The Netherlands has a world-leading pension system, according to the Mercer CFA Institute Global Pension Index 2024. That’s another strong incentive for skilled people from the EU to work on projects here.
As an employment agency, InAxtion has an obligation to participate in the ‘STIPP’ pension scheme, a Dutch pension system set up for people in the temporary employment sector. Here’s what you need to know.
What is the STIPP pension fund?
The STIPP pension fund is a Dutch pension scheme that gives short-term or temporary employees access to retirement savings. ‘STIPP’ stands for the Pension Fund for Staffing Services – Stichting Pensioenfonds voor Personeelsdiensten.
The fund is specifically designed for employees in the temporary employment sector, such as agency workers or freelancers working through employment agencies. The fund is mandatory for temporary workers in the Netherlands.
All temporary employment agencies in the Netherlands use the same pension fund. That means as a worker, you continue to accumulate pension when you work on projects for different agencies.
How does the STIPP pension scheme work?
There are two types of STIPP pensions: Basic and Plus.
- STIPP Basic: This is the entry-level pension plan for temporary workers. If you are aged 18 or older, you become eligible for this plan on the first day of employment in the Netherlands. There’s no waiting time, and it applies to your first 52 weeks of work.
As an employee in this scheme, you do not make contributions from your own salary. Your employer pays it for you. The pension builds up slowly in this phase due to the lower contribution rate – 8% from your employer.
If you are sick and unable to work, you do not accrue pension, but if you have a spouse or civil partner, this scheme covers them as well.
- STIPP Plus: After 52 weeks, you automatically move to the ‘Plus’ pension plan. At this level, the contribution is 12%. Contributions are made by both you (4%) and your employer (8%).
As contribution rates for the Plus pension scheme are higher than the Basic scheme, you accrue more pension. The Plus pension also covers a person you live with: they don’t have to be a spouse or civil partner. On top of that, if you are sick and unable to work, your pension contributions are still collected.
How the STIPP pension scheme works at InAxtion
When you’re employed by InAxtion, you’re automatically entered into either the STIPP Basic or STIPP Plus pension scheme (depending on your previous number of weeks working in the Netherlands). You don’t need to take any action – we arrange it for you. We pass your details to the pension fund, and they contact you directly.
For the first 52 weeks of employment in the Netherlands, you don’t pay into the pension fund yourself, InAxtion pays the 8% pension premium for you. When you’ve worked 53 weeks or more, you contribute 4% of your pay. This is automatically deducted from your earnings by your employers (InAxtion). The 4% comes on top of the 8% pension premium that InAxtion keeps paying for you
Where do I get information about my pension rights?
You will immediately accrue pension with StiPP from your first working day, if you are 18 years or older. InAxtion registers you there when you start working. It takes approximately 2.5 months from your first working day before you receive the welcome letter from STIPP with further information. They keep you informed about your pension rights on their website with your own portal: Mijn STIPP Pensioen.
You can find answers to common questions about living and working in the Netherlands in InAxtion News. Explore now
