Part-Time - Culture or Economics?

48% of Dutch workers work part-time (according to CBS criteria, this means fewer than 35 hours per week). Absolute record holders in work-life balance. In the EU, OECD statistics count part-time employment as fewer than 30 hours per week, and even by those standards, the Netherlands ranks first — 36% of workers choose to work less (the EU average is 17%).

Of course, this relaxed and gezellig lifestyle can partly be explained by cultural features, but what role has the local tax system played?

According to research, the Netherlands has the highest rate of part-time employment in Europe due to a unique combination of:

• cultural norms — work is seen as part of life, not its center. Part-time is not a "less prestigious" form of employment.
• gender expectations — 63% of women work part-time, partly due to internalized societal norms about household duties.
• expensive and insufficient childcare and after-school care
• historical reforms and flexible legislation — since the 1980s, the Netherlands has actively promoted the flexicurity model. Employees have the right to reduce or increase their working hours; equal rights for part-timers (pension, vacation, insurance are proportional).
• labor market structure — many sectors traditionally operate in part-time format: retail, horeca, education, care, logistics.
• tax incentives — tax credits (heffingskortingen) and the toeslagen system make part-time work economically viable. In some cases, additional working hours can even reduce total family income through loss of subsidies.

The Netherlands has several key tax credits that reduce the tax amount rather than the tax base. Main credits:

• Algemene heffingskorting — general tax credit.
• Arbeidskorting — employment credit

These credits decrease as income rises:

• work part-time and earn less — you receive a higher credit;
• increase your hours — the credit decreases, and net income grows slower or even drops.

Toeslagen — these are government subsidies that depend on income, e.g.:

• zorgtoeslag — healthcare insurance subsidy
• huurtoeslag — rental subsidy
• kinderopvangtoeslag — childcare subsidy
• kindgebonden budget — family benefit

The lower the income, the higher the subsidies. When a certain income level is reached, the right to the subsidy is lost.

Thus, additional working hours can reduce or completely eliminate toeslagen, creating a paradox: work more — receive less.