Pension with a Zero-Hours Contract

In the current labour market, zero-hours contracts remain a common form of employment. With a zero-hours contract, you only have to work the hours for which you are called upon and you receive the minimum wage or the salary specified in the collective labour agreement (CLA). An employer must call you in at least four days in advance; otherwise, you are not legally obliged to work.

Zero-hours contracts are particularly applicable in sectors where labour demand fluctuates constantly. While zero-hours contracts offer a certain degree of flexibility, it is important to carefully consider what this means for employment conditions, including pension accrual. Pension schemes are crucial for establishing your long-term financial security. If you would like to know more about your rights regarding pension accrual with a zero-hours contract, GJ GROEP can provide further information.

Are You Entitled to a Pension with a Zero-Hours Contract?

One answer to this question is yes, because everyone employed by a company is entitled to pension accrual, even with a zero-hours contract. Another answer to this question is no. Even if you are entitled to pension accrual, it does not mean that it will actually happen. Employers in the Netherlands are not legally obliged to include everyone in the pension scheme.

Furthermore, there are several conditions attached to accruing a pension. An employee must have been employed for a certain period, and it is sometimes age-dependent. Although you always have a right to a pension, an employer will not always be obliged to arrange it for you.

Check if there is a Mandatory Pension Scheme under the CLA

When you intend to start employment with an employer on a zero-hours contract, it is advisable to carefully read the collective labour agreement (CLA) to see if there is a mandatory pension scheme. If there is, an employer may not exclude you from this scheme based on your zero-hours contract.

If no CLA applies, or if it contains no specific provisions regarding pension accrual, the employer may determine their own scheme. Therefore, it is wise to inquire about the available options for pension accrual.

Want to Accrue More Pension?

If you are working on a zero-hours contract without being eligible for pension accrual through your employer, there are various ways to arrange your own pension. It is important to be proactive in planning your financial future. Some options include:

• Annuity Policy

  You can take out an annuity policy to build up your pension. You can choose how much and how often you contribute money. This money is invested so that your pension can continue to grow.

• Pension Savings with a Bank

  Pension accrual through bank savings is a flexible choice. The money you transfer is saved or invested in an account that you cannot access until your retirement age.

• Self-Investment

  If you want to take more risk, you can also choose to invest for your pension yourself. This gives you direct control over what happens to your money.