Is a pension scheme mandatory in the Netherlands?

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 the employer cannot simply withdraw or change it.

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 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. In some sectors an exemption (vrijstelling) is possible, 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. If you are starting or acquiring a business, check the scope of the relevant funds before you hire staff.

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. For other employers, check whether they fall within the scope of a compulsory industry fund, 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 (Pensioenwet) applies. The scheme must be placed with a pension fund or insurer, and the employer has information duties.

Under Article 21 of the Pensions Act the employer must inform a new employee in writing, within one month after the start of employment, whether a pension scheme will be offered. If the employer already has a pension scheme with a pension insurer or a company pension fund, the administration agreement 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: it wants to avoid a situation in which only employees in poorer health join. In practice, the pension 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 the tax treatment of pension contributions for your business, consult a tax adviser. For employees, the key point is that the employer’s contribution is an extra benefit on top of the salary. 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 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. This is a far-reaching choice with consequences for other schemes, and 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 a duty to inform. This applies at the start of employment, during employment and when you leave.

At the start the employer tells you whether you will participate in a pension scheme, what your own contribution is and with which provider the scheme is placed. During employment you may be informed about options for building up an additional pension. When you leave, you should know that you can usually transfer the value of your accrued pension to the scheme of your new employer (value transfer, waardeoverdracht). The pension fund or insurer can help the employer meet these duties.

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 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. The employer must inform you of the proposed change in advance.

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.

In 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.

At Law & More we advise employers and employees on employment conditions, including pension agreements, the involvement of the works council and changes to schemes. You can find the text of the Pensions Act on wetten.overheid.nl.

Unsure where you stand? Tell us about your situation. We will let you know your options within one working day.

How Law & More can help you with this is explained on our employment lawyer page.