Easily manage employment in Netherlands

Payroll services in the Netherlands

The Netherlands has a strong economy with key industries in technology, logistics, and finance. With specific labour laws and tax regulations, employers in the Netherlands must ensure compliance with local payroll requirements, including social security contributions, employment contracts, and tax obligations. Understanding these regulations is essential for smooth payroll operations and legal compliance.

Payroll breakdown in the Netherlands

Employers in the Netherlands must adhere to national payroll regulations regarding wages, taxes, and social contributions. Below is an overview of key payroll components:

Minimum wage and working hours

• Minimum wage: The Netherlands’ minimum wage is EUR 1,995 per month for employees aged 21 and older.
• Payroll frequency: Salaries are generally paid monthly.
• Standard working hours: The normal workweek in the Netherlands is 40 hours, typically spread over five days.
• Overtime: Employees are entitled to additional pay for overtime work, typically based on employment contracts and collective agreements.

Taxation and social security contributions

• Personal income tax: The Netherlands has a progressive income tax system with rates ranging from 9.42% to 49.50% depending on income levels.
• Employer contributions:
• Social security: Approximately 18% to 23% of the gross pay.
• Employee contributions:
• Social security: Approximately 27.65% of the gross pay.
• Corporate tax: The corporate income tax rate in the Netherlands is 15% for income up to EUR 200,000 and 25.8% for income exceeding that amount.
• Tax reporting: Employers must file payroll taxes and contributions with the Dutch Tax and Customs Administration (Belastingdienst) regularly.

Payroll compliance in Netherlands

• Employment contracts must be provided in writing and specify terms such as pay, working hours, and job responsibilities.
• Payroll deductions: Employers must ensure accurate deductions for social security and income tax.
• Employers must stay updated on changes to the Netherlands’ labour laws and tax regulations to avoid penalties.

Run payroll in the Netherlands with Remote

Managing payroll in the Netherlands requires careful attention to tax regulations, employment laws, and social security requirements. Employers must stay informed about tax rates, wage laws, and reporting deadlines to ensure smooth payroll processing and avoid penalties.

The good news is, you can pay anyone, anywhere — from your team in the office to your team abroad, all with Remote Payroll. To see just how easy global payroll can be with Remote, book a demo today.