Min. wage
(x12 payments)
Employer tax
~17-20% (+ 8% vakantiegeld ≈ 25-26% total)
Understand employer tax
Annual leave
Notice period
1-4 months (by tenure)
Termination and notice info
Updated
Sep 2026

Employer of Record (EOR) in

Netherlands

Ready to employ talent in Netherlands?
Here's what you need to know about their employment laws, taxes, termination rules, and more. And many companies choose to work with an Employer of Record in Netherlands to stay compliant from day one.
Language(s)
Dutch
Currency
EUR
Capital
Amsterdam
People team
Population
18.2 M
Time Off
Public holidays
11
Legal
VAT
21%

Contract Types

Here's what you need to know about their employment laws, taxes, termination rules, and more. And many companies choose to work with an Employer of Record in Netherlands to stay compliant from day one.
DEFAULT
Indefinite contract

The indefinite ('onbepaalde tijd') contract is the legal default. It can only be terminated by the employer via one of eight statutory 'reasonable grounds' (with UWV permit or subdistrict-court approval), mutual consent, or employee resignation with notice.

REGULATED USE

Fixed-term ('bepaalde tijd') contracts capped by the ketenregeling: max 3 consecutive fixed-term contracts within a 3-year period; a 4th contract or exceeding 3 years total automatically converts to indefinite (a break of over 6 months resets the chain). Employer must inform employee in writing at least 1 month before expiry if the contract lasted 6+ months.

Employees

Employment basics

Here's what you need to know about their employment laws, taxes, termination rules, and more. And many companies choose to work with an Employer of Record in Netherlands to stay compliant from day one.
WORKING HOURS
36-40 hrs/week

No single statutory 'full-time' number — 36, 38, 40 hours/week all common by sector/CBA. The Working Hours Act sets outer limits: max 12 hrs/shift, max 60 hrs in any one week, averaged max 55 hrs/week over 4 weeks, averaged max 48 hrs/week over 16 weeks. No mandated overtime premium by statute — governed by CBA/contract.

PROBATION PERIOD
2 months max

Indefinite contracts: max 2 months. Fixed-term under 6 months: no probation allowed. Fixed-term 6 months-2 years: max 1 month. Fixed-term 2+ years: max 2 months. Either party may terminate immediately during probation without notice or statutory ground.

13TH / 14TH SALARY
Not Required

Dutch law does not require a 13th/14th month salary. Mandatory is vakantiegeld (holiday allowance) of at least 8% of gross annual salary (Art. 15-17 WML), usually paid in May/June or spread monthly. Many CBAs additionally pay a discretionary year-end bonus (eindejaarsuitkering, often ~8.33%) functioning like a 13th month, but this is contract/CBA-based, not statutory.

JOB TITLE REGULATIONS
Checkmark
Regulated

No general statutory restriction reserves job titles for Dutch nationals. Non-EU/EEA/Swiss nationals generally need a single permit (GVVA) or Highly Skilled Migrant residence permit tied to an IND salary threshold. Regulated professions (healthcare BIG register, law, financial services) require licensing regardless of nationality.

Legal

Taxes & employment costs

Here's what you need to know about their employment laws, taxes, termination rules, and more. And many companies choose to work with an Employer of Record in Netherlands to stay compliant from day one.
EMPLOYER CONTRIBUTIONS
17.81
%

Approximate 2026 employer-paid contributions, capped at the SV-wage ceiling of €79,409/year: AWf/WW unemployment 2.74% (indefinite)/7.74% (flex); Aof/WIA disability 6.27% (small employer)/7.63% (large employer); Whk return-to-work fund averaging ~1.52% (range ~0.38%-6.08%); Zvw healthcare 6.10%; Wko childcare 0.50%. Summed at typical rates ≈17-18%; treat as illustrative, not fixed. NOTE (added 2026-08-24): this 17.81% figure is statutory social-insurance contributions ONLY and does NOT include the separate mandatory 8% vakantiegeld holiday allowance (tracked in the 13th/14th salary fields) — total employer cost of employment ≈ 25.81% (17.81% + 8%). This differs from the figure currently live on remofirst.com/country-guide/netherlands (19.7% before vakantiegeld, going to ~27.7% after), which is built from different and partly stale component rates not yet reconciled with this project's research (e.g. its Zvw line shows 6.51% vs. our verified 6.10%; its Work Resumption Fund line shows ~3.00% vs. our researched ~1.52% national average — though Whk is employer-specific so RemoFirst's real rate could genuinely differ). Also open: whether Aof should use the large-employer rate (7.63%) instead of small-employer (6.27%) given RemoFirst's scale, which would move this figure to ~18.49% — not yet resolved, do not change the 17.81 field value until confirmed.

EMPLOYEE CONTRIBUTIONS
27.65
%

Employees don't see separate AWf/Aof/Whk/Zvw deductions on their payslip — the 'employee social contribution' is the national insurance premium block (AOW 17.90% + Anw 0.10% + Wlz 9.65% = 27.65%), built into the lowest Box 1 income-tax bracket (35.70% combined rate up to €38,883 in 2026) rather than itemized separately. Employees also pay a flat nominal Zvw premium (~€150-160/month) directly to their insurer, not included in this figure.

Dutch payroll tax and social-premium rates (Aof, Whk, AWf, Zvw), the SV-wage cap, and income-tax brackets are set/adjusted annually by the Belastingdienst. Figures reflect confirmed 2026 rates as researched in August 2026; Whk and Aof rates are employer-specific and should be reconciled against the Belastingdienst's official rates table.
Cost Calculator
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Employer of Record cost calculator

Found talent in another location outside your home base? Know the potential cost using RemoFirst before you commit. Use our calculator to get instant, country-specific employee cost estimates in 185+ countries.

*This calculator provides reliable estimates based on up-to-date local data. While it's not a final EOR quote, it gives you a strong benchmark for planning.

Calculate your EOR costs
Time Off

Leave entitlements

Here's what you need to know about their employment laws, taxes, termination rules, and more. And many companies choose to work with an Employer of Record in Netherlands to stay compliant from day one.
Type
Duration
Pay During Leave
Annual leave
20 days
100% (+8% vakantiegeld)
Maternity leave
16 weeks
100%
Paternity leave
1 week
100%
Sick leave (days 1-3)
Days 1-3
≥70% (employer; no day-tier system)
Days 4-20
≥70% (employer, unchanged), topped up to minimum wage if needed
(Days 21+)
≥70% (employer), up to 104 weeks; many CBAs top up to 100% in yr 1
Special Leave
A few hours up to about 1 day, paid 100% by the employer
Calamiteitenverlof (emergency/short-term leave for sudden unforeseen personal circumstances)
Up to 2x weekly working hours per 12-month period, paid at minimum 70% of wage
Kortdurend zorgverlof (short-term care leave)
Up to 6x weekly working hours per 12-month period, unpaid unless employer/CBA agrees otherwise
Langdurend zorgverlof (long-term care leave)
6 weeks per parent, within a 26-week window, paid 100% via UWV (capped)
Adoptie- en pleegzorgverlof (adoption and foster-care leave)
People Morale

Benefits

Here's what you need to know about their employment laws, taxes, termination rules, and more. And many companies choose to work with an Employer of Record in Netherlands to stay compliant from day one.
Statutory Benefits

In addition to statutory leave, employees are entitled to the following statutory benefits:

EMPLOYER CONTRIBUTIONS

The Netherlands funds social security through a split system: employer-paid contributions plus national insurance premiums embedded in the employee's income tax bracket.

  • Employer-paid (capped at SV-wage ceiling €79,409/year): AWf 2.74%/7.74%; Aof 6.27%/7.63%; Whk ~1.52% average; Zvw 6.10%; Wko 0.50%.
  • Employee-borne (via Box 1 tax): AOW 17.90%, Anw 0.10%, Wlz 9.65% (total 27.65%), built into the 35.70% first-bracket rate (income up to €38,883).

Employees also pay a flat nominal Zvw premium directly to their private insurer.

WORKPLACE INJURY PROTECTION

The Netherlands has no standalone mandatory workers' compensation scheme. Work-related injury/illness is covered through the general sickness mechanism:

  • Employer pays at least 70% of wage (topped up to minimum wage in first 52 weeks) for up to 104 weeks, regardless of whether the illness/injury is work-related.
  • If incapacity persists beyond 2 years, the employee may qualify for WIA disability benefit via UWV.
  • Employers fund part of this via the Whk premium; may opt to self-insure ('eigenrisicodrager') instead.
SEVERANCE PAY

Statutory severance is the transitievergoeding (transition payment), owed whenever the employer initiates termination — no minimum service requirement since the 2020 WAB reform.

  • Formula: 1/3 of one gross monthly salary per full year of service, pro-rata for partial years, across the entire employment duration.
  • 2026 statutory cap: €102,000 gross, or one gross annual salary if higher.
  • Not owed for voluntary resignation, summary dismissal for serious misconduct, or reaching state pension age.
  • A subdistrict court can award extra 'billijke vergoeding' on top if the employer acted seriously culpably.
13TH SALARY

There is no statutory 13th or 14th month salary in the Netherlands.

  • The only mandatory extra payment is vakantiegeld (holiday allowance): at least 8% of gross annual salary.
  • A genuine 13th-month/year-end bonus is common via many CBAs or contracts but is not a universal legal entitlement.
Time Off

Termination & notice

Here's what you need to know about their employment laws, taxes, termination rules, and more. And many companies choose to work with an Employer of Record in Netherlands to stay compliant from day one.
Scenario
Severance
Unfair dismissal
Dutch dismissal law is a closed/exhaustive system: an employer may only terminate unilaterally on a statutory 'reasonable ground' after showing redeployment was not possible. A dismissal failing either test is unlawful. Employees can contest before the subdistrict court within 2 months and seek reinstatement or additional 'billijke vergoeding'.
Objective / fair dismissal
Requires one of eight statutory 'reasonable grounds' under Art. 7:669(3) BW, via UWV permit (economic reasons, long-term illness) or subdistrict court approval (other grounds including the 2020 'cumulatiegrond' combination ground, which can trigger up to 50% extra compensation). Transition payment remains due regardless of route.
During probation
Either party may end employment immediately, without notice or a statutory ground; no UWV/court approval needed. Transition payment accrues from day one but is minimal given short tenure.
After probation
Full statutory dismissal protection applies: valid statutory ground, correct procedural route (UWV or court), and applicable notice period (1-4 months by tenure). Transition payment due on employer-initiated termination.
Notice periods and dismissal-grounds framework are statutory minimums under the Dutch Civil Code and WWZ/WAB reforms; actual outcomes depend on applicable CBA, contract terms, and UWV/court discretion. Confirm current thresholds with local counsel.
Content last reviewed Sep 2026. Employment laws change fast, always verify critical hiring decisions, and talk to our team of international experts.

Hiring in Netherlands FAQ

How RemoFirst employs in Netherlands
It can be prohibitively expensive to establish an entity in every country you want to hire talent in Netherlands, 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.
How employees in Netherlands get paid

Your employee's hours, time off, holidays, bonuses, and commissions are automatically calculated into payroll. RemoFirst will invoice you in either US Dollars (USD), Euros (EUR), British Pounds (GBP), Canadian Dollars (CAD), Australian Dollars (AUD), or Singapore Dollars (SGD) around the 15th of each month to make sure your employees are paid on time. To make it even easier, you can summarize your entire global team's salaries to aggregate them into one payment (instead of many individual payments).

Full-time Employees vs Global Contractors

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.

Dependable support for employees

Whenever the employee or employer has a question about, or anything else related to international employment, they can speak with our customer support team to get answers from our team of experts.

More than once, I have had a need or request that was answered not just with a fix, but with a permanent improvement of my service. They go out of their way to give me even better than I ask for, without extra charges. RemoFirst makes it as uncomplicated as possible to have employees in multiple countries. This is a great blessing to our business.
Kenny S.
-
Co-CEO
@
Blomberg Music Productions
RemoFirst is an amazing platform, everything is extremely user friendly and easy to use compared to other tools that I have been using in the past. Inna and the team were on point and replying to my questions in a more than timely manner as well as making our life super easy! Great people and platform, I'll highly recommend it to my network.
Hugo D.
-
Business Ops & Strategy Manager
@
Aflorithmic
EORs can be really, really complex and there is so many different grey areas involved. But working with RemoFirst, they're able to make things clear and concise. It's been a fantastic relationship and they partner really well with all the teams that need to be involved in our hiring process.
Leanne T.
-
Manager of HR Business Operations
@
PandaDoc
RemoFirst enables us to compliantly hire and manage employees in countries where we lack an entity, saving time and costs as we scale Creatio globally. They offered the best pricing among all EORs we considered, and the setup process was smooth despite our many questions. The team has been kind and attentive, and the platform is easy to navigate. We’re excited to have completed our onboarding and to be working with RemoFirst!
Olivia H.
-
Global HR Manager
@
Creatio
RemoFirst helps to increase flexibility in the hiring process to ensure remote teams can be successfully onboarded anywhere in the world. Customer service is quick to respond to any queries. Positive onboarding experience. Would recommend to others. Makes hiring smooth and hassle free for remote workers.
Emma T.
-
Program Lead EMEA
@
Trust Lab
RemoFirst ensure to provide an easy and smooth transaction in hiring remote workers across the globe; they will take care of all the nitty gritty part of hiring remote workers without having an entity in a country. They also provide a reasonable pricing that is also appropriate for a startup. What I liked most about RemoFirst is their customer service! Special kudos to our account manager, Victor, who has consistently provided us with speedy and prompt responses from initial contact up to now.
G-Anne B.
-
Recruiter
@
Portcast
RemoFirst enables me to work remotely and stay compliant in my home country. It’s also very helpful for submitting and managing expenses, making it a great addition to my primary HR platform with its admin features. The platform is simple, intuitive, and easy to navigate, with more than adequate functionality for getting things done efficiently.
Martin P.
-
Head of Marketing
@
BetVictor
“We had an entity that was located in a different country that wanted to hire members in the US without affecting the tax status, having RemoFirst help out by being the EOR was the best solution. The setup of the EOR was very easy and we had a dedicated account manger the entire time. Having a dedicated account manager made resolving issues simpler than it would have been otherwise. Nice touch!”
Weston M.
-
Financial Controller
@
Truffle Ventures
When we were first looking into partnerships to support our remote team, the complexity and options were overwhelming. RemoFirst was patient and explained how things work, often answering questions that I know were outside of what they technically do. This made me feel informed as a business owner and showed how the team goes above and beyond. Our team members who we've hired using our Remofirst partnership had glowing things to say about the experience.
Rachel W.
-
CEO
@
Vinebase
I had some details to be clarified with the contract, but the staff was very helpful in helping me sort it out. Also, the laptop delivery arranged by RemoFirst was a breeze! The device arrived the next day!
Jane Ruth A.
-
Client Success Consultant
@
Osome
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