Hire in Netherlands

Netherlands

PEO &

Employer of Record

Hire employees remotely in Netherlands without a local entity. We handle HR compliance, payroll & taxes so you can focus on your business.

Business Language

Dutch, English

Salary Currency

Euro (EUR)

Capital city

Amsterdam

Time zone

UTC +2

EOR in Netherlands

Hire Employees in Netherlands

NNRoad provides payroll & employer of record (EOR) services in Netherlands to ensure that your business complies with local labor laws and regulations. We process monthly payroll and act as the Employer of Record, taking on all local employer liabilities.

Fast Hiring

Start working with your remote employees in a week.

Foreigner Visas

NNRoad assists with overseas foreign hires visa needs.

Platform

Access your payroll reports on our portal.

Employer of Record (EOR) in Netherlands

Employer of Record (EOR) services are for companies who do not have a legal entity in Netherlands, but who want to hire localy. Employment and full liability are outsourced to NNRoad.

1. Candidate Selection

Select the candidates you want to hire in Netherlands.

2. Employee Onboarding

We sign a local labor contract with your employees based in Netherlands.

3. Compliance & Payroll

We manage monthly payroll, mandatory benefits & all HR compliance in Netherlands.

EOR service includes:

Hiring and termination of employees/local labor contracts (contract administration – engagement, extension termination and conversion to permanent hire).

All mandatory employer (and employee) contributions filed and paid for your EOR employees.

Payroll recording, reporting and administration.

Distribution of salaries to employees through direct deposit into their bank accounts.

Calculation, reporting, filing and processing of EOR employee’s individual income tax due.

Collecting and processing your employee’s invoices for business related expenses.

Guiding and organizing your expat employee’s work visa application too guarantee their successful onboarding.

Standalone Payroll in Netherlands

Payroll services are for companies who have a legal entity in Netherlands, and want to outsource their salary disbursement, mandatory benefits, income tax filing and mandatory reports.
Employer of Record Netherlands PEO

Employer of Record Status in Netherlands

Using an Employer of Record (EOR) to hire employees in the Netherlands is a legally recognized and efficient method for companies to expand their workforce without establishing a local entity. An EOR acts as the legal employer, handling all aspects of employment, including payroll, tax compliance, benefits administration, and ensuring adherence to Dutch labor laws. This setup allows businesses to hire both local and remote employees seamlessly while ensuring full compliance with Dutch regulations, such as the Dutch Civil Code and various industry-specific Collective Labour Agreements (CAOs).

Hiring an Expat with an EOR in Netherlands

For hiring foreign expats, the EOR also manages the necessary work visas and permits, ensuring compliance with immigration laws. This includes handling the application for highly skilled migrant visas and other necessary documentation to legally employ foreign talent in the Netherlands.

Employee Income Taxes:

Individual income tax rates in Netherlands are based on progressive tax brackets.

Residents are subject to Dutch income tax on their worldwide income. This includes any income you earn from overseas sources.

The 30% tax ruling is a tax advantage for highly skilled migrants in the Netherlands. An employer can pay up to 30% of the salary of an expat employee with the 30% ruling free of tax, during the first 5 years of residence in the Netherlands.

Tax Brackets:

Sample Calculation

9.42%: 0 – 35,472 EUR
37.07%: 35,472 – 69,398 EUR
49.50%: Over 69,398 EUR
Yearly income = 50,000 EUR
9.42% * 35,472 = 3,341.46
37.07% * 14,528 = 5,385.52
Total = 3,341.46 + 5,385.52 = 8,727

Yearly income tax = 8,727 EUR

Employer costs and contributions in the Netherlands are among the highest in Europe. The average cost of a pension in the Netherlands is around EUR 1,200 per year, while the average contribution is around EUR 2,400 per year. This means that employer costs and contributions make up a significant proportion of total labour costs.

Despite these high costs, the country has one of the best pension systems in Europe. The Dutch pension system is based on a solid foundation of public and private sector pension funds. These funds provide a safety net for retirees and ensure that they receive a secure income in retirement.

The Dutch government also provides a number of tax breaks for employers who provide their employees with a pension. These tax breaks make it easier for employers to offer a pension to their employees and make the Netherlands an attractive country for businesses.

The 30% tax ruling is a tax advantage for highly skilled migrants in the Netherlands. An employer can pay up to 30% of the salary of an expat employee with the 30% ruling free of tax, during the first 5 years of residence in the Netherlands.

In order to keep costs down, the Dutch government has introduced a number of reforms to the pension system in recent years. These reforms have helped to reduce the cost of pensions and make them more affordable for employers.
Despite these high costs, the Netherlands still has one of the best pension systems in Europe. The Dutch pension system is based on a solid foundation of public and private sector pension funds. These funds provide a safety net for retirees and ensure that they receive a secure income in retirement.

The Dutch government also provides a number of tax breaks for employers who provide their employees with a pension.

Employer Contribution

2.70% – 7.70% – Unemployment insurance
7.03% – Health insurance
0.50% – Child Care Premium
7% – Health Care Act
Total employment cost: 22.23%

Employee Contribution

17.90% – Old Age Pension (AOW)
0.10% – Orphans and widow/widower pension (ANW)
9.65% – Long Term Care (WLZ)
Total employee cost: 27.65%

There are a number of popular benefits and insurance programs in the Netherlands. These include health insurance, unemployment insurance, and disability insurance.

Healthcare Insurance

Health insurance is mandatory for all residents. Popular health insurers include Zilveren Kruis, Achmea, Menzis, and VGZ.

Unemployment Insurance

Unemployment insurance is also mandatory for all residents. The most popular unemployment insurer is UWV. Disability insurance is not mandatory, but is often offered by employers as an employee benefit. The most popular disability insurer in the Netherlands is SVB.

In addition to these popular benefits and insurance programs, there are a number of other less well-known programs that can be of assistance to resident. These include housing allowance, childcare allowance, and study finance. For more information on these and other programs, please visit the website of the Dutch government.

Social security has two parts. The national insurance scheme (volksverzekeringen) and the employee insurance scheme (werknemersverzekeringen).

The national insurance schemes are:

Pension Fund

All inhabitants of the Netherlands are insured for a surviving dependents’ pension based on the Surviving Dependents Act (ANW). The insured gross amount on an annual basis is €16,201. However, entitlement to this benefit depends on specific criteria.

Surviving Dependents Act

According to the General Old Age Pensions Act, all Dutch citizens are entitled to a state pension (AOW). The amount of this pension is determined by how long you lived in the Netherlands before attaining state retirement age.

Long Term Care Act

Residents who require a great deal of care or help on a daily basis, such as due to mental or physical disabilities, may be eligible for treatment under the Dutch Long-Term Care Act (Wlz).

Child Support

Child benefit is a payment made to residents to assist them with the costs of raising a child.

Work And Income Act

After 104 weeks of disability, the WIA gives a payment to disabled employees under the age of 66 and 4 months who have a salary loss of at least 35 percent for (all forms of) approved employment.

Netherlands Individual Income Tax guide

Working Hours Per Week

In the Netherlands, an average workweek is 36-40 hours long, with maximum working hours of 12 hours per day and 60 hours per week. Overtime is typically compensated at a rate of 1.5 times the regular hourly wage.

Overtime

Working lengthy hours of overtime is not as common in the Netherlands as it is in other nations. Whether or not you are compensated for overtime hours worked is determined by the terms of your employment contract. Some employers will indicate in the contract that (a specific amount of) overtime labor is part of the job and is covered by regular salary, while others will offer monetary compensation or time off in exchange for any additional hours worked.

Dismissing employees requires a valid reason. Refusal to do work, culpable behavior, excessive sick leave, reorganization, or corporate closure are all valid reasons.

Severance

If an employee’s employment is terminated on the employer’s initiative after the implementation of the Balanced Labour Market Act on 1 January 2020, the employee is entitled to a transition payment from day one. If an employee’s employment contract ends or is not renewed due to the employer’s significantly liable actions, the employee is also entitled to a transition payment.

For each year that the employment contract has lasted, the transition payment is equal to one-third of the salary per month and a proportional part thereof for a period that the employment contract has lasted less than one year.

Notice Period

The statutory notice period is one month, but this varies based on the employee’s length of service:

1-month notice if less than 5 years
2 months notice if between 5 and 10 years
3 months notice if between 10 and 15 years
4 months notice for more than 15 years

Employment Contract

An employment contract (arbeidscontract) is a contract between an employee and his or her employer that specifies the working conditions.

There are two types of work contracts: temporary and permanent.

Contracts can be agreed upon in writing or orally. We suggest always concluding a contract in written form.

As an employer, you must give your employees a contract that contains the details of their employment like the location of the job, the employee’s job details, working hours and salary, term of the contract, probation period, holidays, notice period.

Probation Period

The duration of a probation period depends on the duration of the employment contract. However, it may never exceed a 2 month period.

Annual Leave

For a Monday-Friday job, employees normally have 4 weeks (20 working days) of vacation leave. If the annual salary is less than three times the yearly equivalent statutory minimum wage, employers must also pay a holiday allowance of 8% of the annual salary. This is a type of required bonus that is unrelated to the salary earned during the time off.

Sick Leave

Sick leave can last up to two years and is compensated at 70% of the employee’s pay. Most employees are bound by additional employee-friendly conditions in their contracts or Collective Labour Agreements.

Maternity Leave

Maternity leave is strictly regulated. Employees who are pregnant are entitled to 16 weeks of paid maternity leave (6 weeks before and 10 weeks after the birth), which is paid by the Employee Insurance Agency and is capped at the daily statutory minimum pay.

Paternity Leave

After the birth of a child, partners of an employee are entitled to one week of paid paternity leave. This paid leave can be taken at any moment during the first four weeks following the child’s birth. Partners have the right to 5 weeks unpaid leave in the first 6 months after the birth of a child.

The Netherlands celebrates a number of holidays throughout the year. Some of the most popular holidays include Christmas, New Year’s Eve, Easter and Pentecost.

On Christmas Day, many Dutch families gather together to celebrate. presents are exchanged and a traditional meal is enjoyed. New Year’s Eve is also a time for family and friends to get together. A common tradition is to stay up until midnight to watch the fireworks and then eat twelve grapes, one for each stroke of midnight.

Easter is another important holiday. It is celebrated with a special meal on Easter Sunday, which typically includes ham, lamb or beef as the main dish. On Easter Monday, many people take part in an egg-rolling contest.

Public Holidays

  • New Year’s Day – January 1st
  • Good Friday – April 15th
  • Easter – April 17-18
  • King’s Day – April 27th
  • Ascension Day – May 26th
  • Whit Pentecost – June 5-6
  • Christmas Day – December 25-26
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