Basic information
Capital:Amsterdam
Time zone: GMT+1
Languages: Dutch
Currency code: EUR
Human Resources at a Glance
Contract Terms
A Dutch version of the employment agreement is not required under Dutch law. An English-only version is permitted under Dutch law and is common practice in the Netherlands.
A contract must include:
- Name
- Start date
- Length of the employment
- Job description
- Termination conditions
It is a common and recommended practice in the Netherlands to offer a fixed term contract to ensure a good match before entering into a permanent contract as terminations can be complex. It is possible to enter into 3 fixed term contracts with a maximum total duration of 3 years.
Guidelines Regarding Probation Period/Trial Period
Probationary periods can be for a maximum of 2 months for indefinite term employment agreements and for fixed term employment agreements for 2 years or more. For fixed term contracts of less than 2 years (but a minimum of 6 months) a probation period of 1 month can be agreed upon. This cannot be extended under Dutch law.
Regulations and Rules Regarding Working Hours
Overtime payment is not mandatory.
Standard working hours are 8 hours per day, 40 hours per week. The standard workweek is from Monday to Friday.
Overtime is paid according to the following rates
Working overtime on weekdays is usually paid 1.25 times the normal wage, and working overtime on weekends and public holidays is paid more
Minimum Wage Requirements
In the Netherlands, the minimum base salary for full-time employees over 21, not including the holiday allowances, is EUR 2.317,83 a month. Lower minimum base salaries apply to employees under the age of 21. The minimum wage is pro-rated for part-time employees.
Payroll Cost for Employers
The employer cost is generally estimated at approximately 20% of the employee salary, estimated on a salary of €66,956 gross, being the maximum salary for social security contributions. Anything below or under this salary will result in different percentages.
Please note that in The Netherlands, by local labor law, employees are entitled to a yearly holiday allowance (8% of salary) which is included in the base monthly salary and invoiced as an employer cost. Depending inter alia on the sector and preferences of offering a pension scheme, a private pension contribution might come on top of the below contributions, which amounts to another 15,7%.
- Social security employer costs
- Unemployment tax: 2.64% for indefinite contracts; 7.64% for definite contracts
- WGA and ZW – Disability and Sickness social security: 0.87%
- ZVW – National Health Insurance: 6.57%
- Disability: 7.54%
- Child care social security: 0.50%
- Mandatory company doctor: EUR 8.00
- Pension contribution*: 15.7% of employee’s pensionable salary + USD 14 admin fee
*Capped at a maximum monthly salary of EUR 5,969.
Please note: the pension fund contribution will be prorated considering employee’s working hours. The maximum pensionable salary and a franchise apply to the pension contribution calculations. These amounts may be subject to change annually and according to local regulations.
Holiday Allowance
The 8% holiday allowance is invoiced monthly as an employer cost, separately from the salary. However, this cost is included in the employee’s annual salary.
Termination
Grounds
Terminations must respect complex rules and the rules of an employee’s employment country. The off-boarding is always handled by the Employer with the primary stakeholders. It may include ad-hoc fees as well as required or recommended steps on specific termination cases.
An employer can only come towards a termination of an employment agreement on the basis of a valid reason in combination with the fact that there is no longer a suitable redeployment for the employee within the company. The following reasons are specified in the Dutch legislation:
- Redundancy due to economic circumstances
- Long-term disability (two years)
- Frequent absence due to illness or disability which results in unacceptable consequences for business operations
- Underperformance
- Misconduct
- Refusal to perform contractual duties due to conscientious or religious objection
- Disturbed relationship
Terminations in the Netherlands can be complex. As a general rule you cannot unilaterally terminate an employee in the Netherlands without the permission of the Dutch Courts or the Dutch Unemployment Agency (UWV). In most cases it is therefore preferred to seek mutual consent to a termination in which case the governmental permission is not required.
Notice Period
When a termination is done by mutual consent, notice periods are often required in order to obtain the employee’s consent. Typically, the notice period can be between 1-4 months depending on how long the employee has been with the company. Notice periods always start at the end of the month.
Notice periods should be applied as follows:
- Less than 5 years of service: 1 month’s notice
- Between 5 and 10 years of service: 2 months’ notice
- Between 10 and 15 years of service: 3 months’ notice
- 15 years or more of service: 4 months’ notice
Severance compensation
When a termination is done by mutual consent, severance payments are often required in order to obtain the employee’s consent. Typically, the amounts for severance by mutual agreement can be equivalent to 2-6 months of salary or more depending on the strength of the case. In case of a termination by the court or the Dutch Unemployment Agency (UWV) the statutory severance needs to be paid which is roughly 1/3 gross monthly salary per each year worked.
Payment & leave Compensation & Holidays
SalaryPayment
Monthly
Payslip Payroll
In the Netherlands, employers usually provide a payroll listing the employee’s salary, tax deductions and social insurance contributions, work done by the employee, and other relevant information.
Annual Leave
The legal minimum number of vacation days for an employee in the Netherlands per year is four times the number of days worked per week.
This typically means 20 holidays in the case of a full-time employee working for five days a week. Most employers in the Netherlands grant their employees 25 days of paid holidays.
Sick Leave
Employers are obliged to pay ill employees their salary for a period of 2 years.
The payment of wages consists of 70% of the last earned salary – as long as the salary does not exceed the maximum daily wage, in which case the continued payment of wages is capped at 70% of the maximum daily wage – and in the first-year entails at least the statutory minimum wage. In general, employment contracts often state that the employer will pay 70% or 100% of the employee’s full salary (the amount is not capped) for the 1st year of illness and 70% of the employee’s salary (the amount can be capped) during the 2nd year of illness.
Maternity & Parental Leave
Expectant mothers who are employed are entitled to take up to 16 weeks paid pregnancy leave (which includes a 4-week compulsory leave period). In the case of multiple births, employees are entitled to take up to 20 weeks of paid pregnancy leave. Usually, 4-6 weeks of pregnancy leave is taken before the expected date of childbirth. Pregnancy leave will be extended if the female employee continues to be unable to work as a result of her pregnancy or childbirth. Time off for antenatal appointments are paid for by the employer.
Pregnancy leave is paid by the employer at 100% of the gross salary, up to a maximum of 100% of the maximum daily earnings. The employer can request reimbursement of the statutory amount through the Dutch Employee Insurance Agency (UWV). There is no qualifying period of service for pregnancy leave
In addition to maternity and paternity leave, parents with children under the age of 8 years old are entitled to parental leave of 26 times the number of hours they work per week for every child they have. 9 first weeks are paid, while the remaining 17 are unpaid. It is possible to discuss when employees take this leave, which can be spread out over those 8 years. Parents are entitled to take parental leave for each child.
The first 9 weeks of parental leave is government-paid at 70% of their regular salary, with the cap of 70% of the maximum daily wage. There is flexibility to take it but the total amount of hours for the leave need to be equal to an employee’s full working week. Paid parental leave can only be taken until the child turns one. Employers are able to apply for an allowance for the paid parental leave of its employees through the Dutch Employee Insurance Agency (UWV).
Tax and Social Security Information
Personal Income Tax
The individual income tax ranges from 37.07% to 49.50%. Income tax is calculated according to progressive rates.
| Gross Annual Income | Applicable tax rate |
| Up to EUR 73,031 | 36.93% |
| Over EUR 73,032 | 49.50% |
Social security
- Public Health Care
- Social Security
- Unemployment Insurance
- Dutch Health Insurance
Public Holidays 2024
| 假期 | 日期 |
| New Year’s Day | 1.1 |
| Good Friday | 3.29-4.1 |
| King’s Day | 4.27 |
| Liberation Day | 5.5 |
| Ascension Day | 5.9 |
| White Sunday | 5.19-5.20 |
| Christmas Day | 12.25-12.26 |
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