Why Horizons Does Not Offer a Pension in the Netherlands

Understanding the Challenge

Under Dutch regulations, payrolling companies that offer a pension must ensure it is 'decent' and, where applicable, aligned with the pension plan provided by the end client. This requirement ensures equal treatment of all employees. However, for an Employer of Record (EOR) like Horizons, this presents a significant challenge.

Many of our clients do not have a Dutch legal entity, making it impossible to mirror their pension plans directly. Additionally, our clients operate globally, each with different pension structures and contribution models. Ensuring equal treatment while accommodating various international pension schemes would be highly complex and impractical.


Our Approach

To address this challenge while ensuring fairness and flexibility, Horizons Netherlands follows an alternative approach:

  • Instead of offering a specific pension plan, we provide clients with the option to mirror the pension contribution percentage that they provide in their home countries.
  • If a client chooses this approach, the amount is added as a gross pension allowance to the employee’s monthly payroll.
  • Employees then have the flexibility to either set up their own pension fund with Dutch providers like Brand New Day or ASR or treat the allowance as an additional salary component.


Why This Approach Works

This method ensures that, when applicable, employees receive pension-related compensation in a way that aligns with their employer’s existing structure while still complying with Dutch employment regulations. By offering a pension allowance as an optional approach rather than a mandatory benefit, we provide clients with flexibility while allowing employees to choose the best retirement savings option for their needs.

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