loonheffingen

Loonheffingen are the payroll taxes withheld from employees’ wages in the Netherlands. They represent the amount that employers withhold from gross salary and remit to the government on behalf of the employee. The term typically encompasses three components: loonbelasting (income tax), premies volksverzekeringen (premiums for national insurances such as AOW, Anw and Wlz), and premies werknemersverzekeringen (premiums for employee insurances such as WW and WIA). The combined total is what appears as payroll withholding on a payslip.

The withholding is done at source by the employer and paid monthly to the Belastingdienst, the Dutch tax and customs administration. The exact amount depends on the employee’s earnings, applicable tax credits (heffingskortingen) such as the algemene heffingskorting (general tax credit) and arbeidskorting (labour tax credit), and other allowances. These credits can reduce the withheld amount and may lead to a tax refund or additional payment after the annual tax assessment.

Loonheffingen differ from other deductions shown on a payslip, such as pension contributions to a company or sector pension fund, which are not part of loonheffing. They are a mechanism to fund national taxation and social security programs through payroll at the point of payment.

Administration and compliance are handled by the Belastingdienst. Employers are responsible for calculating and withholding loonheffingen, reporting wages, and remitting the amounts to the tax authority in accordance with Dutch law.