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Social security system provides financial aid


Social security system provides financial aid

The Netherlands has a social security system, which will help you and your family if you get in financial trouble for certain reasons, such as when you become ill, incapacitated for work, unemployed, or when you retire; these are all circumstances that have an impact on your financial situation. In such cases, the social security system provides suitable financial support.

Everyone in the Netherlands contributes to the social security system by paying taxes and premiums. Your employer pays these taxes and premiums for you and then deducts them from your gross salary. The system is very fair, because people with a higher income pay more than people with a lower income.

How does the Dutch social security system work?

The Dutch social security system is quite complicated. Below is a brief explanation.

The system consists of social provisions and social insurance.

Social provisions

Social provisions include benefits and other types of financial support provided by the government using tax money.

There are a number of different types of social insurance:

  • General social security: general social security provides you with insurance for a range of scenarios, such as if you require intensive medical care, if you are retiring, or if your partner passes away. Also, all Dutch residents with children below the age of 18 are entitled to child benefits for them to use to care for and raise their children.
  • Employee insurance: employee insurance provides you with insurance for a range of scenarios, such as if you become incapacitated for work, fall ill, or become unemployed. If you lose your job, you are entitled to at least 70% continued pay. Note that you are only entitled to these unemployment benefits if you have worked at least 26 of the 36 weeks before becoming unemployed.

If you want to know more about the Dutch social security system, you can read about it here

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