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How is the contribution calculated?

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If you are compulsorily covered by social insurance schemes in the Netherlands, you must pay national insurance contributions as well. The national insurance contributions owed are calculated on the contribution base. The contribution base has a maximum. If you are not liable to pay national insurance contributions for the whole year in the Netherlands, the maximum contribution base is only calculated over the period that you were liable to pay national insurance contributions here. The amount owed is then decreased by the national insurance component of the tax credit and is collected along with any income tax owed in 1 amount.

Contribution base

The contribution base is (usually) equal to the taxable income in box 1, calculated according to the regulations that apply to a resident of the Netherlands. This means that in the calculation of the contribution base, not only your income in box 1 in or from the Netherlands is taken into account but also any positive or negative income from work and home in another country. It therefor concerns your worldwide income in box 1. Furthermore, your personal allowance is taken into account.

Example

You are 34 years old, not married and you were employed in the Netherlands in 2012. Your income from employment amounted to € 18,151. From your ex-spouse in your country of residence, you received € 4,538 in maintenance. In addition to this, you received income from employment in your country of residence amounting to € 2,269. You have an owner-occupied home. The notional rental value amounts to € 908. You have paid € 3,360 in interest and costs on loans for this home.

The contribution base amounts to:

Income from employment

€ 18,151

Income from employment in country of residence

€   2,269

Maintenance

€   4,538

Notional rental value

€      908

Subtotal

€ 25,866

Minus: interest and expenses for the owner-occupied home

- € 3,360

Contribution base

€ 22,506

In 2010, (prior to deduction of tax credit) you owe on this contribution base:

Contribution under the General Old Age
Pensions Act

17.90% of € 22,506 =

€ 4,028
Contribution under the Surviving
Dependants Act

1.10% of € 22,506 =

€    247
Contribution under the Exceptional
Medical Expenses Act

12.15% of €22,506 =

€ 2,734

Please note!

Are you 65 years of age or older? If so, other calculation rules apply for the calculation of the different components of the tax credit. This is because in 2012 you are no longer liable for the payment of the AOW premium from the month in which you turn 65. Were you born before 1 January 1946? In that case you are not liable for the payment of the AOW contribution, but your maximum contribution base will be higher.

 

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