Withholdings

What amounts are taken out of your pension?

Various amounts are taken out of your gross pension. You are also liable to pay income-linked contributions under the Dutch Healthcare Insurance Act (Zvw).

Your pension income

We withhold the following:

1. Payroll tax

The payroll tax rates for 2024 are:

Payroll tax till state retirement age (AOW)
 

Payroll tax from state retirement age (AOW) born on or after 1-1-1946
 

Payroll tax from state retirement age (AOW) born before 1-1-1946
 

Payroll tax credit

Everyone in the Netherlands is entitled to a rebate on their payroll tax, called the payroll tax credit. For most retirees who have reached state retirement age, the payroll tax credit is applied to their state pension, which offers the highest amount of the rebate. If you prefer, however, you may also apply the payroll tax credit to your pension income. You should indicate this preference on the form entitled ‘Payroll tax credit’. Note: Do you have multiple incomes, e.g. AOW and a pension from Philips Pensioenfonds? Then make sure you only get the wage tax credit on one income. If you do not, you will pay too little tax. You will have to pay this to the Tax Administration later.

Payroll tax is charged on your entire pension, and the tax credit is deducted from that amount. The difference is the payroll tax that you must pay.

1 januari 2024

*Incomes up to €24,839 (1st tax bracket) apply the maximum general payroll tax credit; above that threshold, the tax credit is income-linked.

2. Income-linked contributions under the Dutch Healthcare Insurance Act 

Contributions under the Dutch Healthcare Insurance Act (Zvw) are also taken out of your pension income. For 2024, those contributions are 5.32% of your pension income; your income is capped at €71,628 for these purposes. If you have any questions about the statutory healthcare insurance contributions, visit the Dutch Tax and Customs Administration (www.belastingdienst.nl). 

3. Premium ANW-shortfall insurance

Have you taken out ANW-shortfall insurance with us? Then you pay a premium for this. How much premium you pay depends on your age and the insured amount. The Anw-shortfall insurance continues until you reach your state pension age. If your partner is younger at that time, we will offer you the option of continuing the insurance at an individual premium until your partner reaches the state pension age.

4. Dutch cancer society donation

In 2023 we transferred almost € 100,031.53  to the Dutch Cancer Society. We do the same every year, raising money through donations from retired members of Philips Pensioenfonds. You can also donate, even if it is a small amount: you can donate €0.25, €0.50 or €1.00 per month, or whatever other amount you choose. Visit the website of the Dutch Cancer Society (information in Dutch) to find out more about what it does.

5. Associations of retired Philips employees

If you decide to join one of the associations for retired Philips employees, you can ask for your membership dues to be withheld from your pension. You should indicate this preference when you join the association. Check the website of Federatie van Philips Verenigingen van Gepensioneerden (or FPVG, the federation of associations of Philips retirees) for a list of the various associations and their contact details.