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  • Writer's pictureDMS Netherlands

The Dutch social system and its burdens

The social system in the Netherlands is quite extensive, reflecting their commitment to social equality and the safety net they offer for those in need. The scheme aims to ensure a decent standard of living and promote social cohesion in society. Some of the critical aspects of life the government supports the people with are healthcare, education, social security, labour rights and the pension system. An extensive support system such as that of the Netherlands raises the question; What is the tax and premium burden in the Netherlands, how does this compare with the rest of the EU, and what does the social security system in the Netherlands widely entail?



Under average


The tax and premium burden is the total revenue from taxes and social security contributions expressed as a percentage of the Gross Domestic Product (GDP). According to Eurostat (2022), the burden was 40.2% in 2021. And even though this number has been rising a little faster than average, it is still under the 41.7% average of the European Union. Countries like Denmark, France and Belgium even showed burdens of more than 45%. Some countries in the east of Europe offer relatively low tax and premium burdens; however, these countries do not spend as much on social security (CBS, 2022).


Strong social protection


The Dutch government aims to have strong social protections and a comprehensive welfare state. It exists of Social insurance and social benefits. Social insurance is financed from premiums withheld and paid by employers. Social benefits are paid from tax money (Randstad, n.d.). Some social insurances are mandatory for everyone; this ensures people receive payments when they are too old to work or have children. Other social insurances are only compulsory for people that work to protect them when they lose their jobs or fall ill. Social services are for people who are not eligible for social insurance or who receive payments too low to live on (Randstad, n.d.).

Let’s get in Touch!


The extensive system of the Netherlands is working. People in the Netherlands rank in the top-5 happiest countries in the world and are among the countries with the lowest poverty rate (World Population Review, 2023). The Netherlands could be a great place to establish your company, and DMS can be your partner in business in the Netherlands. They are a privately owned boutique corporate service provider and offer services in Domiciliation +, Management, Administration and Liquidation.


Many of the colleagues at DMS have been with the company for many years and are dedicated to forging longstanding relationships with their clients. DMS proudly originates from the Crédit Agricole family, and the values and standards of high-level international commerce are in their DNA. DMS has been providing top-tier management services to a wide range of clients for over 20 years.

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