Sick Pay in the Netherlands — Continued Payment During Illness

If you become ill and are unable to work, your employer is legally obliged to continue paying your salary for up to two years. This right to continued payment during illness (loondoorbetaling bij ziekte) is one of the most important employee protections in Dutch labour law. In this article, you will learn exactly how much you are entitled to receive, what counts as salary for the purposes of sick pay, when your employer can reduce, suspend or stop payment, and what happens to your income if your employment ends while you are still ill.

Legal basis: Article 7:629 BW

The right to continued payment during illness is laid down in Article 7:629 of the Dutch Civil Code (Burgerlijk Wetboek, or BW). This article establishes the core obligation: if you are unable to perform your work due to illness, pregnancy or organ donation, your employer must continue paying your salary for a maximum of 104 weeks (two years). This obligation applies from the first day of illness and runs parallel to the dismissal ban during illness under Article 7:670 BW. In certain situations, such as for employees with a no-risk policy (no-riskpolis) or temporary agency workers in specific phases, the payment obligation may rest (partly) with the UWV rather than the employer.

Key provisions of Article 7:629 BW include:

• Paragraph 1: the employer must pay at least 70% of the agreed salary during the period of incapacity, up to the maximum daily wage (maximumdagloon), which is adjusted annually. In the first 52 weeks, the payment may not fall below the statutory minimum wage.
• Paragraph 3: specifies the situations in which the employer is not obliged to continue payment (for example, if the illness was caused intentionally by the employee, or if the employee obstructs their recovery).
• Paragraph 6: allows the employer to suspend payment if the employee does not comply with reasonable control measures or does not attend company doctor appointments.
• Paragraph 9: permits a derogation from the 70% minimum in a collective labour agreement (CAO) or individual employment contract, but only upward. The 70% minimum cannot be reduced by contract.

The two-year obligation makes Dutch sick pay among the most generous in Europe. In many other countries, employees receive sick pay from a social insurance fund after a short employer-paid period. In the Netherlands, the financial burden rests almost entirely on the employer, which is one reason why the reintegration obligations under the Gatekeeper Improvement Act are so extensive: the employer has a strong financial incentive to support your return to work.

How much sick pay are you entitled to?

The amount of sick pay you receive depends on several factors: the statutory minimum (70% of your salary), any provisions in your collective labour agreement (CAO) or employment contract, and the year of your illness. Here is a breakdown:

However, the statutory 70% is a minimum. Many employers pay more, either because of provisions in the applicable collective labour agreement or because of individual employment contract terms. Common arrangements include:

• 100% in the first year, 70% in the second year: this is the most common arrangement in collective labour agreements. Many CAOs require full salary continuation in the first year of illness.
• 100% in the first 6 months, then gradually decreasing: some CAOs use a sliding scale, with the percentage decreasing over time.
• Higher percentages for partial return to work: if you partially return to work during your illness, you receive your full salary for the hours worked and sick pay for the remaining hours.

It is essential that you check your employment contract and the applicable CAO to determine what you are entitled to. The statutory 70% is only the floor; your actual entitlement may be significantly higher.

What counts as salary for sick pay

The sick pay obligation covers more than just your base salary. Article 7:629 BW refers to the "agreed salary" (overeengekomen loon), which includes several components:

• Base salary: your gross monthly salary as stated in your employment contract.
• Holiday allowance (vakantiegeld): in principle, the statutory 8% holiday allowance (or higher if agreed) continues to accrue during illness over the sick pay amount. However, the precise treatment may depend on your CAO or employment contract, as some agreements contain different arrangements.
• Fixed allowances: regular, fixed allowances that are part of your salary (such as a fixed shift allowance) are generally included in the sick pay calculation.
• Overtime pay: only included if the overtime is sufficiently structural and fixed to be considered a salary component. Incidental overtime is generally not included in the sick pay calculation.
• Variable components: whether variable pay (bonuses, commissions) is included in sick pay depends on the specific circumstances and the applicable CAO. Case law shows that the regularity and predictability of the component are determining factors.
• 13th month / year-end bonus: if your contract or CAO guarantees a 13th month or year-end bonus, this component generally continues during illness, although some CAOs exclude it from sick pay after a certain period.

Components that are typically not included in sick pay are expense allowances (since you are not incurring work-related expenses during illness), the employer's pension contributions, and incidental benefits that are not guaranteed.

Sick pay in the first year

During the first 52 weeks of your illness, you are entitled to at least 70% of your salary, with an important additional safeguard: the payment cannot fall below the statutory minimum wage. This means that even if 70% of your salary would be less than the minimum wage, your employer must top up the payment to at least the minimum wage level.

In practice, most employees receive more than the statutory minimum during the first year. A large majority of collective labour agreements require 100% salary continuation in the first year of illness. If your CAO contains such a provision, your employer must comply with it, and you should receive your full salary during the first year.

The first year of illness is also the period during which the most intensive reintegration efforts take place. Your employer must follow the Gatekeeper Improvement Act procedures, including arranging a problem analysis by the company doctor, creating a plan of action, and exploring options for adapted or alternative work.

Sick pay in the second year

During the second year of illness (weeks 53 to 104), the statutory minimum remains 70% of your salary. However, the minimum wage guarantee no longer applies. This means that if 70% of your salary is below the minimum wage, your employer is only obliged to pay 70% — even though this is less than the minimum wage.

This can have significant financial consequences, especially for employees with lower salaries. For example, if your gross monthly salary is €2,200 and the minimum wage is €2,070 (approximate 2026 figure), 70% of your salary would be €1,540 — well below the minimum wage. In the second year, your employer is only required to pay the €1,540.

Many collective labour agreements also provide for reduced payments in the second year. While 100% is common in the first year, the most common second-year arrangement is 70%, though some CAOs provide 75% or 80%. Some agreements also include conditions: for example, a higher percentage may apply if you actively participate in reintegration activities.

In the second year, the employer and employee should also be preparing for the end of the two-year period. This includes creating the reintegration report, filing the WIA application with the UWV (by week 91 at the latest), and discussing the next steps if reintegration within the organisation is not possible.

Waiting days (wachtdagen)

Dutch law allows employers to implement up to two waiting days (wachtdagen) at the start of a period of illness (Article 7:629 paragraph 9 BW). During these waiting days, the employer is not required to pay sick pay. Waiting days must be specified in the employment contract or CAO to apply; they do not apply automatically.

In practice, many employers and CAOs have abolished waiting days entirely. Others apply one waiting day rather than the maximum of two. If you have a chronic illness or frequently recurring condition, waiting days can accumulate and become a significant burden. Some CAOs have special provisions for such situations.

It is important to note that waiting days only apply to the first day(s) of each new period of illness. If you relapse within four weeks of a previous period of illness with the same or a related condition, the periods are counted as one continuous period, and no new waiting days apply. What constitutes a single period of illness can be a point of dispute — the timing of recovery notifications and the nature of the condition are relevant factors.

When can your employer suspend or stop sick pay?

While the obligation to continue payment during illness is broad, there are specific circumstances in which your employer may reduce, suspend or stop your sick pay. It is important to distinguish between a suspension (opschorting) and a stop (stopzetting), as they have different legal consequences.

Salary suspension (opschorting)

Your employer may suspend your salary payment if you do not comply with reasonable control measures. Specifically, a suspension is permitted if you:

• Do not attend appointments with the company doctor without a valid reason.
• Refuse to provide information that is necessary for the company doctor to assess your ability to work.
• Are unreachable for the employer or company doctor.

A suspension is temporary: once you comply with the control measures, the withheld salary must be paid retroactively. The employer must give you a written warning before implementing a suspension.

Salary stop (stopzetting)

Your employer may stop your salary payment entirely in more serious situations. The salary for the period of the stop is permanently lost and will not be paid retroactively. Grounds for a salary stop include:

• Intentionally causing the illness: if your illness was caused intentionally (opzet), the employer is not required to pay. The burden of proof lies with the employer and is extremely high. Risky hobbies, sports injuries, or lifestyle choices are virtually never considered intentional causation under case law.
• Providing false information: if you provided false information during your hiring that concealed a pre-existing condition relevant to your ability to perform the work.
• Refusing suitable work: if the company doctor has confirmed that you are able to perform adapted or alternative work and you refuse it without a valid reason.
• Obstructing recovery: only if it is established on the basis of a medical assessment (by the company doctor) that your activities hinder your recovery or delay your return to work. The employer cannot unilaterally determine that you are obstructing your recovery.
• Refusing to cooperate with the plan of action: if you refuse to participate in the reintegration plan without a valid reason.

Sick pay after your contract ends

A crucial question arises when your employment contract ends while you are still ill. This can happen if your temporary contract expires, or if your employment is terminated for a reason unrelated to your illness. In these situations, the employer's obligation to continue payment ends with the employment contract. But what happens to your income?

Sickness Benefits Act (Ziektewet)

If your employment ends while you are ill, you may be entitled to sickness benefits (Ziektewet-uitkering) from the UWV. The Sickness Benefits Act provides a safety net for employees who are ill and no longer have an employer. The benefit is generally 70% of the daily wage (up to the maximum daily wage) and can last for the remainder of the two-year illness period.

You are typically eligible for Sickness Benefits Act payments in the following situations:

• Your temporary contract expires while you are ill.
• You become ill during the period between the end of your employment and the start of your unemployment benefits.
• You are a temporary agency worker (uitzendkracht) and become ill.
• You are pregnant or have recently given birth.

Risk when signing a settlement agreement

If your employment ends through a settlement agreement while you are ill, the situation becomes more complicated. The UWV may consider the settlement agreement a benadelingshandeling (detrimental action) — you voluntarily gave up your employer's obligation to continue paying your salary. In that case, the UWV can impose a sanction on your sickness benefit, typically a permanent reduction of a percentage or, in severe cases, a complete refusal.

After two years: WIA

Regardless of whether your employer or the UWV pays during the two-year period, after 104 weeks the UWV assesses whether you are entitled to WIA disability benefits. The WIA distinguishes between IVA (for full and permanent incapacity, benefit: 75% of daily wage) and WGA (for partial or potentially temporary incapacity). The WGA has several phases: an income-related benefit (duration depends on employment history), followed by either a wage supplement or a follow-up benefit depending on your actual earnings relative to your residual earning capacity. If you are assessed as less than 35% incapacitated, you do not qualify for WIA benefits. The transition to WIA is a major financial moment, as WIA benefits may be lower than your previous sick pay.

Sick pay and settlement agreements

The intersection of sick pay and settlement agreements is one of the most complex and risky areas of Dutch employment law. If you are ill and your employer offers a settlement agreement, the financial stakes are exceptionally high.

What you stand to lose

By signing a settlement agreement during illness, you give up your right to continued salary payment for the remainder of the two-year period. Depending on when you sign, this can amount to a substantial sum. For example, if you are three months into your illness and earn €4,000 gross per month, you could be giving up 21 months of sick pay — potentially over €58,000 in salary (assuming 70% payment for the remaining period).

Compensation should reflect the loss

If you decide to consider a settlement agreement during illness, the severance payment should reflect what you are giving up. This means the compensation should account not only for the statutory severance pay (transitievergoeding) but also for the lost sick pay, lost reintegration support, and any impact on your sickness or disability benefits. In practice, settlement agreements during illness should include significantly higher compensation than agreements for healthy employees.

Protecting your benefit rights

The settlement agreement must be carefully drafted to minimise the risk of the UWV refusing or reducing your sickness benefits. This requires expert legal knowledge of both employment law and social security law. At OntslagLegal, our lawyers specialise in this area and can review your agreement for free.

Frequently asked questions about sick pay in the Netherlands

How much sick pay will I receive in the Netherlands?

By law, your employer must pay at least 70% of your salary during the first two years of illness. In the first year, this amount cannot fall below the minimum wage. However, many collective labour agreements require 100% salary continuation in the first year and 70% in the second year. Check your CAO and employment contract for the specific percentages that apply to you.

For how long does my employer have to pay sick pay?

Your employer must continue paying your salary for a maximum of 104 weeks (two years) from the first day of illness. After this period, the obligation ends, and you may transition to WIA disability benefits or unemployment benefits, depending on your situation. In exceptional cases, the UWV can extend the obligation by one year as a penalty if the employer did not meet their reintegration obligations.

Can my employer stop paying me during sick leave?

Your employer can stop your sick pay in specific circumstances: if you refuse suitable work without a valid reason, if you obstruct your recovery, if you refuse to cooperate with the reintegration plan, or if you intentionally caused your illness. Before stopping payment, your employer must give you a written warning and an opportunity to correct the situation.

What happens to my sick pay if I have a temporary contract?

If your temporary contract expires while you are ill, your employer's sick pay obligation ends on the contract's end date. Whether you qualify for sickness benefits (Ziektewet-uitkering) from the UWV depends on your situation — you must still be ill at the end date of the contract. If you have recovered by that point, you may be able to apply for unemployment benefits instead. Register with the UWV promptly after your contract ends.

Is holiday allowance included in sick pay?

In principle, yes. Holiday allowance (vakantiegeld) continues to accrue during illness and is calculated over the sick pay amount. If you receive 70% of your salary as sick pay, your holiday allowance accrues at 8% of that 70%. However, the precise treatment may depend on your CAO or employment contract, as some agreements contain different arrangements. Holiday allowance is paid out in May or June, as usual, or at the end of your employment.

What if my employer refuses to pay sick pay?

If your employer refuses to pay sick pay while you are entitled to it, you should first seek a UWV expert opinion (deskundigenoordeel). This independent assessment can cover not only your incapacity for work, but also whether suitable work is available and whether the reintegration efforts by either party are adequate. You can then demand payment from your employer, supported by the UWV's assessment. If your employer still refuses, you can file a claim with the subdistrict court. It is advisable to seek legal advice in this situation.