All employees in the Netherlands were compulsorily insured. For the self-employed, it was voluntary.
The birth of social security in the Netherlands
Social security schemes in the Netherlands include national insurance, social welfare and employee insurance. They are often counted as taxes – and in part they are. But in any case, they are all strongly intertwined with taxes. Examples of social security schemes include the old-age pension (AOW), disability benefit, child benefit, sickness benefit, unemployment benefit and so on.
In 1919, the Disability and Pensions Act came into being. This act insured against incapacity for work, and provided entitlement to the following:
- Disability benefit
- Old-age pension at age 70
- Widow’s pension
- Orphan’s pension
- Medical treatment costs
All employees in the Netherlands were compulsorily insured. For the self-employed, it was voluntary. The security the act provided was hard fought for.
Shield sticker promoting membership of the State Pension Union
Cinderella stamp promoting the state pension
Cinderella stamp promoting the state pension
The system was that employers provided employees with savings stamps. Here are two examples. There were daily, weekly, monthly and quarterly stamps.
It was quite a complicated system. That is why it came with extensive instructions.
The stamps had to be stuck onto savings cards. When the cards were full, they had to be handed in at the nearest Social Insurance Bank office. Here is an example of a savings card.
Front of savings card
Back of savings card
The Social Insurance Bank recorded the savings balance in a savings book. Any payouts were noted in a payment book.
Example of old-age pension payment book
This was the practice from 1919 until 1967 when the Disability Act was repealed. Meanwhile, other social insurance laws had gone into effect that replaced the Disability Act, such as the Old-Age Pension Act (AOW) in 1957. People who were entitled to a payout under the savings stamps scheme could redeem their stamps up until 1991.
