A pay slip can be very confusing and unclear. In this article, we are explaining what every component means and help you understand your pay slip better. Please view the payslip attached to look up the meanings of every component on your payslip
1. Person ID:
The person ID is your personal identification number used for the employee data system.
2. Assignment number:
This is the number for your role in the company.
3. Person first start:
The date on which you first started with the company
4. Contract first start:
The start date of your (current) contract
5. Tax Table:
The table color indicates what type of income the employee earns. There is a white table (Wit) for income from current employment and a green table (Groen) for income from previous employment. These tables are used because both incomes are taxed differently.
6. Tax credit
When you have a tax credit on “yes” (also known as Wage Tax Discount) you pay less in taxes. It's like getting a discount on your taxes. If you owe €1,000 in taxes and you have a tax credit of €200, your tax bill becomes €800.
If you have a tax credit on “No” you don't get a direct discount on your taxes. You'll have to pay taxes based on your income and other tax deductions.
So, having a tax credit means you pay less in taxes. If you don't have one, you need to use other tax-saving methods, and you might end up paying more in taxes. Tax credits are like special discounts that can help you keep more of your money.
7. ZW/WW/WAO/Zvw: What do these abbreviations mean?
ZW (Ziektewet):
The Ziektewet, often abbreviated as ZW, is the Dutch Sickness Benefits Act. It provides income support to employees who are unable to work due to illness or disability. This benefit is typically paid by the employer for the first two years of illness. After that period, the employee may transition to the WIA (see below) if they remain unable to work.
WW (Werkloosheidswet):
The Werkloosheidswet, abbreviated as WW, is the Dutch Unemployment Insurance Act. It provides income support to individuals who have lost their jobs and are actively seeking new employment. This benefit helps unemployed individuals with financial assistance while they search for a new job.
WAO (Wet op de arbeidsongeschiktheidsverzekering):
The Wet op de arbeidsongeschiktheidsverzekering, abbreviated as WAO, is the Dutch Disability Insurance Act. It provides income support to individuals who are partially or fully disabled and unable to work due to a long-term disability. The Dutch government has made changes to the WAO, and it has been replaced by the WIA (see below) for new claimants.
Zvw (Zorgverzekeringswet):
The Zorgverzekeringswet, abbreviated as Zvw, is the Dutch Health Insurance Act. It's a mandatory health insurance program for residents in the Netherlands. Under this system, everyone in the country is required to have basic health insurance coverage to help cover the costs of healthcare services. This insurance is provided by private health insurance companies but is regulated by the government.
8. Contract type:
With Flink, you most likely have a temporary contract. This means your contract has an expiration date.
9. Contract end date:
The end date of your contract
10. Written Contract:
You have a written contract which the employee signs for.
11. Standby-contract:
This means you have a zero-hour contract or minimum. Either contract is considered to be a ‘standby’ contract as there are no fixed hours per week.
12. Permanent contract
If you have a permanent contract (does not expire), it will show ‘Yes’ otherwise it will say ‘No’.
13. Birthdate
Your date of birth
The following covers the bottom part of your payslip:
14. Worked hours:
The amount of worked hours in the period mentioned at the top
Additional hours
If you have a min-max contract, all hours made above the ‘min’ (minimum) and under the ‘max’ (maximum) are ‘additional hours or more hours’.
Overtime 100%
If you have a min-max contract and you work more than your ‘max’ hours, this is considered overtime hours.
If you have a zero-hour contract, your max is 40 hours per week. Any worked hours above this mark are considered overtime hours.
17. Holiday allowance
The 8% holiday allowance on your payslip represents the annual vacation pay that you're entitled to as an employee in the Netherlands. It's also known as "vakantiegeld." This allowance is typically equal to 8% of your gross annual salary. This is paid out weekly to you.
Paid vacation hours
When you take up holiday days and it's approved in Quinyx, it will be paid out under the name "Vacation Hours".
Please note this is not the same as the holiday allowance.
17. EE contribution pension:
EE: This stands for "Employee's Contribution." It represents the portion of the pension plan contributions that an employee makes from their own salary or wages. In many pension systems, both employers and employees contribute to the pension fund. The employee's contribution is usually deducted from their paycheck on a regular basis, and it's used to fund their retirement savings.
18. "Basis f. WgTax" is a term often used in the context of wage tax in Germany. Let us break down its components:
Basis: "Basis" generally means "basis" or "foundation." In the context of wage tax, it usually refers to the basis or foundation on which the wage tax calculation is made. This would typically be your taxable income, and it might include components like your gross salary, certain benefits, or deductions.
f.: This is an abbreviation for the German word "für," which means "for" or "of."
WgTax: "WgTax" stands for "Wage Tax". It is the tax that is withheld from an employee's salary by their employer and is used to cover income tax and social security contributions.
19. Wage Tax White:
Wage tax ‘white’ refers to the tax scale you applied to receive a tax discount on your wages.
20. EE contribution “WGA/Whk”
The term "EE Contribution WGA/Whk" typically refers to an employee's contribution to the "WGA" and "Whk" components of the Dutch social security system, specifically related to the Workers' Compensation Act (WGA) and the Return to Work (Whk) premium. Here's what these components mean:
WGA (Werkhervattingsregeling gedeeltelijk arbeidsgeschikten): The WGA is part of the Dutch social security system that deals with partially disabled workers. It provides income support to individuals who are partially disabled and able to work partially but earn less than they did before their disability. Employees, together with their employers, contribute to the WGA fund through their payroll taxes.
Whk (Werkhervattingskas): The Whk is the premium related to the Return to Work program. It aims to facilitate the return of employees to the workforce after a period of disability. Employers contribute to the Whk premium, which helps fund reintegration and work-related services for employees who are unable to perform their previous job due to disability.
The "EE Contribution" part of the term means that it represents the portion of these contributions that is deducted from an employee's salary. So, "EE Contribution WGA/Whk" signifies the amount that an employee pays into these specific components of the Dutch social security system, which help support partially disabled workers and their return to work.
It's important to note that the specific amounts and rules for these contributions can vary.
21. Net Wages
"Net wages" refers to the amount of money an employee receives from their employer after various deductions have been taken out of their gross wages. It represents the actual take-home pay that an employee receives in their paycheck.
22. Payable amount:
The "payable amount" on your pay slip is the total amount of money that you are entitled to receive from your employer for the specific pay period covered by the pay slip. It represents your net earnings after all deductions and withholdings have been subtracted from your gross income. In other words, it's the actual amount of money you will receive in your bank account or as a physical paycheck.
23. Transfers
The bank account displayed is the bank account to which the salary is being transferred.
Please note this can only be the bank account of the employee.
ER contr. Zvwons Zvw:
On your payslip, "ER Contr. Zvwons Zvw" refers to Flink’s contribution to the Dutch Health Insurance Act (Zorgverzekeringswet or Zvw). Here's a breakdown of the components of this term:
ER: This stands for "Employer's Contribution." It represents the portion of the Dutch health insurance contribution that your employer pays on your behalf.
Contr.: This is an abbreviation for "contribution," indicating that it's a financial contribution or payment.
Zvwons Zvw: The "Zvw" in this context refers to the Dutch Health Insurance Act (Zorgverzekeringswet), which is a mandatory health insurance program in the Netherlands. "Zvwons" typically denotes "Zvw ordinary" or the standard contribution rate for health insurance.
24. Hourly rate
Your hourly wage excluding an 8% holiday allowance (varies per age group)
25. Minimum wage
The amount shown is the hourly rate x 40 hours. This is a baseline to calculate the correct wage for the amount of hours worked. It serves as a reference point to confirm that Flink is complying with labor laws and paying you at or above the legally mandated minimum wage rate
26. CLA
"CLA" on your payslip typically stands for "Collective Labor Agreement" (in Dutch: Collectieve Arbeidsovereenkomst), which is a legally binding employment agreement negotiated between employers and labor unions or workers' representatives. These agreements set out the terms and conditions of employment for a specific group of employees, often within a particular industry or sector. In this case, the E-commerce sector.
27. Group
Shows which staff category you fall under.
28. Level
The age group you are part of (between 16 and 21+)
29. Wage Tax
Wage tax is the portion of your total earnings that goes toward paying your income tax liability.
On the bottom left, you will see additional information regarding your hourly rate and CLA.
Here you will also find your pay scale in relation to the CLA.
Additionally, your pay slip shows how much you have been paid so far in this calendar year on the bottom right under ‘Cumulative amounts’.
30. Workdays
The amount of days worked in a single period (week).