premieheffing

Premieheffing is the Dutch term for the levy on mandatory insurance premiums used to finance social security and health-related programs. It is administered primarily through the Dutch tax and customs administration (Belastingdienst) and forms part of the broader wage tax system.

In practice, premiums for national insurances (volksverzekeringen) are collected via the payroll process. Employers withhold the applicable premiums from employees’ wages and remit them to the Belastingdienst. The rates and bases are set annually by the government. Self-employed individuals may pay premiums directly through periodic contributions. Some health insurance premiums (for the Zorgverzekeringswet) are charged by insurers, with collection arrangements that can vary, but payroll withholding remains common for employees.

The main components funded by premieheffing typically include old-age and survivors insurance (AOW), long-term care (WLZ), disability (WIA), and other social security schemes, as well as the health insurance system. The term reflects the tax-like character of these contributions; although they resemble taxes, they are framed as premiums to fund specific social protections and are collected alongside income tax and other payroll taxes.

Rates and applicability can change from year to year, and there are various exemptions, allowances, and special rules for different groups, such as part-year residents or cross-border workers. Compliance rests on employers, insurers, and self-employed individuals adhering to the applicable schedules and payment deadlines.

See also: loonbelasting, premies volksverzekeringen, zorgverzekeringswet, social security.