the Netherlands
Make employment in the Netherlands easy. Let us handle payroll, benefits, taxes, compliance, and even stock options for your team in the Netherlands, all in one easy-to-use platform.
- Capital City
Amsterdam
- Currency
Euro (€, EUR)
- Languages
Dutch (official language), Frisian (official language in Frisia), and English
- Population size
17,593,030
- Remote-Owned Local Entity
Facts & Stats
- Capital City
Amsterdam
- Currency
Euro (€, EUR)
- Languages
Dutch (official language), Frisian (official language in Frisia), and English
- Population size
17,593,030
- Ease of doing business
Very easy
- Cost of living index
$$$$ (15 of 139 nations)
- Payroll frequency
Monthly
- VAT - standard rate
21%
- GDP - real growth rate
3,77% (2021 est.)
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 Netherlands with Remote
Looking to employ workers in Netherlands? Companies hiring in Netherlands must either own a legal entity in the country or work with a global employment solutions provider, usually one that provides employer of record services.
Remote can employ your team in Netherlands on your behalf through our local legal entity in the country and handle payroll, benefits, taxes, and compliance for your Netherlands team. You can also pay contractors now in Netherlands with Remote.
Risks of misclassification
Netherlands, like many other countries, treats self-employed individuals or contractors and full-time employees differently. Misclassification of contractors in Netherlands may lead to fines and penalties for the offending company.
Employing in 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.
Minimum Wage
As of January 2024, the Netherlands minimum wage is EUR 13.27 per hour for adults 21 years and older.
Payroll Cycle
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.
Onboarding Time
We can help you get a new employee started in the Netherlands fast. The minimum onboarding time we need is only 3 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.
11 Public holidays
Competitive benefits package in the Netherlands
Remote supports our clients by offering competitive benefits packages that will help you attract and retain the best talent across the globe! Our benefits specialists have done the research on norms and requirements in each local market and have crafted packages that will allow your employees to thrive, no matter what country they live in.
Our benefits packages in the Netherlands are tailored to fulfil the local needs of your employees. Typically, our packages contain some or all of the following benefits:
Health Insurance
Dental Insurance
Vision Insurance
Mental Health Support
Pension or 401(K)
Life and Disability Insurance
Local market insights
In the Netherlands, 50%* of employers offer supplemental health insurance to their workforce. (*based on 3rd-party market research from our partners)
The country has a robust public health system, and while supplemental health insurance is not required, it provides employees with access to a wider range of options for providers and specialists, as well as shorter wait times. Our plans also offer global coverage (excluding the US) to protect your employees when they are traveling outside their home country.
Our core benefits (which often include things like healthcare) are required in most countries where we hire. We do not require customers to offer benefits in the Netherlands due to its strong public system and local laws that protect us (and you!) against claims of non-discriminatory hiring practices. However, we do recommend that employers in the Netherlands offer benefits to their employees based on market standards. Note that we do not add a markup on any benefits premiums or administration costs.
If you'd like specific information about our benefits packages in the Netherlands, start onboarding your first employee with Remote today.
For more insight into fair equity and benefits best practices, download our Global Benefits Guide and share with the rest of your hiring team.
Taxes in Netherlands
Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in Netherlands.
8%
Vakantiegeld (Holiday Allowance).
€29 EUR - Long term sickness insurance.
15.20%
Mandatory Occupational Pension Scheme on a maximum of €128,810 EUR of taxable base salary.
0.50% - Kinderopvangtoeslag (Childcare Contribution) on a maximum of €66,956 EUR of taxable base salary.
2.64%
Algemeen Werkloosheidsfonds, AWf (Unemployment Insurance) on a maximum of €66,956 EUR of taxable base salary.
5.82% - Arbeidsongeschiktheidsfonds, Aof (Disability insurance contribution) on a maximum of €66,956 EUR of taxable base.
1.53%
Whk gediff (Work Resumption Premium) on a maximum of €66,956 EUR of taxable base salary.
0.50%
Uniforme opslag kinderopvang (Uniform Childcare Allowance) on a maximum of €59,706 EUR of taxable base.
Types of leave
All full-time workers are legally entitled to 20 days paid annual leave. 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.
Employment termination
Termination process
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.
Notice period
The statutory notice period for an employer depends on the duration of employment, with a maximum of 4 months.
Probation periods
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. Fixed-term contract which lasts less than six months cannot contain a probation period.