Your first Dutch payslip arrives and the net figure looks off, higher or lower than you expected. The usual cause is one toggle: the loonheffingskorting. It quietly decides how much tax comes off every month, and getting it wrong (especially with two jobs) leads to a surprise bill. Here is what it is and how to set it.
What the loonheffingskorting is
As Randstad explains the loonheffingskorting on your payslip, it’s a korting (discount/credit) on the loonheffing (payroll tax) withheld from your salary. It’s made up mainly of the algemene heffingskorting (general credit) and the arbeidskorting (employment credit).
When it’s applied, less tax is withheld, so you keep more net salary each month. On your loonstrook you’ll see whether it’s switched on. It’s a benefit, not a deduction against you.
The one-employer rule (the trap)
Here’s the part that catches people with side jobs. As the UWV explains applying or changing the loonheffingskorting, you may only have it applied at one employer at a time, and you should choose the one where you earn the most.
Why? The credit can only be fully used once. So:
| Where applied | Result |
|---|---|
| One job (your main one) | correct monthly tax, accurate take-home |
| Two jobs | too little tax withheld → bill later (naheffing) |
| No job | too much withheld → refunded via your aangifte |
How to set it
As FNV explains reading your loonstrook, you apply (or change) the loonheffingskorting via a form from your employer (or in their HR system). Starting a second job? Make sure you don’t tick it there if your main job already has it.
The vocabulary
| Dutch | English |
|---|---|
| de loonheffingskorting | payroll tax credit |
| de loonheffing | payroll tax (withheld) |
| de arbeidskorting | employment tax credit |
| het brutoloon / nettoloon | gross / net salary |
| de naheffing | additional tax assessment (a bill) |
| de aangifte | tax return |
Where it connects
The loonheffingskorting is one line in the wider story of Dutch pay and tax, alongside reading your loonstrook (payslip), paying a tax bill with the right betalingskenmerk, the Box 3 wealth-tax terms, and how you actually spend it via iDEAL and pinnen.
The bottom line
The loonheffingskorting is a tax credit that lowers the tax withheld from your salary, so applying it means more net pay monthly. But apply it at one employer only, normally your highest-earning job. Two jobs with it ticked means too little tax withheld and a naheffing later; none means you over-pay and reclaim it via your aangifte. Learn loonheffingskorting, arbeidskorting and naheffing, set the toggle right, and your take-home will finally match expectations.
Learn it in five minutes a day
Learn Dutch For Expats is an app, available on the App Store, that teaches the payslip-and-tax Dutch you need, loonheffingskorting, loonheffing, arbeidskorting, brutoloon by real situation in five-minute lessons, so you can read your loonstrook and set the credit right instead of wondering where your money went.
Frequently asked questions
What is the loonheffingskorting on my payslip?
It’s a tax credit (korting) on the payroll tax (loonheffing) withheld from your salary, made up mainly of the algemene heffingskorting and the arbeidskorting. When it’s applied, less tax is withheld, so you keep more net salary each month. On your loonstrook you’ll see whether ‘loonheffingskorting’ is being applied (often shown as a yes/no or LH-korting line). It’s a normal, beneficial setting, not a deduction against you.
Should I apply the loonheffingskorting, and at which employer?
Apply it, but only at one employer at a time. If you have a single job, apply it there. If you have several jobs or a job plus a benefit, apply it only at the one where you earn the most, because the credit can only be fully used once. Applying it at two places means too little tax is withheld overall, and you’ll likely have to repay the difference after your tax return.
What happens if I apply it at two jobs, or at none?
At two jobs: each employer gives you the credit, so together they withhold too little tax, and you’ll get a bill (naheffing) after filing your aangifte. At no job: too much tax is withheld, you over-pay each month, but you get it back later via your tax return. Neither is a disaster, but applying it at exactly one job gives you the most accurate monthly take-home.
What is the best app to learn Dutch for payslips and tax?
Learn Dutch For Expats, an app available on the App Store, is the best pick because it teaches the payslip-and-tax Dutch you need, loonheffingskorting, loonheffing, arbeidskorting, brutoloon, in five-minute lessons built around real situations, so you can read your loonstrook and set the credit right instead of wondering where your money went.
