Transitievergoeding Calculation - Formula and Practical Examples in Rijswijk
The transitievergoeding is a statutory compensation for employees upon termination of their employment contract. Since 2020, there is a standardized and simple method to calculate it, also for employees in Rijswijk.
When Entitled to Transitievergoeding?
You can claim a transitievergoeding in the following situations:
- Your employer terminates the contract
- The subdistrict court dissolves the employment contract at the employer's request
- A fixed-term contract is not extended by the employer
- You resign yourself due to serious negligence by the employer
- The contract ends after 2 years of illness at the employer's request
When No Entitlement to Transitievergoeding?
- You resign yourself without attributable reason on the part of the employer
- Dismissal due to your own serious faults
- You are under 18 and work on average no more than 12 hours per week
- You have reached AOW retirement age
- Your employer is bankrupt
- There is a comparable arrangement in the collective labour agreement
Calculation Formula
As of 1 January 2020, a uniform calculation method applies:
In simple terms: 1/3 monthly salary per year worked.
What is Included as Salary?
For the calculation, the gross monthly salary counts, including:
- Base salary
- Fixed allowances (e.g., for shift work)
- Holiday allowance (minimum 8%)
- Structural end-of-year payments (such as a 13th month)
- Regular overtime compensation
- Average bonuses over the past 3 years
What is Not Included?
- Expense allowances
- Company cars
- Reimbursements for phone 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 Extra Month
Gross monthly salary: €4,000
Holiday allowance: €320 (8%)
13th month: €333.33 (€4,000 ÷ 12)
Total: €4,653.33
Years of service: 15
Transitievergoeding: €4,653.33 ÷ 12 × 15 = €5,816.67
Example 3: 8 Years and 6 Months Employment
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 Transitievergoeding
There is a statutory cap on the transitievergoeding. For 2024:
- Maximum amount: €94,000 gross
- Or a full annual salary if higher than €94,000
This cap is adjusted annually.
Partial Month Included
A portion of a month is included pro rata. For example, 5 years and 3 months counts as 5.25 years.
Transitievergoeding in Case of Long-Term Illness
Upon dismissal after 2 years of incapacity for work, you are entitled to a transitievergoeding. Employers can reclaim these costs from the UWV:
- Compensation possible since 1 April 2020
- Application by employer to UWV
- Reimbursement of the compensation 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.
Role of the Subdistrict Court in Rijswijk
In dissolution via the subdistrict court, for example in the District Court of The Hague (district for Rijswijk), an additional fair compensation may be awarded in case of seriously culpable conduct by the employer, in addition to the transitievergoeding.
Set-Off Against Training Costs
The employer may deduct certain expenses from the transitievergoeding, such as:
- Costs for outplacement or retraining
- Costs for broader employability in the labour market
This must be agreed in writing with the employee in advance.
Collective Labour Agreement Exceptions
A collective labour agreement may deviate from the standard arrangement if:
- A comparable arrangement is included
- This arrangement helps prevent or shorten unemployment
Frequently Asked Questions in Rijswijk
Transitievergoeding in Settlement Agreement?
This depends on the negotiations. It is not legally required, but often at least the transitievergoeding is included in the agreement.
District Court: District Court of The Hague (district)
Legal Aid Office: Juridisch Loket Rijswijk