* Playroll continues to analyse immediate opportunities and fulfilled roles by recruitment partners, contractors and employers to identify in-demand jobs.

Capital City

Euro (€)


CET (GMT +1)

Employment Cost


Annual Leave

20 days

In-demand Specialties*
Education, Specialised Medical Professionals, Customer Service

The Ultimate Guide to Hiring Employees in The Netherlands

Simplify hiring employees in by partnering with Playroll. Our Employer of Record (EOR) handles hiring, onboarding, payroll, taxes, immigration, benefits administration, and compliance. While you maintain control of day-to-day tasks and responsibilities.

hiring-in-The Netherlands-guide

Key Considerations Before Hiring In The Netherlands

Employing in The Netherlands requires employers to own a legal entity in the country and manage payroll, tax, benefits and compliance through their own in-country resources. Grow your team in The Netherlands with our Employer of Record solution, ensuring streamlined, compliant business expansion with no entity.

Playroll allows you to hire employee's in The Netherlands quickly, easily and we even automate tax document collection, benefits, payroll and more.

Good To Know

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.


Fundamental Aspects of Employment in The Netherlands

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:

  • Identification and details of both parties
  • Job title and job description
  • Starting date (and duration for temporary contracts)
  • Base salary and payment terms, including: compensation, benefits, and pension schemes (if applicable)
  • Daily or weekly working hours
  • Leave entitlements and number of holidays
  • Probation period
  • Notice for employment termination
  • Collective labour agreements
  • Non-competition clause (if applicable)

Probationary Period in The Netherlands

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.

Working hours in The Netherlands

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.

Overtime in The Netherlands

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.

Navigating Key Aspects of Payroll in The Netherlands

Holland has a robust and complex payroll and tax system, and as an employer, it pays to understand payroll process basics.

1 January - 31 December

Fiscal Year in The Netherlands

1 January - 31 December is the 12-month accounting period that businesses in The Netherlands use for financial and tax reporting purposes.

Payroll Cycle in The Netherlands

The payroll cycle in The Netherlands is usually monthly, with employees being paid at the end of each month.
12.09 EUR p/h

Minimum Wage in The Netherlands

The minimum wage for employees in The Netherlands is typically 12.09 EUR per hour, amounting to ~1,934.40 EUR per month for a typical 40 hour work week.

Minimum wages and salaries in The Netherlands

Minimum wages in the Netherlands vary according to age. Individuals aged 21 and above receive a monthly minimum wage of 1,934.40 EUR; whereas those starting work at the age of 15 earn around 526.85 EUR per month.

Bonus Payments in The Netherlands

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.

Comprehensive Overview of Employment Taxes in The Netherlands

Understanding the tax obligations for both employers and employees is crucial when operating in The Netherlands's business landscape. This section explains how taxes and statutory fees affect payroll and individual earnings in The Netherlands.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 23.49%-33.29% on top of the employee salary in The Netherlands.

Tax Rate Tax Type

Employee Payroll Tax Contributions

In The Netherlands, the typical estimation for employee payroll contributions cost is around in the Netherlands, an employee's social security contributions are included in income tax deductions..

Tax Rate Tax Type

Individual Payroll Tax Contributions

The individual tax rate in the Netherlands is calculated based on progressive rates and can vary from 37.07% to 49.50%.

Tax Rate Income Bracket

Pension in The Netherlands

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.

Easily navigate payroll, taxes and contributions with Playroll.

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Understanding the Protocols for Termination of Employment in The Netherlands

When it comes to terminating employment in The Netherlands, understanding the legal obligations regarding severance pay and contributions is essential. Below is a detailed overview of the key considerations for both employers and employees.

Termination Process

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:

  • Redundancy due to economic circumstances
  • Long-term disability (lasting two years)
  • Frequent absence due to illness or disability affecting the ability to carry out job duties
  • Underperformance
  • Misconduct
  • Refusal to fulfill contractual duties based on conscientious or religious objections
  • A disturbed relationship

Notice Period

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:

  • Less than 5 years: 1 month notice
  • Between 5-10 years: 2 months’ notice
  • Between 10-15 years: 3 months’ notice
  • More than 15 years: 4 months’ notice

Severance Pay

Statutory severance payment is due when the employment agreement is terminated and is determined based on the following:

  • The employee’s length of service, usually equivalent to 2-6 months of salary or more, depending on the strength of the case.
  • If the UWV is concerned, the statutory severance amounts to one third of one month’s salary, covering the holiday allowance, fixed end-of-year bonus (if any), and/or the average bonus of the last 3 years and/or commission of the last 12 months; for each calendar year of the employment agreement.

Annual Leave Entitlements and Company Policies in The Netherlands

The annual leave entitlement in The Netherlands is 20 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays in The Netherlands

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:

Holiday Date

Paid Time Off in The Netherlands

Maternity Leave in The Netherlands

Paternity Leave in The Netherlands

Sick Leave in The Netherlands

Adoption Leave

Care Leave

Parental Leave In The Netherlands

The Netherlands's Benefits Built Into Playroll

Competitive benefits package in The Netherlands

Playroll is committed to providing tailored, competitive benefits packages that are designed not only to attract but also retain top talent worldwide. Our global team of benefits experts build custom local packages to ensure your employees in The Netherlands's needs are met. Typically our packages contain some or all of the following benefits.

Health Insurance
Pension or 401k
Life and Disability Insurance
Vision Insurance
Dental Insurance
Discounts & Perks

Playroll Supplementary Benefits For Employment In The Netherlands

Make your benefits package in The Netherlands a talent magnet with Playroll's local plans. We offer benefits that are compliant, comprehensive, and flexible — all at competitive rates. Speak with our local territory experts to explore the localized benefits we can offer you, while you scale your team.

  • Pension
  • Short-Term Sickness Insurance
  • Long-Term/Disability Insurance
  • Death Benefit
  • Background Checks
  • IT Equipment Sourcing

Statutory benefits for employment in The Netherlands

Playroll allows you to provide localized benefits for employees in The Netherlands within minutes. All in one manageable online dashboard. If you'd like specific information about our benefits packages in The Netherlands create an account or contact our global expansion team, today.

Playroll Benefit Services

Playroll's Expertise in Facilitating Work Visas for The Netherlands

At Playroll we're all about empowering employees to work anywhere, making mobility possible for global teams. We sponsor visas and hire the employee for you, so you don’t have to worry about payroll, taxes, and more.

It's important to note, visa support can be complicated. There are many variables that affect whether sponsorship is possible, including one’s nationality, education, marital status, and the immigration policy for the country in question.

Unfortunately, this means we can’t support visas everywhere - with that being said, we handle the entire visa process in-house, and dig into your situation to give you an overview of what to expect if we're able to help with visa sponsorship in The Netherlands.

Playroll Immigration Support

Integrated EOR Platform

Legal and compliance experts are readily available to provide guidance and case-by-case Q&A support.

Accelerated Immigration Timeline

By leveraging dedicated support from in-house legal and compliance experts for case by case questions and more.

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Accelerated Immigration Timeline

Acquiring a visa without an entity has never been easier, leverage Playroll's global coverage to sponsor and hire employees.

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