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* Playroll continues to analyse immediate opportunities and fulfilled roles by recruitment partners, contractors and employers to identify in-demand jobs.
The Dutch economy is stable and among the fastest-growing in Europe; ranking sixth despite being smaller in size than other European countries. According to Bloomberg's 2021 Innovation Index, the Netherlands is the ninth most innovative country globally.
The government actively promotes business growth by simplifying bureaucracy, offering tax incentives, and updating public policies. Employees receive an extra 8% vacation pay on top of their salary, and new expats may qualify for a 30% tax break, making the country attractive to expatriates.
Dutch workers have diverse skills, specifically in business and technology, with a high proficiency in English. The country has embraced highly skilled immigrants, becoming a global financial hub and potential start-up capital.
With a strong infrastructure and reliable internet connectivity, the Netherlands supports high-quality remote work. Its flourishing technology sector makes it a desirable location for businesses in need of technologically-skilled employees.
While written employment contracts are not obligatory for legal validity in the Netherlands, it is advisable for employers to provide essential details about the job to their employees within the initial month. In accordance with Dutch Civil Code, employers are required to communicate the following information to the employee:
In the Netherlands, probationary periods are common but not required. They are determined by collective agreements and individual contracts. Dutch law allows for a maximum probationary period of 2 months for permanent contracts and 1 month for fixed-term contracts lasting 6 months to 2 years. Contracts shorter than 6 months may not include a probationary period. During this time, the employer can terminate the contract without notice.
The standard workweek is 40 hours, usually divided into 8 hours per day (with a maximum of 12 hours) over 5 days (Monday to Friday). Those under 18 are required to work a maximum of 8 hours per day.
Employees doing overtime are required to receive compensation for extra hours taken, as specified by their employment contract, which also outlines the maximum allowable hours for overtime. Although the Dutch employment law does not indicate a specific overtime payment rate, many employers establish rates at either 50% or 100% of the regular pay for overtime work.
Minimum wages in the Netherlands vary according to age. Individuals aged 21 and above receive a monthly minimum wage of 2,317.83 EUR; whereas those starting work at the age of 15 earn around 3.98 EUR per hour (translating to approximately 695.17 EUR per month).
It is customary practice in the Netherlands to pay the 13th month salary in November or December. This is outlined in the employee's contract or collective agreements.
The individual tax rate in the Netherlands is calculated based on progressive rates and can vary from 37.07% to 49.50%.
The retirement age in the Netherlands is currently 66 years and 7 months, but is scheduled to increase in upcoming years according to life expectancy. Employees insured for 50 years are eligible to receive full government pension (AOW), which is paid monthly and adjusted twice a year based on wage inflation. Employees can also choose supplementary pension plans, known as the Second Pillar Pension, with about 90% of employers offering to provide extra financial support alongside AOW.
The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in The Netherlands tailored to your needs.
An employer in the Netherlands has the authority to terminate an employment agreement with a valid reason, as specified in both the employment agreement and any collective agreement in place with the employee. However, unilateral termination without involving the Employee Insurance Agency (UWV) is not permissible, particularly in cases related to economic reasons or long-term disabilities. According to Dutch law, valid reasons for termination include:
In the Netherlands, when termination occurs through mutual agreement, securing the employee's consent involves following notice periods. These periods take place at the end of the month and are based on the employee's length of service:
Statutory severance payment is due when the employment agreement is terminated and is determined based on the following:
The Netherlands has 11 public holidays, which are not part of the minimum paid leave entitlement. Nevertheless, employers typically grant their employees time off on these public holidays. The following are the nationally recognised holidays in the Netherlands:
In the Netherlands, there are two essential social insurance schemes: the mandatory Employee Insurance, which offers job-related benefits for all employees, and the compulsory National Insurance, which provides social benefits for residents in the country. Employed residents and their families benefit from the comprehensive Dutch social system, which includes:
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