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What is the Average Salary in the Netherlands?
As of 2025, the average gross salary in the Netherlands is about €3,666 per month, which is approximately €44,000 per year. Converted to USD (using approximate rates in mid-2025), this is roughly US$47,000 to US$50,000 annually. Income in the Netherlands varies substantially by role, experience, education, and city. Jobs in Amsterdam or Utrecht for example, usually see higher pay than more rural provinces.
Comparative Profession Salary Earnings in the Netherlands
Here’s a general breakdown of monthly and annual salary ranges in the Netherlands:
Source: Data compiled from Dutch Central Planning Bureau (CPB), DutchReview, WageCentre, Glassdoor, Tech-Careers.
Note: USD conversion based on approximate exchange rate (EUR to USD ~1.10-1.15 in 2025; may vary)
In the Netherlands, the minimum wage is set nationally and adjusted twice a year (1 January & 1 July) for all workers aged 21 and older. As of 1 July 2025, the statutory gross hourly minimum wage for this age group is €14.40, while younger workers (ages 15-20) have graduated hourly rates based on age.
Industry-Specific Salary Earnings in the Netherlands
Salaries in the Netherlands differ quite a lot depending on the industry. Sectors like tech, finance, healthcare, engineering tend to pay above average; sectors such as retail, hospitality, and parts of services tend to be below average. Here are some common professions with their typical earnings:
Note: USD conversion approximate as above.
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Labor Market Overview
The Netherlands labor market remains strong, with an unemployment rate around 3.8-4.0% in mid-2025. The services sector dominates employment (administrative support, health & social work, professional and scientific services), followed by industry and construction.
There are ongoing labour shortages in certain technical, administrative, and engineering roles. While many people work part-time (especially among women), full-time professionals in in-demand industries enjoy upward pressure on wages.
Regional differences remain significant: cities like Amsterdam, The Hague, Utrecht, and Eindhoven tend to offer higher salaries and greater competition for talent.
Benefits of Hiring Employees in the Netherlands
Hiring in the Netherlands offers multiple advantages. Its strong legal protections, skilled workforce, and predictable regulatory environment make it attractive to companies across the world. Here are some of the key benefits that international companies can look forward to when hiring talent from the Netherlands:
- High Skills and Education Levels: Approximately 36% of the Dutch workforce holds tertiary education degrees, and many employees are proficient in multiple languages, including fluent English. This combination ensures a highly adaptable and internationally competitive talent pool.
- Strong Infrastructure & Connectivity: The Netherlands is known for its world-class logistics, transport systems, and digital infrastructure. These assets allow businesses to operate efficiently and connect seamlessly with both local and global markets.
- Stable Legal and Business Environment: With transparent regulations, robust labor laws, and comprehensive social benefits, the Netherlands provides a secure and predictable environment for businesses to operate in.
- Competitive Compensation Expectations: While salaries in the Netherlands are relatively high compared to some regions, compensation packages often include competitive benefits such as pensions and healthcare coverage. These extras help offset costs and reduce employee turnover.
- Pro-Employee Policies: Dutch labor legislation is widely recognized for being employee-friendly, offering strong protections such as paid leave, parental leave, and clear employment rights. These policies enhance employee satisfaction and retention.
- Innovation Hubs & Tech Ecosystem: Cities such as Amsterdam, Eindhoven, and Delft have become innovation hubs that are incredibly attractive to innovative tech firms, research institutions, and startups . This ecosystem has become a place for collaboration, attracts considerable investment, and produces a steady supply of specialized talent.
- Proximity to Other EU Markets: Strategically located in the heart of Europe, the Netherlands offers easy access to surrounding EU markets. Its excellent connectivity and comprehensive regulatory framework make it an ideal base for companies with regional or international operations.
Factors That Influence Salaries in the Netherlands
The salary landscape in the Netherlands is shaped by a number of key factors. If you’re interested in hiring talent in the country, your company needs to consider to make sure you’re offering competitive compensation packages.
1. Experience & Skill Level
Experience plays a major role in determining salaries in the Netherlands. Entry-level professionals (0–2 years) typically earn at or just above the statutory minimum, while those with a few years of experience see significant pay increases.
For example, entry-level software engineers earn around €58,000/year, while mid-level engineers (3–7 years) average €80,000–€90,000/year. Senior professionals (8+ years) can reach €100,000–€120,000+, particularly in technical fields like IT, engineering, and finance.
This means moving from junior to senior roles can nearly double compensation in high-demand sectors. Employers who create transparent career pathways and link them to salary growth have an advantage in retaining skilled workers in the Netherlands’ competitive job market.
2. Industry Demand
The industry where someone works is one of the strongest predictors of salary levels. Tech, finance, engineering, and healthcare consistently pay above the national average due to talent shortages. Software engineers in Amsterdam for example, earn around €97,700/year on average – more than double the Dutch national average of ~€46,500/year across all professions.
Meanwhile, jobs in education, hospitality, and parts of the public sector pay less than private-sector equivalents, though they often provide strong pensions and job security. For instance, teachers in the public system earn less than tech workers but are covered by collective labour agreements (CAOs) that guarantee steady wage increases and benefits.
Companies in lower-paying industries can remain competitive by offering other perks that specifically appeal to Dutch workers that value work-life balance like flexible schedules, remote work, or additional vacation days
3. Location
Location has a clear influence on salary levels in the Netherlands. Workers in the Randstad region – which includes Amsterdam, Utrecht, The Hague, and Rotterdam – generally earn more than those in other parts of the country. This is due to both the concentration of multinational companies and the higher cost of living in these areas.
Salaries in Randstad cities are typically 10–15% higher than the national average. The national average gross salary is around €44,000/year, but in Amsterdam or Utrecht, many professionals, especially in finance and tech, can expect to earn more. For example, software engineers in Amsterdam report average total compensation around €94,000/year, compared to ~€77,000/year in Groningen, which is about 7% lower than the national average for the same role.
Eindhoven is another standout region, known as the “Brainport” of Europe, with companies like ASML and Philips driving strong demand for engineers and technical specialists. Salaries in this hub also sit above the Dutch average, reflecting the international competition for highly skilled professionals.
4. Educational Background & Certifications
Education and continuous learning are highly valued in the Netherlands. Employees with university or master’s degrees earn significantly more than those without. Certain fields, like engineering, finance, and data science sit in the premium pay bracket.
Sponsoring an employee upskilling program is a a great way addition to any retention strategy which can be a critical advantage in the Netherlands, where skilled professionals are in short supply.
5. Foreign vs. Local Employers
Foreign employers often pay more than local companies, particularly in tech and finance. A foreign tech firm in Amsterdam might offer a developer €75,000/year, while a smaller local firm offers €55,000-€60,000 for the same role. International companies are also more likely to provide bonuses, equity, or global mobility opportunities.
The Netherlands also attracts global talent through its 30% ruling, a tax benefit allowing expats to receive up to 30% of their salary tax-free. This significantly boosts net pay and gives multinationals a recruiting edge.
At the same time, around 75% of Dutch employees are covered by CAOs (collective agreements), which set minimum pay, benefits, and working conditions across many industries. Employers entering the Dutch market must align with these agreements when applicable to remain compliant.
Hiring Trends & Future Salary Outlook in the Netherlands
As the Dutch economy continues to adapt to global shifts and local workforce demands, several hiring and salary trends are shaping the outlook for 2025. From evolving wage growth patterns to increasing demand for specialized talent, employers are navigating a competitive market that rewards flexibility and innovation.
Understanding these developments is essential for businesses looking to attract and retain top talent while maintaining sustainable compensation strategies.
1. Continued Wage Growth but Slower Than Peak Inflation
Salaries in the Netherlands are still rising, with projected growth of 4–6% in 2025, though this pace is slower than during peak inflation years. Employers are turning to creative compensation structures to maintain retention and competitiveness.
- Wages are projected to increase steadily across most sectors in 2025.
- Companies are relying more on performance bonuses and non-cash benefits to keep talent engaged.
2. Demand for Tech & Specialized Skills
Technology remains one of the strongest growth areas, with particularly high demand for software engineers, data scientists, and cybersecurity specialists. Employers are also prioritizing professionals who combine technical expertise with business acumen.
- Strong hiring demand exists for software, AI, cloud, and cybersecurity professionals.
- Cross-functional skill sets (tech + business) command premium compensation.
3. Remote Work & Flexible Contracts
The Dutch labor market continues to embrace flexible work arrangements, with many organizations offering hybrid or fully remote setups. These models allow cost savings for companies and greater work-life balance for employees.
- Hybrid and remote roles enable employers to manage salary differentials across locations.
- Part-time and flexible contracts remain common, especially in industries with labor shortages.
4. Expats and Foreign Talent as Key Resource
Global competition for skilled professionals is driving the Netherlands to strengthen its appeal for international hires. Favorable policies, such as the 30% ruling, make the country attractive for expats.
- Government incentives help attract highly skilled foreign workers.
- Competitive compensation packages are increasingly needed to win global talent.
5. Regional Disparities & Cost of Living Pressures
Compensation levels differ significantly between urban and rural areas in the Netherlands. High living costs in cities like Amsterdam, Utrecht, and The Hague push salaries upward, while smaller cities and rural regions offer lower pay but more affordability.
- Major cities drive higher salary benchmarks due to housing and lifestyle costs.
- Employers outside central hubs often provide relocation support or housing subsidies.
Key Takeaways
Understanding salary trends in the Netherlands is essential for businesses looking to attract top talent and for professionals seeking fair compensation. To make well-informed decisions as a hiring manager, consider industry benchmarks, location, experience, and cost-of-living factors. Look for free resources such as Playroll's salary benchmarking tool and employee cost calculator to easily benchmark your offering across the globe.
If you're planning to hire in the Netherlands, make sure to offer competitive salaries, provide benefits that match industry standards, and stay updated on local labor laws to ensure a smooth and successful hiring process.
Want to simplify the process of hiring in the Netherlands? Playroll offers leading EOR services to make global hiring a breeze – let us handle legal employment, compliance, payroll and benefits management, so you freely explore new markets and focus on team growth. Book a chat with our team to find out how we can help scale your team in the Netherlands in 2025.
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