Exclusive Webinar - Paying global teams: Strategic compensation and compliant payroll
Save your spot
Speed up your global expansion! Expand smartly in 150+ countries with the #1 rated EOR globally.
Explore Multiplier EOR
Book a demo
Exclusive Webinar - Paying global teams: Strategic compensation and compliant payroll
Save your spot
Speed up your global expansion! Expand smartly in 150+ countries with the #1 rated EOR globally.
Explore Multiplier EOR
Your guide to the employment landscape, working customs and local labor laws in Netherlands
Capital
Amsterdam
Currency
Euro (EUR)
Languages
Dutch(Official), Frisian, English, Papiamento, Dutch Low Saxon, Lumbergish
GDP per Capita
$61,991.97
Employer Tax
18.69% - 23.69%
Payroll Frequency
Monthly
The Netherlands holds a score of 79.5 in the economic freedom score, and therefore, the country holds the rank of 8th most free country in the 2022 Index. The major contributions to the GDP of the country are agriculture, industrialization, and the service sector. The Netherlands also holds the 5th rank in the European region out of 45 countries, in terms of GDP per capita.
Major economic hubs:
Amsterdam, Groningen, Eindhoven and Utrecht
Skills in demand:
Local: 1
World: 124
Local: 2
World: 125
Local: 3
World: 132
Local: 4
World: 137
Local: 5
World: 143
Some common jobs in the Netherlands and their corresponding salary information are listed below:
| Job Title | Average Monthly Salary (EUR) | Average Monthly Salary (USD) |
| Finance Manager | 9,560 | 10,648 |
| Supply Chain Manager | 8,880 | 9,891 |
| HR Manager | 7,200 | 8,020 |
| Data Analyst | 4,470 | 4,979 |
| Developer | 4,560 | 5,079 |
| Customer Service Representative | 1,890 | 2,105 |
While onboarding any individual from the Netherlands, the employer must know about the Labor laws, employment terms, deductions, and benefits. This section has all the necessary information that employers can use.
Employee Contracts may be in Dutch or in any other language that the employer and employee may be able to understand. The contract should mention all the necessary conditions with leaves, working hours, benefits, and allowances to be provided to the employee.
The probation policy for newly hired Dutch employees is up to 2 months.
| Date | Name | Type |
| 1 Jan | New Year’s Day | Public Holiday |
| 29 Mar | Good Friday | Public Holiday |
| 31 Mar | Easter Sunday | Public Holiday |
| 1 Apr | Easter Monday | Public Holiday |
| 27 Apr | King’s Birthday | Public Holiday |
| 5 May | Liberation Day | Public Sector |
| 9 May | Ascension Day | Public Holiday |
| 19 May | Whit Sunday | Public Holiday |
| 20 May | Whit Monday | Public Holiday |
| 25 Dec | Christmas Day | Public Holiday |
| 26 Dec | Second Day of Christmas | Public Holiday |
| Type of Leave | Time Period | Mandatory |
| Annual/Earned Leave | 20 days | Yes |
| Sick Leave | 730 days | Yes |
| Maternity Leave | 16 weeks | Yes |
Leave Compliance
Payroll cycle
The monthly salary must legally be paid before the end of the following month.
When there is a collective labor agreement in place, a different payment deadline might be agreed upon.
Minimum wage
From January 2024, only minimum hourly wages are published. There are no longer fixed minimum monthly, weekly and daily wages. The current minimum wages are as follows:
Read more
Overtime pay
Overtime can be paid by the employer in three different ways:
Read more
| Category | Contribution | Maximum (EUR) |
| Unemployment Insurance (WW) | 2.94%-7.94% | 2.94 is for the indefinite duration of employment |
| Health Insurance | 6.68% | Up to EUR 66,956 |
| Child Care Premium | 5% | – |
| Disability Act (WIA & Whk) | 8.55% | 407.77 |
| Category | Contribution | Maximum (EUR) |
| Old Age Pension(AOW) | 17.9% | 517.7875 |
| Orphans and widow/widower pension(ANW) | 0.1% | 2.8925 |
| Long Term Care(Wlz) | 9.65% | 279.1425 |
| Taxable income (EUR) | Tax on column 1 (EUR) | Tax on excess (%) | |
| Over (column 1) | Not over | ||
| 0 | 37,149 | 9.28 | |
| 37,149 | 73,031 | 3,447 | 36.93 |
| 73,031 | And more | 13,251 | 36.93 |
*Note: the tax rate of box 2 will be adjusted by 2024, by introducing two new brackets: a basic rate of 24.5% for the first 67.000 euros in income per person and a rate of 31% for the remainder.
The Standard VAT in the Netherlands is 21%.
The 13th-month pay is customary in the Netherlands.
Dismissal by mutual consent is only valid if it is recorded in a written termination agreement (settlement agreement).
The employee has 14 days to reconsider the dismissal by mutual consent. If he fails to do so, the reconsideration period will be automatically extended to 21 days.
On the other hand, terminating an employee on reasonable grounds will have to be consented to and agreed upon by the employee. Employers will then be required to pay a transition payment.
Dutch employees that are still under their probationary period are given a notice period of up to 30 days. For employees outside probation, they are given up to 4 months of notice period.
1/3 of the gross monthly wage per year from the first day of employment.
The maximum amount is €83,000.
In order to work in the Netherlands, the individual may either apply for a residence permit or a work permit.
Read more
Expand globally and hire talent in 150+ countries without having to set up an entity. Use Multiplier's Employer of Record to manage the complete employee experience while having the flexibility to enter new markets.
Overtime Pay
Minimum Wage
| Gross minimum wage (EUR) as of January 1, 2024 | |
| Age | Per hour |
| 21 and older | 13.27 |
| 20 | 10.62 |
| 19 | 7.96 |
| 18 | 6.64 |
| 17 | 5.24 |
| 16 | 4.58 |
| 15 | 3.98 |
Overtime Pay
Pay overtime in the form of extra pay. In that case, tax must also be paid on this. This is because overtime is taxed in the same tax bracket as normal working hours. In the Netherlands, this is between 37.10% and 49.50% depending on how high the income is.
The overtime paid can therefore cause your employee to end up in a higher tax bracket. When this happens, only the compensation for the overtime falls into the higher tax bracket and he will therefore have to remit more of it.
Visa and Immigration
By use case
By team
By company size
Netherlands
