Money matters
Answer
This means the amount of wage tax you have to pay.
In the Netherlands, we operate a progressive tax system. Sounds complicated, but fortunately it’s not that bad. It means that people who earn more pay more tax. This is calculated on the basis of your gross salary.
To make sure there are no surprises at the end of the year, we pay this tax monthly. This is called PAYE (pay as you earn). We deduct this tax from your pay, so you don’t get a hefty bill from the tax authorities later because you didn’t pay enough.
Want to learn more? On the tax authorities’ website, you can see the payroll tax tables we use for this purpose.
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