Remote’s guide to employing in the Netherlands.
Dutch (official language), Frisian (official language in Frisia),
Remote-Owned Local Entity
We own our own entity in the countries where we operate to shield your company from risk and provide you and your employees with the signature Remote experience.
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!
Dutch (official language), Frisian (official language in Frisia),
17,593,030 (Nov 2021)
Ease of doing business
Cost of living index
$$$$ (15 of 139 nations)
VAT - standard rate
GDP - real growth rate
3,77% (2021 est.)
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.
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.
|Saturday, January 1, 2022||New Years Day|
|Friday, April 15, 2022||Good Friday|
|Sunday, April 17, 2022||Easter Sunday|
|Monday, April 18, 2022||Easter Monday|
|Wednesday, April 27, 2022||King's Day,Kings Day|
|Thursday, May 5, 2022||Liberation Day||Public Sector. Official holiday every 5 years (next one 2025)|
|Thursday, May 26, 2022||Ascension Day|
|Sunday, June 5, 2022||Whitsun|
|Monday, June 6, 2022||Whit Monday|
|Sunday, December 25, 2022||Christmas Day|
|Monday, December 26, 2022||2nd Christmas Day|
Minimum monthly wage is € 1.725 (+ 8% or 138 EUR a month in holiday allowance) per month for any employee over the age of 21.
For customers of Remote, all employee payments will be made in equal monthly installments 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.
At Remote, we’re obsessed with helping you craft the best possible employee experience for your team. We are leading the way in practicing “fair equity,” which means making sure employees everywhere have access to both the required and supplemental benefits they need to thrive (and that will allow you to attract the best local talent).
Our benefits packages in Netherlands are tailored to fulfill the local needs of your employees. Typically, our packages contain some or all of the following benefits:
In order to access specific information about our benefits packages in the Netherlands, start onboarding your first employee with Remote today.
Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in the Netherlands.
5.49% - AOF laag (Disability insurance contribution) on a maximum of €59,706 EUR of taxable base
6.75% - Heffings ZVW premie (Dutch health insurance contributions) on a maximum of €59,706 EUR of taxable base
1,11% - Premie Whk gediff (Differentiated Premium Work Resumption Fund) on a maximum of €59,706 EUR of taxable base
0.50% - Uniforme opslag kinderopvang (Uniform Childcare Allowance) on a maximum of €59,706 EUR of taxable base
2.70 to 7.70% - AWF hoog (depending on contract) on a maximum of €59,706 EUR of taxable base
The AWf premium has a low of 2.70% in 2022 a high of 7.70% in 2022. The premium an employer must pay for the employee depends on the type of employment contract (and note that these premiums are updated each year). You pay the low premium if the contract is in writing, set for an indefinite period, and not an on-call contract.
17.90% - Old Age Pension (AOW) over € 35.472 (included in income taxes)
9.65% - Long Term Care (WLZ) over € 35.472 (included in income taxes)
0.10% - Orphans and widow/widower pension (ANW) over € 35.472 (included in income taxes)
37.07% - Income tax for up to 69,398 Euro
49.50% - Income tax for over 69,398 Euro
49.50% - Income tax for employees without or awaiting BSN number (anoniementarief) - tax credits not applied until receiving BSN number and retroactively applied to start date upon receiving BSN number
up to 2888 EUR credit - Employees are entitled to a "general tax credit" (heffingskorting) of -6.007% per euro extra gained between 21,317 EUR stopping and 69,398 EUR annually. This is to be deducted from the income taxes.
up to 4260 EUR credit - Employees are entitled to a "labor tax credit" (arbeidskorting), this is to be deducted from the income taxes, of:
Labour income Labour tax credit
Until € 10.351 4,541% x labour income
From € 10.351 to € 22.357 € 470 + 28,461% x (labour income - € 10.351)
From € 22.357 to € 36.650 € 3.887 + 2,610% x (labour income - € 22.357)
From € 36.650 to € 109.347 € 4.260 - 5,860% x (labour income - € 36.650)
As of € 109.347 € 0
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.
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.
Employer in general has five options to terminate employment agreement:
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 periods cannot exceed two months. The probation period applies to both the employer and the employee.
Depending on your employee's situation, we may be able to sponsor their visa application. Talk with our team today.
If Remote visa sponsorship isn't the best route for your employee, below are other possible visas they could apply for. We can also help with the visa application process.
These visa options should not be considered legal advice and are subject to change. The estimated time will vary per case.
The Dutch International Commercial Trade Regulations (ICTR) Program came into force on 2017 and replaced the narrower Knowledge-Based Industry Pilot Program which ran as a test from July 2013 to June 2017. Under this work permit waiver program, Dutch companies can bring non-EU/EEA/Swiss foreign nationals to the Netherlands to perform activities as part of a pre-approved project related to e.g. the delivery of goods and services for a period of up to three years. Work permits are not required but a notification should be made to the Dutch Labour Authorities and a residence permit applied for stays of over 90 days.
Time until employee can start work: 3 to 4 months
You are going to work in the Netherlands, but you live in another EU Member State, such as Belgium or Germany.
Time until employee can start work: 1 to 2 months
A type of visa or work permit available to non-EEA/EFTA citizens employed by and working for a company in an EU/EEA/EFTA country, that allows them to work for that company in another EEA/EFTA member state, subject to meeting certain eligibility conditions.
Time until employee can start work: 2 weeks to 1 month
The Highly Skilled Migrant Program (HSM) or Knowledge Migrant (KM) Program is a very lenient and beneficial work and residence authorisation category for foreign nationals going to work and reside in the Netherlands and who meet certain criteria. It must be sponsored by a recognised sponsor with the IND (Dutch Immigration Authority). When submitted via one of the Expatcenters in a major city, this process can be further expedited. The One Stop Process is a streamlined process that requires the applicant to make just one visit to the authorities post-arrival: the registration and collection of residence permit is combined.
Time until employee can start work: 1 to 4 months
The Highly Skilled Migrant (HSM) Program or Knowledge Migrant (KM) Program is a very lenient and beneficial work and residence authorisation category for foreign nationals going to work and reside in the Netherlands and who meet certain criteria. It must be sponsored by a recognised sponsor with the IND (Dutch Immigration Authority).
Time until employee can start work: 1 to 4 months
Companies that are transferring employees into the Netherlands but whose local entities are NOT registered with the IND as recognised sponsors under the Knowledge Migrant route may be able to follow a work permit procedure for intra-company transfers (ICT). Note that there are significant annual turnover requirements.
Time until employee can start work: 2 to 6 months
This process is the temporary residence authorisation for intra-company transfers (ICT), according to Directive 2014/66/EU. It is only applicable to assignees falling into management/specialist or trainee categories sent to the Netherlands for over 90 days from outside the EEA and has a maximum total duration of stay of three years. If an applicant meets qualifying criteria for this process, they may not apply under an alternative route (i.e. may not use the HSM category).
Time until employee can start work: 1 to 6 months
In 2020, the Netherlands experienced a net migration of +33,720.
From our Best Destinations for Remote Work report, the following made the top 100 list:
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The Netherlands has a tax treaty with Albania, Algeria, Argentina, Armenia, Aruba, Australia, Austria, Azerbaijan, Bahrain, Bangladesh, Barbados, Belarus, Belgium, Bosnia and Herzegovina, Brazil, Bulgaria, Canada, China, Croatia, Curaçao, Czech Republic, Denmark, Egypt, Estonia, Ethiopia, Finland, France, Georgia, Germany, Ghana, Greece, Hong Kong, Hungary, Iceland, India, Indonesia, Ireland, Israel, Italy, Japan, Jordan, Kazakhstan, Korea, Kosovo, Kuwait, Kyrgyzstan, Latvia, Lithuania, Liechtenstein, Luxembourg, Macedonia, Malawi, Malaysia, Malta, Mexico, Moldova, Montenegro, Morocco, New Zealand, Nigeria, Norway, Oman, Pakistan, Panama, Philippines, Poland, Portugal, Qatar, Romania, Russia, Saudi Arabia, Serbia, Singapore, Slovakia, Slovenia, South Africa, Spain, Sri Lanka, Sint Maarten, Suriname, Sweden, Switzerland, Taiwan, Tajikistan, Thailand, Tunisia, Turkey, Uganda, Ukraine, United Arab Emirates, United Kingdom, United States, Uzbekistan, Venezuela, Vietnam, Zambia, and Zimbabwe.
The information contained in this site is for general guidance on matters of interest only. The application and impact of laws can vary widely based on the specific facts involved. Given the changing nature of laws, rules and regulations, and the inherent hazards of electronic communication, there may be delays, omissions or inaccuracies in information contained in this site. Accordingly, the information on this site is provided with the understanding that the authors and publishers are not herein engaged in rendering legal, accounting, tax, or other professional advice and services. As such, it should not be used as a substitute for consultation with professional accounting, tax, legal or other competent advisors.
While we have made every attempt to ensure that the information contained in this site has been obtained from reliable sources, Remote is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information in this site is provided “as is”, with no guarantee of completeness, accuracy, timeliness or of the results obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability and fitness for a particular purpose. In no event will Remote or employees thereof be liable to you or anyone else for any decision made or action taken in reliance on the information in this site or for any consequential, special or similar damages, even if advised on the possibility of such damages.