Hire in Netherlands
Netherlands PEO &
Employer of Record
Hire & manage teams 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)
Payroll tax
13.46% - 25.72%
Payroll Cycle
Monthly
Time zone
UTC +2
Capital city
Amsterdam
Hire Employees in Netherlands
NNRoad provides employer of record (EOR) & professional employment organization (PEO) services to ensure that your business in Netherlands complies with local labor laws and regulations. We process monthly payroll and act as the Employer of Record, taking on all local employer liabilities.
The NNRoad Advantage ☺
Pay as you go
No set-up or overhead costs to global expansion.
Global account manager
One point of contact for all of our 50+ serviced countries and regions.
Compliance
Ensured compliant contracts and operations.
Fast Onboarding
Start working with your remote employees/contractors within a week.
Foreigner Visas
NNRoad assists with overseas foreign hires visa needs.
Platform
Access your payroll reports and employee pay stubs on our portal.
Employer of Record 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.
01.
Candidate Selection
You interviews & select the candidates you want to hire in Netherlands.
02.
Employee Onboarding
We sign a local labor contract with your employees based in Netherlands.
03.
Compliance & Payroll
We manage monthly payroll, mandatory benefits & all HR compliance in Netherlands.
04.
Payroll Reporting
See all payroll reports on our platform & focus on your business in Netherlands.
Recruiting process outsourcing – including but not limited to resume screening, shortlisting candidates, coordination for interviews, and assistance for salary negotiation.
Hiring and termination of employees/local labor contracts (contract administration – engagement, extension termination and conversion to permanent hire).
On-boarding and off-boarding employees following labor law practice.
Complete payroll solution and benefit administration
Employee management – employee record retaining, time keeping, bonus and allowance management, expense and claims, and leave employee database management accordingly to the local law.
Mandatory insurance compliance (i.e. pension, labor and health insurance) according to the local labor laws.
Payment management (Invoicing customers/clients and vendor payments).
Work VISA application assistance, if needed.
Local individual income tax reporting.
Payroll & PEO in Netherlands
Professional Employment Organization (PEO) services are for companies who have a legal entity in Netherlands, and want to outsource their payroll. Employment liabilities are shared between your organization and NNRoad.
01.
Compliance & Payroll
We manage monthly payroll, mandatory benefits & all HR compliance in Netherlands.
02.
Payroll Reporting
See all payroll reports on our platform & focus on your business in Netherlands.
Registering the necessary company and personnel information for payroll calculation in the payroll software and system
Monthly Payroll Processing
Year-End Adjustment and Annual Declaration
Taxes & Payroll in 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.
There are a few exceptions to this rule, however. If you are considered a non-resident for tax purposes, you will only be taxed on your Dutch-source income. And if you are a resident but have your permanent home (“domicile”) outside of the Netherlands, you may be exempt from taxation on your foreign-source income.
Tax Brackets
9.42%: 0 – 35,472 EUR
37.07%: 35,472 – 69,398 EUR
49.50%: Over 69,398 EUR
37.07%: 35,472 – 69,398 EUR
49.50%: Over 69,398 EUR
Sample Calculation
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
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 in Netherlands
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.
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%
Benefits & Insurance in Netherlands
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.
Working Hours in Netherlands
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.
Termination Laws in Netherlands
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 in Netherlands
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.
Types of Leaves in Netherlands
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.
Public Holidays in Netherlands
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
Resources
What Are The Work Benefits In The Netherlands?
July 28, 2023
Complete Guide: Payroll in The Netherlands 2023
October 13, 2022
