Social security is meant for people who are no longer able to support themselves due to illness, unemployment or retirement.
Social security in the Netherlands is divided in three main sections:

• social security which is subdivided into two sections: national insurances (volksverzekeringen)   and employee insurances (werknemersverzekeringen);
• social assistance;
• old age pension provisions.

Apart from some exceptions, everyone who lives in the Netherlands is insured under the umbrella of the national insurance schemes. The national insurance cover for the following schemes :

1. Child benefit (AKW);
2. old age pension (AOW);
3. survivor benefit (Anw);
4. exceptional medical expenses (AWBZ).

Contributions are paid through income tax with the following rates*:

1. 17.9% for the AOW
2. 1.25% for the AnW
3. 12% for the AWBZ        

The rates are based on the year 2007*

People who are currently 65 and over do not contribute to the AOW. The AKW is not a contributory scheme.
The old pension age (AOW) starts from the age of 64 and the amount payable depends on the duration of the employment in the Netherlands or other countries which have a similar reciprocal agreement with the Netherlands. The amount consitsts of 2% of the full pension for every year of full contributions made to the scheme.
The AnW pays survivor benefits to widow or widower and dependant children of  a deceased person insured under the act.
Together with the already existant medical coverage provided by the Health Insurance Scheme and private health insurances,  a surplus of medical coverage for treatment and medical expenses is provided by the AWBZ.
The AKW provides families with child benefits for each child they have under the age of 18.       
All persons who are employed in the Netherlands have to take part and contribute to the national Employee Insurance Scheme which grants coverage for the Benefits Acts (ZW/WULBZ), the Disability Insurance Act (WAO), the Unemployment Insurance Act (WW) and the Health Insurance Act (Zorgverzekeringswet). Employers are obliged to contribute to these schemes as well.

The WULBZ organization demands from employers to pay employees at least 70% of their salary pay day in case of sickness up to a maximum period of 104 weeks. The ZW does the same but for temporary employees and those who do not have a regular employer. Maternity leave covers a period up to16 weeks.
The WAO provides insurance cover for people unable to work after 52 to 104 weeks of disability, with amounts dependent on factors such as the age, severity of the disability and previous salary.
Unemployment benefits payable under the WW make of 70% of the minimum wage or the last salary received, whichever is less, for six months for a person previously employed for 26 of the previous 39 weeks before becoming unemployed. If an unemployed person has also been in employment in at least 52 days in at least four of the last five years before becoming unemployed, the employee is eligible to receive 70% of the latest salary in unemployment benefits for a period depending on the employee’s duration of employment.
In January 2006, the new Health Insurance Act (Zorgverzekeringswet) came into force. In the new system, employees are required to pay a nominal contribution of around EUR 1,100 for their health insurance and an income-related fee of 6.5% up to a maximum of EUR 2, 080, the latter being generally reimbursed by employers. These contributions have to be paid by the self employed as well. Unemployed spouses are required to pay the nominal whilst dependent children get a free coverage. Health insurance providers are obliged to accept everyone for the basic package; this can be extended by supplementary insurance (subject to acceptance) to suit your personal situation.