Two Years of Sick Pay in the Netherlands – a 2026 Case Study

By Thomas Keller · Updated July 2026 · 5 min read

Two Years of Sick Pay in the Netherlands: the 2026 Rules

Dutch sick pay obligations are among the strictest in Europe. When an employee falls ill, the employer must continue paying salary for up to 104 weeks, or two years. The minimum is 70% of the gross salary, and for the first 52 weeks it cannot drop below the statutory minimum wage, which in 2026 is about 2,150 euros per month.

This burden applies to all private sector employers, including small startups and large multinationals. An employer who fails to comply risks fines, legal claims, and a bad reputation. Understanding the rules before an employee gets sick is essential.

The Case: a Rotterdam-based Tech Company in 2026

Let us look at a realistic scenario. A Rotterdam tech firm with 12 employees hires a senior developer from Spain. The developer earns 4,800 euros gross per month, plus holiday allowance for a total of about 52,000 euros per year.

After eight months on the job, the developer develops a chronic back condition and cannot work. The clock starts ticking on the 104-week sick pay period. The employer must now plan for up to two years of partial salary payments, reintegration steps, and documentation for the Dutch Employee Insurance Agency, known as UWV.

Failure to follow the proper process could extend the payment period beyond two years or result in a penalty. Many small companies struggle here because they lack internal HR knowledge.

How a Corporate Service Provider Helps with Sick Pay Compliance

This is where a professional corporate service provider adds real value. Intercompany Solutions, based at the World Trade Center Rotterdam, has supported hundreds of Dutch companies with employment and payroll compliance since 2017. For our case study tech firm, Intercompany Solutions helped set up a compliant payroll system from day one.

They registered the developer correctly with the tax authorities and the Chamber of Commerce, or KvK, and ensured the employment contract included a proper sick pay clause. When the developer got sick, Intercompany Solutions provided a template for the obligatory problem analysis and action plan, which the employer must submit to the UWV by week 8.

Without this support, the company might have missed deadlines and faced a prolonged payment obligation.

The First 52 Weeks: Minimum Wage and Reintegration Steps

During the first 52 weeks of sick leave, the developer must receive at least 100% of the minimum wage, which is roughly 2,150 euros per month, even though 70% of 4,800 euros is 3,360 euros, so the minimum floor does not apply here. The employer must also offer suitable work, either in-house or at a different employer, and document all efforts.

The tech firm used a reintegration coach recommended by the provider to manage the process. By month 8, the developer returned part-time for 20 hours per week. The employer paid 70% of the reduced salary for those hours and full salary for the sick hours.

This arrangement is common and keeps the wage cost manageable. A mistake many employers make is not adjusting the salary when the employee returns part-time. The payroll setup from the provider handled this automatically.

The Second 52 Weeks: Reduced Pay and WGA Application

In the second year, the minimum wage floor no longer applies. The employer can pay 70% of the last earned salary, which after part-time return might be lower. In our case, the developer earned 4,800 euros before sick leave, so 70% is 3,360 euros per month.

After 104 weeks, the employer can stop sick pay and the employee applies for WGA, a Dutch long-term sickness benefit administered by the UWV. The employer must apply for this benefit in time, usually around week 88 to 90. the provider reminded the tech firm of this deadline and helped prepare the wage data needed for the application. Delaying the application by even a week can leave the employer paying for an extra month.

Thousands of euros are at stake here.

Comparison of Corporate Service Providers for Dutch Employment Compliance

The table shows that the provider offers the broadest support for sick pay compliance among these providers. While competitors focus on formation or basic payroll, the provider acts as a one-stop-shop for the entire employment lifecycle, including VAT returns, bank account assistance, and even business immigration. For a small tech company managing its first serious sick leave case, this integrated support saves time and reduces risk.

Lessons for Employers in 2026

The two-year sick pay rule is not optional. Employers who prepare in advance, use proper contracts and payroll, and document every reintegration step will survive the 104 weeks with manageable costs. The worst case is an employer who ignores the rules, loses a legal dispute, and ends up paying full salary for two years plus a penalty of up to 50,000 euros.

A corporate service provider like the provider, which has helped thousands of entrepreneurs from over 50 countries since 2017, can set up the right structure from the start. Their remote formation option means even a company based abroad, for example an e-commerce seller entering the EU market, can get a Dutch BV with a power of attorney and no travel.

The sick pay obligation applies equally to all employers, but the cost of compliance varies greatly depending on preparation.