Updated Unemployment Benefits in the Netherlands for 2027

What will change?

The Dutch government recently confirmed its plan to shorten the maximum duration of unemployment benefits (WW) from 24 months to 18 months by 2027. This move has sparked significant discussion regarding the impact on workers, especially those who are older or in vulnerable situations.

Implications for employers and employees

A unique challenge in the Dutch system is that employers are legally required to continue paying employees’ salaries for up to two years at 70% during sick leave, one of the longest obligations in Europe. While this sick leave rule is separate from unemployment benefits (WW), it creates a significant financial risk for employers. If a newly hired employee becomes ill, the employer must cover their salary for an extended period, regardless of company size or revenue. This potential cost can discourage employers from taking on new staff, particularly older workers, who may statistically be more prone to long-term illness. As a result, employers may become more selective or hesitant in their hiring decisions, contributing to longer periods of unemployment for vulnerable groups, just as their WW benefits are being reduced.

The implication for the employee is therefore that the shortened unemployment benefits (WW) places them in a more vulnerable position. The shorter duration means less time for the unemployed individual to find a new job while still receiving financial support. At the same time, employers’ are reluctant to hire, particularly when it comes to older work seekers. This creates the double disadvantage for employees, where they have less time and support to secure new employment while also facing reduced job opportunities, as employers are cautious in hiring because of the sick leave payment.

How Unemployment Benefits Compare Across Europe

To better understand the implications of the Dutch government’s plan to shorten unemployment benefits, it’s useful to compare the systems in other European countries where Parakar operates. Each nation has its own approach to unemployment benefits, with varying durations and conditions based on factors like age, work history, and regional circumstances. Here’s a look at how unemployment benefits are structured across several European countries, and how they might influence both employers and employees.

1. France: 36-Month Benefits for Older Workers In France, individuals aged 55 and above can receive unemployment benefits for up to 36 months, depending on their previous work history. This extended safety net supports older job seekers who may face challenges re-entering the labor market.
2. Germany: Up to 24 Months of Benefits Germany provides up to 24 months of unemployment benefits for those over 58, depending on how long they’ve worked. The standard duration for others is typically 12 months, or 6 months for those with shorter contribution periods.
3. Belgium: No Fixed Maximum Duration Belgium stands out by offering unlimited duration of unemployment benefits. Although the amount decreases over time, support continues as long as the individual remains unemployed and actively seeks work.
4. United Kingdom: Up to 6 Months (Means-Tested After) In the UK, unemployment support begins with Jobseeker’s Allowance (JSA) or Universal Credit. Contributions-based JSA lasts for up to 6 months, after which only means-tested support continues. The amount is relatively modest, and the system places strong emphasis on returning to work quickly.
5. Ireland: Up to 9 Months Ireland offers Jobseeker’s Benefit for up to 9 months (234 days), depending on an individual’s contributions. After that, workers may apply for a means-tested Jobseeker’s Allowance, with stricter conditions.
6. Portugal: Up to 18 Months (or More for Older Workers) In Portugal, unemployment benefit duration varies based on age and work history. For most, it lasts up to 540 days (~18 months), while those over 50 with long careers may receive it for up to 540–540+ days depending on specific criteria.
7. Spain: Up to 24 Months Spain’s unemployment benefit system allows for up to 24 months of support for those who have worked for six years or more. The benefit amount gradually decreases over time, but the duration remains relatively generous compared to the Netherlands’ future 18-month limit.
8. Italy: Up to 24 Months Italy offers NASpI (Nuova Assicurazione Sociale per l’Impiego), which provides unemployment benefits for up to 24 months, depending on the duration of previous employment. The benefit starts high and reduces over time.
9. Poland: 6 to 12 Months Poland offers unemployment benefits for 6 months, but in regions with high unemployment, this may extend to 12 months. The support is modest and based on prior contributions and wage levels.

Sick leave in other countries

While the differences in unemployment benefits between the Netherlands and other European countries may not be as significant, the key distinction lies in the Dutch system’s two-year sick leave obligation. In contrast, other European countries tend to have lighter obligations for employers when it comes to sick leave:

• In Germany, employers pay full salary for only 6 weeks, after which public insurance takes over.
• In France, the state starts paying sick leave after just 3 days.
• In Belgium, employer responsibility usually ends after 30 days.
• In the UK, Statutory Sick Pay lasts up to 28 weeks and is significantly lower.
• In Portugal, Poland, and Ireland, employers typically only pay for the first few days (or none at all), with the state covering the rest.

Compared to countries where sick leave is limited to just a few days or weeks, the two-year salary continuation requirement in the Netherlands places a much heavier financial burden on employers. This added responsibility makes the hiring climate in the Netherlands more challenging for businesses, particularly when compared to countries with lighter sick leave obligations, ultimately making hiring conditions more favorable elsewhere.

How Parakar Supports You

At Parakar, our in-country HR experts understand the complexities of the hiring landscape in the Netherlands. We provide expert advice and tailored services to help you stay compliant, reduce risk, and effectively manage your international workforce. In a competitive market, retaining talent starts with knowing how to find it. Parakar brings deep expertise in the Dutch employment laws, labor market, and social security systems.

Curious about how these changes could affect your business and how we can help? Get in touch with us today to learn how Parakar can support your global employment strategy.