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Performance based remuneration practices

Last updated on 13 June 2025
A manager may use the below instruments to reward an employee who performs exceptionally well or for any other reason that justifies an additional remuneration. The manager is always advised by the HR Advisor in this context.

The provisions of the Collective Labour Agreement (CLA) are leading. Given that VU Amsterdam, as an educational institution, is largely funded by public money, remunerations and additional remunerations should be transparent, moderate and justifiable. That the allocation of additional remuneration is properly motivated and remains within the limits of the CLA and the VU Amsterdam way of working is also important to avoid imbalance or unequal treatment. Only in exceptional cases will special remuneration be allocated. 

These measures were updated and adopted by the MT of HRMAM on 9 April 2025. 

If you arrange the change via this self-service option in more than 4 weeks before the effective date, timely processing and payment are in general guaranteed. Changes you arrange less than 4 weeks before the effective date will usually be processed and paid out later.

Types of remuneration pratices

  • Allowances as remuneration

    The manager may award the employee an allowance as a remuneration for exceptional performance beyond the normal requirements of the job. It concerns the following allowances:

    • performance allowance 
    • allowance on other grounds/personal allowance
    • board membership allowance

    For more information, see the page on allowances.

  • Bonus

    According to the CLA, managers have the option of awarding bonuses to employees who have performed to a level well beyond their normal position and working hours. Bonuses are gross one-off amounts paid out in a particular month. 

    Any bonus requires the approval of the manager’s superior and HR Advisor. Bonuses exceeding €500 gross are submitted to the director of operations or service department director. If the manager’s superior is the director of operations or service department director, the HR Advisor will submit the decision to the director of HRMAM. If the manager’s superior is the director of HRMAM, the HR Advisor will submit the decision to the director of institutional affairs.    

    The bonus and its motivation will be confirmed in writing to the employee by the manager. A minimal justification for a bonus is given in a report of an interview with the employee, in which details are provided of the underlying reasons for awarding it.

    To apply for a bonus for outstanding performance by an employee, the manager goes to the self-service option in the service portal.  

  • Higher salary step due to good performance

    If an employee’s performance is as can be expected, the CLA stipulates that their salary is increased by one step each year, which is known as the annual increment increase.  

    Managers have the option of awarding extra increments to employees who perform outstandingly. This is one step (a periodic increase) in the employee’s current salary scale. The date of increment will change automatically: counting from the effective date of the extra increment, the employee will automatically receive the annual increment increase 12 months later (unless the extra increment moves the employee in question to the end of their salary scale). This automatic date of increment change cannot be adjusted manually, not even by the HR Service Desk. 

    The awarding of a higher salary step by the manager requires a recommendation by the HR Advisor. In case of a negative recommendation by the HR Advisor, a decision by the manager’s superior is required. If the manager’s superior is the director of operations or service department director, the HR Advisor will submit the decision to the director of HRMAM. If the manager’s superior is the director of HRMAM, the HR Advisor will submit the decision to the director of institutional affairs.      

    To register an extra increment, go to the self-service option in the service portal. In principle, the employee makes the changes themselves, using the self-service option. If necessary, the manager can also do this on behalf of the employee.

  • Higher salary step in case of promotion

    Employees eligible for promotion to a job profile in a higher salary scale are classified horizontally with effect from the date of promotion. An additional salary step may be awarded according to the CLA.  

    The date of increment will change automatically: counting from the effective date of the extra increment, the employee will automatically receive the annual increment increase 12 months later (unless the extra increment moves the employee in question to the end of their salary scale). This automatic date of increment change cannot be adjusted manually, not even by the HR Service Desk. 

    A promotion and the awarding of a higher salary step require the recommendation of the HR Advisor. Both decisions can only be taken by the manager. In case of a negative recommendation by the HR Advisor, a decision by the manager’s superior is required. If the manager’s superior is the director of operations or service department director, the HR Advisor will submit the decision to the director of HRMAM. If the manager’s superior is the director of HRMAM, the HR Advisor will submit the decision to the director of institutional affairs.    

    To register a promotion, go to the self-service option in the service portal. In principle, the employee makes the changes themselves, using the self-service option. If necessary, the manager can also do this on behalf of the employee.

  • Other token of appreciation

    An employee or group of employees can receive an alternative token of appreciation, such as a book voucher. This form of in-kind remuneration, with a value of up to €100 per employee, is included only in the budget justification, along with a description of the grounds for award. Higher amounts must be awarded in the form of a bonus. 

More information

Collective Labour Agreement, Articles 3.3 and 3.12 to 3.19

This page constitutes a clear and readable summary of the CLA text.
Please note: in case of any doubt, the CLA itself shall prevail.

Questions

If you have any questions about performance-based remuneration practices, please contact the HR Advisor of your faculty or service department.

Are you looking for information on these topics too?

Contact VU - HR Service Desk

servicedesk.hrm@vu.nl
Opening hours: Monday to Friday from 08:30 AM - 05:00 PM.

020 59 82882
Opening hours: Monday to Friday from 9:00 AM - 12:00 PM and 1.00 PM - 4.00 PM.

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