Dutch employers increasingly recruit AOW-eligible workers

Employers in the Netherlands are increasingly utilizing and recruiting workers who have reached the state pension age (AOW) to address labor market shortages. According to research by the employers' association AWVN, a quarter of employers actively seek out or request that employees continue working after reaching retirement age.

Data from CBS indicates that the number of AOW recipients in paid employment rose from 7.2% in the second quarter of 2014 to 9.5% in the second quarter of 2026. While still a relatively small group, the trend is growing.

For employers, hiring AOW-eligible workers offers specific advantages under Dutch law. Since July 1, 2023, the obligation to continue paying wages during illness is limited to a maximum of six weeks, compared to the standard 104 weeks for other employees. Additionally, reintegration obligations and dismissal protections during illness are significantly more restricted. However, AWVN notes that employers must remain mindful that existing collective labor agreements (CAO) and individual employment contracts may limit these legal advantages.