Find your employer of record in Netherlands

Netherlands famous place - EOR World Wide
Netherlands - EOR World Wide

Netherlands

currency

Euro (EUR)

Currency

Payroll_Frequency

monthly

Payroll Frequency

Employer_Tax

13.46 to 25.72

Employer Tax

With 2 clicks, start your journey to Hire a contractor or remote employees in Netherlands without a entity set up.

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Overview

Capital

Currency

Date Format

Fiscal Year

Reviews

Amsterdam

Euro (EUR)

DD/MM/YY

January 1st-December 31st

0 / 5 Star (0 Reviews)

Netherlands famous place - EOR World Wide

Find your employer of record in Netherlands

Netherlands

currency

Euro (EUR)

Currency

Payroll_Frequency

monthly

Payroll Frequency

Employer_Tax

13.46 to 25.72

Employer Tax

Overview

Capital

Currency

Date Format

Fiscal Year

Reviews

Amsterdam

Euro (EUR)

DD/MM/YY

January 1st-December 31st

0 / 5 Star (0 Reviews)

0

With 2 clicks, start your journey to Hire a contractor or remote employees in Netherlands without a entity set up.

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Overview

Euro (EUR)

CURRENCY

Amsterdam

CAPITAL

monthly

PAYROLL FRECUENCY

11

PUBLIC HOLIDAYS

13.46 to 25.72

EMPLOYER TAXES

13TH / 14TH SALARY

The 13th Salary in this region is usual and typically given at the end of the year.

Employee and employeer taxation in Netherlands

Employer

Company Payroll Contributions

5.49% - 7.05%

WAO/WIA: Invalidity Insurance Fund 5.46% (small companies) to 7.05% (medium to big companies)

0.34% - 5.34%

WW Premium: Unemployment Fund (0.34% AWF layer - 5.37% AWF higher)

6.75% - 6.75%

ZVW: Medical Insurance Act (max. contribution income 59,706 EUR)

0.21% - 3.36%

WHK: Work Resumption Fund

0.17% - 2.72%

Sickness Benefits Act

0.50% - 0.50%

Child Care Premium



13.46% - 25.72%

Total Employment Cost

Employee

Worker Payroll Contributions

17.90%- 17.90%

Old Age Pension (AOW)

0.10%- 0.10%

Orphans and Widow Pension (ANW)

9.65%- 9.65%

Long Term Care (WLZ)

0%- 2.70%

General Unemployment Fund (AWF: for workers under permanent contracts with an undetermined duration)


27.65% - 30.35%

Total Employee Cost



Employee Income Tax in Netherlands

Employee Income Tax

37.07%

Up to 69,398 EUR

19.50%

Over 69,399 EUR

Netherlands famous place - EOR World Wide
Netherlands famous place - EOR World Wide
Minimum Wage in Netherlands
General

The Dutch minimum wage (wettelijk brutominimumloon) for adults ages 21 and up is 1,725.00 EUR per month.

$2069 Minimum Wage per month

Netherlands famous place - EOR World Wide

Payroll Contributions in Netherlands

Payroll Cycle

Payroll is done monthly in the Netherlands. Work completed between the first and final days of the month is usually compensated on the final day of the month. Hiring an Employer of Record in the Netherlands means that employers can delegate this responsibility to a third-party. 

13th Salary

A 13th-month compensation is optional; it is up to the company to provide any additional income or bonus.

Employee Benefit in Netherlands


Visa and work permit in Netherlands

Nationals of the EU, EEA, and Switzerland are not formally required to get a work or residence permit. However, in order to be qualified for social security payments, individuals must obtain a residency permit.


Before entering the Netherlands, citizens of the USA, Japan, New Zealand, Canada, Australia, and all other non-EU/EEA/Swiss foreign nations must obtain a "authorization temporary stay" (MVV) from the Dutch consulate or embassy in their home country.

VAT in Netherlands

In The Netherlands, the usual VAT rate is 21%. An Employer of record in the Netherlands will ensure that the company they are working for remain compliant under every law. 

Working Hours in Netherlands
General

When working in the Netherlands, the regular working week cannot exceed 45 hours, with a median of 40 hours each week/9 hours every day.

Overtime

Overtime compensation is necessary if work time limits are exceeded. The employee's collective agreement/employment in the Netherlands contract specifies the maximum number of overtime hours.

Working Week

Monday to Friday.

Employee Termination in Netherlands
Termination Process

Depending on the type of agreement and the grounds for termination, the termination procedure differs depending on how the Contract of employment in the Netherlands and Cooperative Agreement are in place. But without the Employee Insurance Agency (UWV), no dismissal for financial reasons or long-term disability can take place.

Notice Period

The Netherlands' one-month statutory minimum notice requirement for termination is subject to the following factors depending on the employee's length of service:


  • Less than five years: One month notice
  • 5 to 10 years: Two months’ notice
  • 10 to 15 years: Three months’ notice
  • 15 years or more: Four months’ notice

With PEO services or an Employer of Record in the Netherlands, companies can smoothly go through the termination process of an employee.

Severance Pay

The employment contract or collective agreement must include provisions for transition payment, which is what severance pay is known as in The Netherlands. In general, when a company terminates an employee's employment agreement, the employee is entitled to compensation beginning on the first day of work.


According to the contract, the amount owed is determined, but at the very least, it is computed at a pace of one-third of the normal income for each year of service, reaching a maximum of 84,000 EUR.

Probation Period

Trial or probation periods are typically outlined in collective bargaining agreements and employee contracts; nonetheless, the norm in the Netherlands is 2 months.

Employee Leaves in Netherlands
Paid Time Offs

Each year, a full-time worker is eligible to 20 paid vacation days. Offering 24 or even 32 days of annual paid leave is customary in the Netherlands.


Additionally, any unused vacation time from the prior year should be used by July in the Netherlands, and the employer is required to let the employee know if it is about to run out. Although only for the legal minimum number of days, this requirement.

Netherlands famous place - find your EOR
Public Holidays

There are 11 national holidays throughout the year.

Vacation Holidays

There are 20 vacation holidays throughout the year.

Sick Days

An employee has the right to 70.00% of their last income earned for a full year if they are unable to work due to illness. For illnesses that last more than a year, the WULBZ (legal obligation to continue paying wages while ill) comes into force. This statute permits the continuation of salary payments at (a minimum of) 70% of the regular wage for up to 104 weeks of sickness.


Some employers add to this to offer the full compensation. This is only allowed for the first year of illness; if the illness lasts longer than that, the maximum payment is limited to 70% of the employee's wage.

Paternity Leave

After the child is born, the father or partner is eligible for one week of paternity leave.


Additionally, Dutch employees have a right to 5 weeks of unpaid leave within the first six months following childbirth. Despite the fact that this time off is unpaid by the employer, workers can still receive up to 70% of their wage through the Employment Insurance Agency (Uitvoeringsinstituut Werknemersverzekeringen, UWV).

Paternal Leave

All parents are guaranteed at least 9 weeks of paid leave, paid by the state, as long as the absence is used within the initial year of the child's life. New parents are also eligible to receive 50% of their salary for the first 9 weeks of leave.

Other Leave

Upon contract between the company and employee and in accordance with the conditions of the collective bargaining agreement or employment contract, a worker may be entitled to extra leave types for the following reasons:


  • Employees may take up to 2 days of paid time off each year for short-term care, albeit they will only be paid 70% of their regular income.
  • Adoption leave: Employers may submit a request to the Employee Insurance Agency for a six-week adoption leave allowance on behalf of their Dutch employees (Uitvoeringsinstituut Werknemersverzekeringen, UWV).


If a company wants to hire employees in the Netherlands, they must also acquire Employer of Record services to ease their processes.

Maternity Leave in Netherlands

An employee who is pregnant is eligible for 16 weeks of maternity leave, which is divided into prenatal and postoperative periods.


  • Prenatal leave: A worker needs to take 4-6 weeks off before the anticipated due date (zwangerschapsverlof).
  • Postnatal leave: An employee is required to take the final 10–12 weeks (bevallingsverlof), which begin on the child's birth date.


The Employee Insurance Agency may cover the cost of maternity leave (Uitvoeringsinstituut Werknemersverzekeringen, UWV). However, it is customary for the company to keep making wage payments, and the UWV will then reimburse the employer. Let us say being pregnant or giving birth renders you unable to work. In that instance, for a maximum of one year following the date of birth, the employee is qualified for benefits equal to 100% of her pay.

There are 112 leave throughout the year.

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