in Dutch Zvw) and the Chronic Care Act (in Dutch WLZ).
Everyone who lives in the Netherlands is obliged to pay municipal taxes. These taxes may be (partially) included in the rent. The municipal (local) taxes that are being imposed are: