If you lose your job in the Netherlands, your 30% ruling ends at the latest on the last day of the pay period after the one in which your last working day falls. You can keep it if you start with a new employer within 3 months. That makes the end date of your employment, and the way your contract deals with the ruling, an employment law question as much as a tax question. This page explains what to watch for in a dismissal or settlement agreement. Figures are for 2026.
Written by Onur Arslan, employment lawyer at Arslan Advocaten. Tax rules as published by the Dutch Tax Administration (Belastingdienst), checked on 25 September 2026. This page is general information, not tax advice.
The 30% ruling in short
- Your employer may pay you up to 30% of your salary as a tax-free allowance for extraterritorial costs. From 2027 the maximum is 27%. In 2026 the tax-free allowance is capped at € 78,600 for a full year of employment (Belastingdienst).
- The ruling lasts at most 5 years.
- You must have been recruited from abroad: in the 24 months before your first working day in the Netherlands, you lived more than 16 months more than 150 km from the Dutch border.
- You must have specific expertise, measured by salary: in 2026 a taxable annual salary above € 48,013, or above € 36,497 if you are under 30 and hold a master’s degree (Belastingdienst).
What happens when your employment ends
According to the Belastingdienst, the ruling ends at the latest on the last day of the pay period following the pay period in which your last working day falls. After that, your salary is taxed without the allowance, so your net income drops even if your gross salary stays the same.
If you change jobs, the ruling can continue under conditions: you start with a new employer within 3 months of your previous job ending, and you and your new employer apply within 4 months of your start.
Why the end date matters in a dismissal or settlement agreement
The end date determines when the ruling stops and when your 3-month window for a new job starts running. In a settlement agreement (vaststellingsovereenkomst) that date is negotiable. Points to discuss:
- A later end date, possibly with garden leave, keeps your employment and salary running for longer. Whether the ruling can still be applied during garden leave depends on whether the conditions continue to be met; check this with your employer’s payroll before you sign.
- Your residence permit: as a highly skilled migrant you have a separate search period with the IND, which also starts when your contract ends. See dismissal and your residence permit.
- Compensation: the statutory transition payment is the usual benchmark in negotiations, not a minimum. Estimate it with the transition payment calculator.
- Unemployment benefit (WW): the wording of the agreement affects your WW position. Have it reviewed before you sign; see settlement agreement review.
Salary cuts, fewer hours and the salary norm
If your taxable salary in a calendar year falls below the indexed salary norm, the ruling lapses with retroactive effect to 1 January of that year. A reduction of hours or salary, for example as part of a reorganisation or a return-to-work plan after illness, can therefore cost more than the pay cut itself. Ask for the effect on the ruling to be calculated before you agree.
What your employment contract says about the ruling
The ruling is a tax facility that your employer applies through payroll, and it is chosen per year. Many contracts state the salary “including” or “excluding” the allowance, or say what happens if the ruling ends. That wording decides whether a change costs you or your employer. If your employer wants to stop applying the ruling, or the ruling ends early, have your contract checked before accepting a new salary arrangement.
How we help
We review dismissal proposals and settlement agreements for international employees with the end date, the 30% ruling and your residence position in mind, and negotiate on your behalf in English. For the tax treatment itself we work with your tax adviser. Contact us for a free first assessment, or read more about employment law in the Netherlands.
Frequently asked questions
What happens to my 30% ruling if I lose my job?
The ruling ends at the latest on the last day of the pay period following the pay period in which your last working day falls. If you start with a new employer within 3 months and apply within 4 months of starting, the ruling can continue, provided you still meet the conditions.
Can my employer stop applying the 30% ruling?
The ruling is applied through your employer’s payroll, and it is a choice made per year. Whether your employer may simply stop, and whether you are then entitled to compensation, depends on what your employment contract says about your salary and the ruling. Have the contract checked.
Does a lower salary affect my 30% ruling?
Yes. If your taxable salary in a year falls below the indexed salary norm (in 2026 € 48,013, or € 36,497 for under-30s with a master’s degree), the ruling lapses with retroactive effect to 1 January of that year. Keep this in mind when agreeing to fewer hours or a salary cut.
