Payroll Cycle
Minumum Wage
Age Per month Per week Per day
21 years and older € 1.725,00 € 398,10 € 79,62
Overtime Pay
Visa Immigration

Talent Wiki - Netherlands

Your quick guide on talent and labor compliance norms in Netherlands
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Capital
Amsterdam
Currency
Euro (EUR)
Languages
Dutch(Official), Frisian, English, Papiamento, Dutch Low Saxon, Lumbergish
Payroll Frequency
Monthly
GDP per Capita
$61,159
Employer Tax
18.69% - 23.69%

Supplementary Guide for Employment and Expansion in Netherlands

Talent Overview

The Netherlands holds a score of 79.5 in the economic freedom score, and therefore, the country holds the rank of 8th most free country in the 2022 Index. The major contributions to the GDP of the country are agriculture, industrialization, and the service sector. The Netherlands also holds the 5th rank in the European region out of 45 countries, in terms of GDP per capita.

Major Economic Hubs:

Amsterdam, Groningen, Eindhoven and Utrecht

Skills in Demand:

Engineers, ICT specialists, Healthcare specialists

Local Universities

The top local universities in the Netherlands are as follows:

Universiteit Utrecht (Utrecht University)

RANKING

Netherlands : 1

World : 127

Universiteit van Amsterdam

RANKING

Netherlands : 2

World : 156

Technische Universiteit Delft

RANKING

Netherlands : 3

World : 187

Rijksuniversiteit Groningen

RANKING

Netherlands : 4

World : 227

Wageningen Universiteit

RANKING

Netherlands : 5

World : 231

Salary Data

Some common jobs in the Netherlands and their corresponding salary information are listed below:

Job Title Salary Range (EUR) Salary Range (USD)
Finance Manager 5,170 - 14,400 5851.64 - 16,298.57
Supply Chain Manager 4,350 - 13,900 4,923.53 - 15,732.65
HR Manager 3,380 - 11,400 3,825.64 - 12,903.03
Data Analyst 2,240 - 6,930 2,535.33 - 7,843.69
Developer 2,100 - 7,250 2,376.87 - 8,205.88
Customer Service Representative 1,420 - 7,200 1,607.22 - 8,149.28

Talent Sourcing Tips

Top Local Job Boards

Indeed, uwv, werk.nl

Number of LinkedIn Users

10,080,000

Multiplier Recruitment Partner

iXceed

Employing in Netherlands

While onboarding any individual from the Netherlands, the employer must know about the Labor laws, employment terms, deductions, and benefits. This section has all the necessary information that employers can use.

Employee Contract

Employee Contracts may be in Dutch or in any other language that the employer and employee may be able to understand. The contract should mention all the necessary conditions with leaves, working hours, benefits, and allowances to be provided to the employee.

Probation Period

The probation policy for newly hired Dutch employees is up to 2 months. 

Public and Provincial Holidays

Date Name Type
1 Jan New Year's Day Public Holiday
15 Apr Good Friday Public Holiday
17 Apr Easter Sunday Public Holiday
18 Apr Easter Monday Public Holiday
27 Apr King's Birthday Public Holiday
26 May Ascension Day Public Holiday
5 Jun Whit Sunday Public Holiday
6 Jun Whit Monday Public Holiday
25 Dec Christmas Day Public Holiday
26 Dec Second Day of Christmas Public Holiday

Employee Leaves

Type of Leave Time Period Mandatory
Annual/Earned Leave 20 days Yes
Sick Leave 730 days Yes
Maternity Leave 16 weeks Yes

Payroll

Payroll Cycle

The monthly salary must legally be paid before the end of the following month.

When there is a collective labor agreement in place, a different payment deadline might be agreed upon.

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Minimum Wage

Click on the link below to get more details about the minimum wage in the Netherlands:

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Overtime pay

There are no specific regulations for overtime pay in the Netherlands. It will depend on what the employer and employee agreed to, in the employment contract.

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Health Examination Clause

Bonus

13th Month Pay

The 13th-month pay is customary in Netherlands.

Employee Benefits

  • ~Unemployment Insurance
  • ~Health Insurance
  • ~Child Care
  • ~Leaves
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Taxes

Employer Payroll Tax

Category Contribution Maximum (EUR)
Unemployment Insurance (WW) 2.7%-7.7% 2.94 is for the indefinite duration of employment
Health Insurance 6.70% 319.545
Child Care Premium 0.50% -
Disability Act (WIA & Whk) 7.03% 407.77

Employee Payroll Tax

Category Contribution Maximum (EUR)
Old Age Pension(AOW) 17.9% 517.7875
Orphans and widow/widower pension(ANW) 0.1% 2.8925
Long Term Care(WLZ) 9.65% 279.1425
Total Employee Cost 27.65% 0

Employee Income Tax

Annual Taxable Income Tax Rate
0 to 35,472 EUR 9.42%
35,472 to 69,398 EUR 37.07%
Above 69,398 EUR 49.5%

VAT

The Standard VAT in the Netherlands is 21%.

Offboarding & Termination

Termination Process

‍Dismissal by mutual consent is only valid if it is recorded in a written termination agreement (settlement agreement).

The employee has 14 days to reconsider the dismissal by mutual consent. If he fails to do so, the reconsideration period will be automatically extended to 21 days.

On the other hand, terminating an employee on reasonable grounds will have to be consented to and agreed upon by the employee. Employers will then be required to pay a transition payment.

Notice Period

Dutch employees that are still under their probationary period are given a notice period of up to 30 days. For employees outside probation, they are given up to 4 months of notice period.

Severance Pay

1/3 of the gross monthly wage per year from the first day of employment.

The maximum amount is €83,000.

Visa and Immigration

In order to work in the Netherlands, the individual may either apply for a residence permit or a work permit.

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