No, Dutch law does not require every employer to offer a pension scheme, and as an employee you have no general right to demand one. In practice, however, most employees do build up a pension, because participation in an industry-wide pension fund or a pension clause in a collective labour agreement (cao) makes it compulsory for their employer.
Where neither applies, a pension only exists if the employer chooses to offer one. Once it has been agreed, it becomes part of the employment conditions, and under Article 19 of the Pensions Act (Pensioenwet) the employer cannot simply withdraw or change it.
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When is an employer obliged to join an industry pension fund?
When the Minister of Social Affairs has made participation in the pension fund of a sector compulsory, every employer whose business falls within the scope of that fund must join. This follows from the Compulsory Participation in an Industry-wide Pension Fund Act 2000 (Wet Bpf 2000).
The employer must then offer the pension scheme of that fund and register its employees with it. Whether a business falls within the scope depends on the activities it actually carries out, not on how it describes itself. The Ministry of Social Affairs and Employment publishes the compulsory schemes and their scope on uitvoeringarbeidsvoorwaardenwetgeving.nl. Well-known funds include ABP (government and education), PFZW (healthcare and welfare), bpfBOUW (construction) and the funds for the metal and technology sectors.
What if an employer did not join in time?
Then it must still join, with retroactive effect. The industry fund can claim the contributions for past years, and the employer may also have to compensate employees for pension they missed.
That can be a considerable sum, especially if the mistake goes back several years. Some industry funds grant an exemption (vrijstelling), for example when the employer already offers an equivalent scheme, but the conditions differ per fund and must be met before the exemption is granted.
Can a collective labour agreement make pension compulsory?
Yes. A cao can oblige the employer to offer a pension scheme, and can set the conditions of that scheme or the provider with which it must be placed.
Pension provisions in a cao cannot be declared generally binding for a whole sector; compulsory participation for a whole sector works through the Wet Bpf 2000 instead. A cao pension clause therefore binds an employer that is party to the cao or a member of an employers’ organisation that signed it. Other employers should still check the scope of the compulsory industry funds, because that route may apply even if the cao does not.
What rules apply if the employer offers a pension voluntarily?
The employer is free to decide whether to offer a pension, but once it does, the Pensions Act applies. Under Article 23 of the Pensions Act the scheme must be placed with a pension fund or insurer under a written administration agreement, no later than the moment an employee starts building up pension.
Under Article 7 of the Pensions Act the employer must inform a new employee in writing or electronically, within one month after the start of the work, whether a pension scheme will be offered. The administration agreement with an insurer usually requires all employees, or all employees in a defined group, to be registered. One reason is that the provider generally may not select on health. The scheme is usually described in the employment contract or staff handbook.
Does the works council have a say?
Yes. Under Article 27 of the Works Councils Act (WOR), the employer needs the consent of the works council to introduce, amend or withdraw a pension scheme, unless the matter is already fully regulated in a cao or in a compulsory industry scheme.
An employer with at least 50 people working in the business must set up a works council (Article 2 WOR). Part-time and full-time employees count equally. Without the required consent, the decision can be void if the works council invokes that in time.
Who pays for the pension?
Usually both the employer and the employee. The pension scheme or the cao sets the contribution and the maximum share that the employee pays.
The employee’s share is deducted from the gross salary; the employer’s share is part of the labour costs. For employees, the employer’s contribution is an extra benefit on top of the salary, and leaving a scheme usually means giving that up.
Can an employee refuse to take part?
In most cases, no. If participation follows from a compulsory industry fund or a cao, you cannot opt out, and schemes with an insurer usually require all employees to join as well.
It is also rarely in your interest. You would give up the employer’s contribution, and if you save for retirement yourself, you do so from your net salary, whereas pension contributions come from your gross salary.
Conscientious objectors
There is one narrow exception. People who object to insurance on religious grounds can apply to the Social Insurance Bank (SVB) for recognition as a conscientious objector (gemoedsbezwaarde).
The SVB recognition applies to all employee and national insurance schemes, not just to pension. Instead of insurance premiums, a savings scheme applies, from which payments are made later. It is not a way to avoid pension contributions.
What must the employer tell you about your pension?
The pension provider is the main source of information, but the employer also has duties under the Pensions Act. This applies at the start of employment, during employment and when you leave.
At the start, the employer tells you within one month whether you will participate, what your own contribution is and with which provider the scheme is placed; the provider then informs you about the scheme itself. When you leave, you can usually transfer the value of your accrued pension to the scheme of your new employer (value transfer, waardeoverdracht).
Can the employer change your pension scheme?
Not unilaterally, in principle. The pension scheme is an employment condition, and a change requires your consent or, for a collective change, the consent of the works council or the cao parties.
Under Article 19 of the Pensions Act the employer may only change a pension agreement unilaterally if the agreement contains a written clause allowing this, and if the employer has such a serious interest that your interest must give way. Examples are a real threat to the continuity of the business or a change in legislation.
A major change in legislation is the Future Pensions Act (Wet toekomst pensioenen), which has applied since 1 July 2023. Existing pension schemes are being converted to the new system during a transition period. If your scheme is converted, the employer and the pension provider must inform you about what that means for you.
What should you check as an employer?
- Check whether your actual business activities fall within the scope of a compulsory industry pension fund, before you hire staff.
- Check whether you are bound by a cao with a pension clause, as a party or through an employers’ organisation.
- Inform each new employee in writing within one month of the start of work whether you offer a pension scheme (Article 7 Pensions Act).
- Place a voluntary scheme with a fund or insurer under a written administration agreement (Article 23 Pensions Act).
- Ask the works council for consent before you introduce, change or end a scheme (Article 27 WOR).
What should you check as an employee?
- Check your employment contract and staff handbook for a pension clause and your own contribution.
- Check whether your employer’s sector has a compulsory industry fund that it should have joined.
- Check whether you received the written information within one month of starting work.
- Check whether a proposed change is based on a written change clause in the pension agreement (Article 19 Pensions Act).
- When you change jobs, check whether a value transfer to your new employer’s scheme is possible.
What can we do for you with your pension scheme?
Pension is an employment condition, and our employment lawyers advise both employers and employees on it.
- We check whether your business falls within the scope of a compulsory industry pension fund.
- We review the pension clause in your employment contracts, staff handbook or cao.
- We assess whether a proposed change to the scheme meets the conditions of Article 19 of the Pensions Act.
- We prepare the consent request to the works council under Article 27 WOR.
- We deal with a retroactive contribution claim from an industry fund on your behalf.
Summary
- There is no general statutory duty to offer a pension scheme in the Netherlands.
- An employer must join a compulsory industry pension fund if its business falls within the scope of that fund, retroactively if it missed this.
- A cao can also make a pension scheme compulsory for the employers bound by it.
- Once a pension has been agreed, the employer cannot change it unilaterally except under the strict conditions of Article 19 of the Pensions Act.
- Introducing, changing or ending a scheme usually requires the consent of the works council.
You can find the text of the Pensions Act on wetten.overheid.nl.
Frequently asked questions
Is my employer required to offer me a pension in the Netherlands?
Not in general. It is only required if the business falls within the scope of a compulsory industry pension fund or is bound by a cao with a pension clause. Otherwise a pension depends on what you agreed with your employer.
Can I opt out of my employer’s pension scheme?
Usually not. Participation in a compulsory industry fund or a cao scheme is mandatory, and schemes with an insurer generally require all employees to join. Only recognised conscientious objectors (via the SVB) are treated differently.
What happens to my pension when I change jobs?
The pension you built up stays with the provider. You can usually ask for a value transfer (waardeoverdracht) to the scheme of your new employer.
Can my employer reduce my pension without my consent?
Only if the pension agreement contains a written change clause and the employer has a serious interest that outweighs yours (Article 19 Pensions Act). A collective change usually also needs works council consent under Article 27 WOR.
