Netherlands

Available

Capital
Amsterdam
Currency
Euro
Language
Dutch
Population
17,134,872
GDP Growth
3.16%
GDP World Share
1.03%
Payroll Frequency
Monthly
Working Hours
36-40
hours/week

See how hiring works in Netherlands

Learn about local payroll, taxes, and employment laws in Netherlands

Minimum Wage Standards

The statutory minimum wage for full-time employees aged 21 and above is €2,495 per month (€14.40/hour), effective from July 2025. Employees under 21 receive pro-rated amounts based on age brackets.

For employer of record arrangements, the minimum compensation including holiday allowance reaches €2,695.68 monthly or €32,348.16 annually.

Income Tax Structure

Personal income tax operates on a progressive system with rates ranging from 37.07% to 49.50%.

Annual Income Bracket Tax Rate
Up to €73,031 36.93%
Above €73,032 49.50%

Employer Contributions

Total employer costs typically amount to approximately 34% of the base salary, calculated on maximum social security thresholds of €66,956 gross annually.

Mandatory Contributions:

  • Unemployment Insurance: 2.64% (indefinite) / 7.64% (fixed-term)
  • National Health Insurance (ZVW): 6.57%
  • Disability Insurance: 7.54%
  • Work & Sickness Insurance (WGA/ZW): 0.40%
  • Childcare Benefits Contribution: 0.50%
  • Mandatory Occupational Health: 15%
  • Company Doctor: €8.00 (estimated)

Additional Costs:

  • Contract Labor Service Fee: €15
  • Workplace Accident & Illness Coverage: €112

Important Note: These figures are estimates for informational purposes. Actual costs vary based on employment terms and specific circumstances. Contact our team for accurate calculations tailored to your situation.

Overtime & Working Hours

Overtime compensation is not legally mandated but commonly provided through collective agreements.

Standard working hours: 8 hours daily, 40 hours weekly. The standard workweek runs Monday through Friday.

Maternity Leave

Expecting mothers employed full-time are entitled to up to 16 weeks of paid pregnancy leave, including a mandatory 4-week pre-birth period. For multiple births, the entitlement extends to 20 weeks.

Typically, 4-6 weeks of leave are taken before the expected delivery date. Leave may be extended if the employee is unable to work due to pregnancy or childbirth complications. Medical appointments during pregnancy are compensated by the employer.

Compensation is provided at 100% of gross salary, capped at 100% of maximum daily earnings. Employers can request statutory reimbursement through the Employee Insurance Agency (UWV). No qualifying service period applies.

Paternity Leave

Partners of employees who give birth are entitled to paid leave equivalent to their weekly working hours (5 working days for full-time employment).

This paid leave must be taken within the first four weeks following the birth. Additionally, employees may take "short absence leave" for the birth itself.

Leave is paid by the employer. An additional 5-week birth leave option exists for full-time employees. This extended leave is unpaid by the employer but eligible for state benefits at 70% of last earned salary (capped at 70% of maximum daily wage), granted through the Employee Insurance Agency (UWV).

Parental Leave

Parents with children under 8 years old are entitled to parental leave of 26 times their weekly working hours per child. For full-time employees, 9 weeks are paid while the remaining 17 weeks are unpaid.

The initial 9 weeks of leave are government-funded at 70% of regular salary (capped at 70% of maximum daily wage). Flexibility exists for taking this leave, which can be distributed throughout the 8-year period. Parents must take parental leave for each child individually.

Employers may request an allowance for paid parental leave from the Employee Insurance Agency (UWV).

Sick Leave

Employers must continue salary payments to ill employees for a 2-year period.

Wage payment consists of 70% of last earned salary, provided the salary doesn't exceed the maximum daily wage. In such cases, continued wage payment is capped at 70% of the maximum daily wage.

During the first year of illness, many employment contracts stipulate employer payment of 70% or 100% of full salary (amount may be capped). In the second year, 70% of the employee's salary (capped amount) applies.

Termination Framework

Employment terminations must comply with specific regulations and involve consideration of the employee's home country laws. The separation process is managed by the employer in coordination with key stakeholders, potentially including administrative fees and recommended procedures for specific termination scenarios.

Employers may only terminate employment contracts with valid justification combined with the absence of suitable alternative positions within the organization. Valid grounds specified in legislation include:

  • Economic redundancy circumstances
  • Long-term disability (exceeding two years)
  • Frequent absences due to illness or disability affecting business operations
  • Performance deficiencies
  • Misconduct
  • Refusal to fulfill contractual obligations due to conscientious or religious beliefs
  • Deteriorated working relationship

Legal Requirement: Terminations typically require authorization from Courts or the Employee Insurance Agency (UWV). In most situations, seeking mutual consent for termination is preferred, as governmental authorization becomes unnecessary in such cases.

Notice Period Requirements

When termination occurs through mutual agreement, notice periods are typically required to obtain employee consent. Standard notice periods range from 1-4 months based on length of service.

Notice periods must be applied consistently:

  • Less than 5 years of service: 1 month notice
  • Between 5-10 years of service: 2 months notice
  • Between 10-15 years of service: 3 months notice
  • 15+ years of service: 4 months notice

Severance Compensation

Mutual consent terminations typically require severance payments to secure employee agreement. Standard severance ranges from 2-6 months of salary or more, depending on case strength.

For court-ordered or UWV-approved terminations, statutory severance equals approximately 1/3 of gross monthly salary per year worked.

Risk Management: To minimize unforeseen financial exposure from terminations, our employer of record service includes a Severance Reserve for all employment agreements. This service features comprehensive expertise in managing litigation risk internationally, with severance calculations based on prevailing common-law, statutory provisions, and local best practices. Unused reserve amounts are returned to you if employees resign or aren't entitled to severance.

Paid Annual Leave

The statutory minimum vacation entitlement for employees equals four times the weekly working hours per year.

For full-time employees working five days weekly, this typically translates to 20 vacation days annually. Most employers provide employees with 25 days of paid annual leave.

Public Holidays

The country observes 11 official public holidays annually.

National public holidays include:

  • New Year's Day
  • Good Friday
  • Easter Sunday
  • Easter Monday
  • King's Day
  • Liberation Day (observed every 5 years)
  • Ascension Day
  • Whit Sunday
  • Whit Monday
  • Christmas Day
  • Boxing Day

Onboarding Timeline

The onboarding process is completed within 2 business days following client execution of the Statement of Work.

Compensation Structure

The 8% holiday allowance is incorporated into annual salary calculations. Consequently, employee annual salary displayed on our platform includes both the base annual salary and the 8% holiday allowance.

When establishing employee annual salary, ensure inclusion of both base salary and the 8% holiday allowance.

The 8% holiday allowance is invoiced monthly as an employer cost, separate from the primary salary.

Employment Contract Specifications

Employment agreements in the local language are not legally mandated. An English-only version is permitted under local legislation and represents common practice.

Essential contract elements include:

  • Employee name
  • Commencement date
  • Employment duration
  • Position description
  • Termination provisions

Fixed-term contracts are commonly recommended to establish a strong match before transitioning to permanent employment, as terminations can involve complexity. Up to 3 consecutive fixed-term contracts are permissible with a maximum combined duration of 3 years.

Probationary Period

Probationary durations may extend up to 2 months maximum for indefinite term employment agreements and fixed-term arrangements of 2 years or longer.

For fixed-term contracts under 2 years (minimum 6 months), a 1-month probationary period may be established. This provision cannot be extended under local regulations.

How it works

Your Global Hiring Process

We take care of employing your team, so you can focus on growing

You choose the talent

You select the candidate you want to hire, anywhere in the world.

We employ them for you

MB Remote becomes the legal employer and handles contracts, payroll, and local labor laws.

Your team starts working

Your employee works directly with you, just like an in-house team member.

We manage compliance

We ensure ongoing payroll, taxes, and legal compliance in the employee’s country.

Frequently Asked Questions

Is it free to contact MB Remote?

Yes. Contacting us is completely free and without obligation. We’ll discuss your needs and explain how our EOR solution works before anything else.

Hiring can usually be completed within a few days, depending on the country and local requirements.

An Employer of Record is a legal entity that employs workers on your behalf. MB Remote handles contracts, payroll, taxes, and local labor law compliance, while you manage the day-to-day work.

MB Remote is the legal employer, but the employee works exclusively for you as part of your team.

We support hiring in multiple countries. Contact us to check availability for a specific location.

We manage payroll, taxes, and social contributions in compliance with local regulations. You receive one simple monthly invoice.

Yes. You manage tasks, schedules, and performance. We handle the legal and administrative side.