The Netherlands is a country in northwestern Europe bordered by Germany and Belgium. The word “Netherlands” literally means "lower countries", in reference to the country’s low elevation and flat topography. The Netherlands ranks among the highest in the world for press freedom, economic freedom, human development, quality of life, and happiness.
Pregnant employees are entitled to 16 weeks of maternity leave, of which 4-6 weeks are taken before the due date, and at least 10 weeks are taken after the birth. The father or partner is entitled to 1 week of paid paternity leave after the baby is born.
Employees with children under the age of 8 can take unpaid parental leave up to 5 weeks (with an option to claim benefits from social insurance).
There is no specific maximum number of sick days that can be taken, and employees are entitled to wages paid by the employer at 70% of the regular salary rate while they are sick.
The Netherlands has 11 public holidays, and employees are entitled to at least 20 days of paid time off each year. Employees might also qualify for other types of leaves such as short-term care, adoption, and bereavement.
The minimum wage is EUR 1,756.20 per month for employees over the age of 21. The standard workweek is 40 hours at 8 hours per day, and should not exceed 45 hours. Overtime hours and pay are regulated by the employment contract or collective agreement.
The termination process for employment contracts depends on any Employment Agreement or Collective Agreement in place, and the reason for termination. Terminations due to economic reasons or long-term disability cannot occur without involving the Employee Insurance Agency (UWV).
The notice period required for terminations varies based on the length of employment:
Severance pay is referred to as a transition payment and is usually stipulated in the employment contract. Employees are usually entitled to a payment calculated as 1/3 of the regular salary per year of employment (up to a maximum of EUR 84,000).
It's common for companies in the Netherlands to pay their employees a 13th month allowance in November or December of each year. The percentage is the same for all employees in the company and usually equals about 8.33% of the base salary.
★ 13.83% - Pension and Health Insurance
★ 3.97% - Unemployment Fund
★ 4.28% - Disability Insurance
★ 2.5% - Child Care Premium
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You've sourced a full-time employee or contractor located in a country where your company is not incorporated.
Pass us the details of your candidate and we will let you know exactly what it costs to employ your candidate in that country.
Sit back and relax as we onboard your new team member and take care of all the local compliances and admin work.
It can be prohibitively expensive to establish an entity in every country you want to hire talent in, so Remofirst will hire and pay your employee on your behalf while you manage their daily duties. Remofirst will handle formal HR procedures and employment contracts that adhere to local laws, so that you can simply approve invoices via our platform. When you work with an Employer of Record (EOR) you can compliantly hire the best employees around the world.
Unlike full-time employees, contractors work on projects with multiple companies at a given time and are technically self-employed. Full-time employees are solely focused on their employer and usually receive benefits (such as health insurance, equity or stock options, and time off) as an additional form of compensation. While it can be cheaper to work with international contractors instead of paying benefits to a full-time employee, you run the risk of misclassification. It's recommended to work with an EOR for contractor onboarding and payments, so you can know that your international contractors are paid compliantly and on time.