It's everybody's least favorite part of their payslip. The dreaded payroll tax. We all pay it, however and how this tax is calculated is based on different aspects. In this text you'll read a bit more about what that percentage consists of. But more importantly, when you're eligible for a payroll tax reduction.

I work for one employer

The payroll tax is calculated based on several aspects; the hourly wage, the number of hours you work and your age. The more you earn, the more payroll tax you end up paying. Besides, if you work more than 40 hours per week, any hours that surpass that 40 hour mark will be taxes more heavily.

Your employer already applies two tax discounts when calculating your salary: the general tax credit and the employment tax credit. This means you pay less tax each month and receive a higher net salary. If you work through 365Werk, we have sent you a Payroll tax reduction form upon signing your employment agreement. By selecting the 'with discount' option, your income tax is decreasedsignificantly.

I have multiple employers

It is important to remember that you can only apply the wage tax credit with one employer. This is best done with the employer where you work and earn the most. A classic case of 'the more you earn, the more you save'.

Do you work for several employers in a certain period and do you have the wage tax reduction applied to all of them? Then you will have to pay this back when you file your tax return. If you have paid too much payroll tax because you don't have it turned on anywhere, then of course you will also get this money back when you file your tax return!

If you have any questions pertaining to this subject, please do not hesitate to reach out!

Updated on: 21/04/2026