and contractors in The Netherlands
Remote’s guide to employing in the Netherlands.
Facts & stats
The Netherlands (Dutch: Nederland, informally Holland), is a country in Western Europe along the North Sea coast. In Europe, it consists of 12 provinces that border Germany to the east, Belgium to the south, and the North Sea to the northwest, with maritime borders in the North Sea with those countries and the United Kingdom. The Netherlands ranks among the highest in international indexes of press freedom, economic freedom, human development and quality of life, as well as happiness. Remote's CEO is Dutch!
Grow your team in the Netherlands with Remote
Employing in the Netherlands requires employers to own a legal entity in the country and manage payroll, tax, benefits and compliance through their own in-country resources. The complexity of employment regulations in the Netherlands makes full compliance with employment laws a burdensome process.
Through Remote’s Global Employer of Record solution, your team is employed by our local legal entities in each country, and we take care of payroll, tax, benefits and compliance so you can focus on what matters most -- your people.
The Netherlands, like many other countries, treats self-employed individuals or contractors and full-time workers differently and there are risks associated with misclassification. A new law is coming into force in 2020 that clarifies the types of workers and companies may be fined for misclassification.
Employing in the Netherlands
Employment law in the Netherlands is not contained under a single law. Instead it is governed by statutory regulations codified in (among other laws) the Dutch Civil Code, then furthermore governed by (among other things) Collective Labour Agreements (Dutch Collectieve arbeidsovereenkomst, CAO) in certain industries, internal regulations (if applicable) and the individual employment contract itself.
Employment law provides strong labor conditions and protections for employees, so employing people will generally be an important investment and commitment.
However, temp agencies are popular options for more flexible workforce arrangements. For these and many other reasons, the following are only guidelines in the broadest sense, and professional legal services are recommended when employing in Netherlands.
The official website for employment information is at the Ministry of Social Affairs and Employment.
|Date||Holiday Name||Extra information|
|New Year's Day|
|Good Friday||Depends on contract|
|Liberation Day||Depends on contract|
Minimum monthly wage is € 1,653.60 per month for any employee over the age of 21.
- For customers of Remote, all employee payments will be made in equal monthly instalments on or before the last working day of each calendar month, payable in arrears.
We can help you get a new employee started in the Netherlands fast. The minimum onboarding time we need is only 8 working days.
Our team ensures your employees are onboarded and paid as quickly as possible while keeping your business compliant with all local employment legislation. The minimum onboarding time begins after the employee submits all required information onto the Remote platform. The onboarding timeline is also dependent upon registration with local authorities.
For all non-nationals of the country of employment, the Right to Work assessment (if applicable) will add three extra days to the total time to onboard. There may be extra time required if we need to follow-up on the right to work assessment.
Please note, payroll cut-off dates can impact the actual first day of employment. Remote has a payroll cut-off date of the 10th of the month unless otherwise specified.
Competitive benefits package in the Netherlands
Besides providing your employees with all statutory benefits in the Netherlands, Remote can advise on and arrange for custom benefits and perks for your employees upon request.
Taxes in the Netherlands
Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in the Netherlands.
- 2.94% - 7.94% - Unemployment Insurance
- 7.93% - Disability
- 6.70% - Health Insurance
- 17.90% - Old Age Pension (AOW)
- 9.65% - Long Term Care (WLZ)
- 0.10% - Orphans and widow/widower pension (ANW)
- 8.90% - Up to 20,142
- 13.20% - 20,142 - 33,994
- 40.85% - 33,994 - 68,507
- 51.95% - Over 68,507
Types of leave
All full-time workers are legally entitled to 20 days paid holiday leave a year. In more detail, statutory holidays are based on the number of weekly working hours with the minimum being 4 times the number of weekly work hours. Vacation days carry over to the next year and expire if not taken within six months.
- Pregnancy and
Expecting mothers are entitled to 4-6 weeks of pregnancy leave (before the due date) and at least 10 weeks maternity leave (after childbirth). If the employee takes less than 6 weeks pregnancy leave before the birth, she is entitled to add the remaining amount (up to 2 weeks) to her maternity leave after the birth.
If the baby is born later than the due date, the employee's maternity leave begins after the actual birth and the total may therefore be longer than 16 weeks.
Employees with children aged up to 8 can take unpaid parental leave in the Netherlands. They are eligible as soon as they start working for you. You must allow this leave.
- Adoption or foster leave: upon adoption of a child or have taken in a foster child, employees are entitled to 6 weeks of adoption or foster leave. Applies to both parents.
- Emergency and short absence leave: intended for unforeseen personal circumstances for which an employee has to take time off immediately. Examples include making arrangements for the care of a sick family member or in the event of a death in the family.
- Short-term care leave: to provide essential care to parents, ill children who still live at home or partners. Only granted on the condition that the employee in question is the only person who can look after the ill person at that time.
- Long-term care leave: when a child, partner or parent of the employee is seriously (i.e. life threateningly) ill and requires care, the employee can request long-term care leave.
- Unpaid leave: the employee may take unpaid leave in consultation with the employer on a full-time or part-time basis. There is no legal requirements to unpaid leave.
- Special or extraordinary leave: not statutory required, but may be part of the employment contract. May include leave for giving official notice of an intendned marriage, marriage of a family member, moving house, funeral of a family member, a service or wedding anniversary, an interview or for consulting a doctor.
Employer in general has five options to terminate employment agreement:
- Termination by mutual consent through a settlement agreement;
- Termination proceedings before the Employment Insurance Agency (UWV);
- Termination proceedings before sub-district courts;
- Termination with consent of the employee;
- Urgent dismissal of the employee, for example in case of theft or any other serious misconduct.
The statutory notice period for an employer depends on the duration of employment, with a maximum of 4 months.
Duration of probation or trial period depends on the length of the employment contract. Probation period cannot exceed 2 months. The probation period applies to both the employer and the employee.