The transition payment 2026 is the most important financial safety net for many employees upon dismissal. Yet it is often unclear when you are entitled to it, how the payment is calculated, what counts as salary, and what exceptions apply. In practice, we also see that employers regularly make mistakes in the calculation or payment. This can cost you a lot of money.
In this comprehensive guide, we explain in plain language how the transition payment in 2026 works. You will read when you are entitled to a transition payment, how the calculation works, what you can do with a settlement agreement (VSO), and when it is wise to seek legal assistance.
Would you like immediate advice about your dismissal situation? Then visit our page on employment law or our approach to dismissal cases.
What is a transition payment?
The transition payment is a statutory dismissal compensation. It is not a "bonus," but a right that follows from the law. The payment is intended to:
- soften the financial blow of dismissal (income bridging);
- make the transition to other work easier (for example through training);
- encourage employers to handle dismissal carefully.
When are you entitled to a transition payment in 2026?
In most cases, you are entitled to a transition payment when the initiative to terminate comes from your employer. Think of:
- Dismissal by the employer (termination after UWV permission or with the employee's consent);
- Dissolution by the subdistrict court (for example in the case of a disrupted employment relationship or underperformance);
- Non-renewal of a temporary contract (if the employer chooses not to renew).
Entitled from the first working day
Important: the transition payment 2026 applies from the first working day. You can therefore also be entitled to a transition payment upon dismissal during the probationary period or after a very short employment. The amount may be small, but the right does exist.
When are you not entitled to a transition payment?
There are exceptions. The most important situations in which there is (usually) no entitlement to a transition payment:
1) Summary dismissal
In the case of a valid summary dismissal, there is in principle no entitlement to a transition payment. Please note: if the summary dismissal later turns out to be unjustified (for example because there was no urgent reason or the employer acted too late), the outcome may be different. Also read: summary dismissal.
2) Seriously culpable conduct
In the case of seriously culpable conduct by the employee, the right to a transition payment may lapse. This is a high threshold. A normal mistake, a conflict, or "not performing well" is not automatically seriously culpable.
3) State pension age reached
If the employment contract ends because you have reached the state pension age (AOW), there is in principle no entitlement to a transition payment.
4) Employer bankruptcy
In the case of bankruptcy, the right to a transition payment lapses in many cases. This is harsh, but it is how the regulation generally works out.
How is the transition payment 2026 calculated?
The calculation of the transition payment in 2026 revolves around two points:
- your gross monthly salary (including certain fixed salary components);
- the duration of your employment.
The main rule is:
- For each full year of service: 1/3 gross monthly salary
- For a partial year of service: a proportional amount
Practical calculation example
Suppose: you earn €3,000 gross per month and you have been employed for 6 years and 4 months.
- 6 full years: 6 × (1/3 × €3,000) = 6 × €1,000 = €6,000
- + a portion for 4 months (proportional) = additional amount
In many cases, the "difference" lies precisely in the question: what exactly is the gross monthly salary that counts? That is where things most often go wrong.
What counts as gross monthly salary?
For the transition payment 2026, usually more counts than just your base salary. Depending on your situation, the following may be included:
- Base salary (fixed pay);
- Holiday allowance (usually 8%);
- Fixed allowances (for example shift allowance);
- Structural overtime (if it is truly a fixed pattern);
- Bonuses/commissions (often averaged over a reference period);
- Fixed year-end bonus (pro rata).
What usually does not count are pure expense allowances (such as travel expenses) and incidental payments without a structural character.
Maximum transition payment 2026
The transition payment has a statutory maximum that is determined annually. If your gross annual salary is higher than the statutory maximum, the following often applies as maximum: one gross annual salary.
The government publishes the (annually adjusted) current maximums at: Government – transition payment.
Transition payment during illness: does anything change?
Many people think that illness affects the transition payment. In most situations, the following applies: illness does not reduce your transition payment. The calculation is based on the salary you earned before the illness. Even upon dismissal after long-term illness, the transition payment 2026 can therefore still be owed.
Read more about dismissal and illness: dismissal during illness.
Transition payment 2026 and settlement agreement (VSO)
In the case of dismissal by mutual consent, you often conclude a settlement agreement (VSO). Important: in a VSO, the employer is not "automatically" obliged to pay exactly the statutory transition payment. In practice, the transition payment often serves as the starting point (and minimum) for negotiations.
When is a higher compensation often achievable?
A higher compensation than the statutory transition payment is regularly negotiable, for example if:
- the employer wants to end the employment quickly and wants to avoid proceedings;
- the employer's file is weak (for example insufficient improvement plan in case of underperformance);
- you "give up" a longer notice period/continued salary payment in exchange for more money;
- there is a dispute about culpability or reintegration.
Also read: settlement agreement.
May an employer deduct costs from the transition payment?
Sometimes an employer tries to offset costs (such as training or outplacement) against the transition payment. This is only possible under strict conditions, for example if:
- the costs were clearly discussed in advance;
- the purpose is to increase employability (within or outside the company);
- the agreements have been carefully documented.
In practice, this often goes wrong. Therefore, always have this checked before you agree.
When must the transition payment be paid?
The transition payment should generally be paid within a short time after the end of employment. If payment is made too late, this can have consequences (such as interest or other claims). Do not wait too long if you notice that payment is not forthcoming.
For general information about payroll tax and payment, you can visit: Tax Authority.
Common mistakes with transition payment 2026
In our practice, we see these mistakes most frequently:
- incorrectly determining the gross monthly salary (allowances/bonus not included);
- incorrect length of service (e.g. successive employership not counted);
- wrongly claiming that there is no entitlement with short-term contracts;
- unjustified deduction of costs;
- late payment or payment "under protest" without clear justification.
Checklist: what to do immediately after dismissal
- Ask in writing: what is the reason for the dismissal and which route is the employer choosing?
- Check whether you receive a VSO and never sign immediately.
- Collect payslips and contracts (for correct calculation of the transition payment).
- Have the transition payment 2026 calculated (especially with variable pay).
- Check whether negotiations are possible (higher compensation, garden leave, reference, bonus agreements).
Frequently asked questions about transition payment 2026
Am I entitled to a transition payment with a temporary contract?
Often yes, if the employer decides not to renew. The transition payment 2026 can also apply to temporary contracts.
Am I entitled to a transition payment if I resign?
Usually not, because the initiative lies with you. There are exceptions, but these depend on the situation.
What if my employer says I am "seriously culpable"?
That is often said too easily. The bar is high. Always have this legally reviewed, especially if the employer does not want to pay a transition payment as a result.
Is the transition payment net or gross?
The transition payment is in principle a gross amount. Payroll tax is withheld. This means you receive less net.
Can I get more than the statutory transition payment?
Yes, especially with a VSO, negotiation is often possible. The statutory transition payment is then usually the starting point.
What if the transition payment is paid too late?
Then you may be able to claim interest or take other steps. Have this assessed in a timely manner.
Need help with transition payment 2026?
Are you unsure about the amount of your compensation, are you being told that you are not entitled, or is there a VSO ready to be signed? Always have your situation checked. A small error in salary components or length of service can quickly make a difference of hundreds or thousands of euros.
The employment law attorneys at Arslan Advocaten are happy to help you check, enforce, or improve your transition payment 2026. See our approach: Employment Law – Arslan Advocaten or contact us via the contact form on our website.
For more general information about employee rights upon dismissal, you can also visit: UWV.