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hire in the Netherlands

Netherlands PEO &
Employer of Record

SALARY PAYMENT IN Euro (EUR, €)

CONTRACT LANGUAGES Dutch / English

PAYROLL TAX 13.46% – 25.72%

PAYROLL CYCLE Monthly or weekly

TIME TO HIRE 12 hours

Hire and pay talents
with Horizons in
180+ countries

Simple, compliant hiring with Horizons PEO

Hire in Netherlands

Horizons ensures day-to-day guidance to help your business navigate Netherlands labor laws and regulations. Horizons also ensures payroll is processed weekly or fortnightly (the standard periods in Netherlands ), and that taxes are withheld as required.

As the Netherlands Employer of Record, Horizons is responsible for employee income tax withholding, payment of payroll taxes to state authorities, and submission of tax returns to the Netherlands Tax Office. 

Partnering with our Netherlands PEO is the quickest and most cost-effective way to enter the Netherlands market.

Facts & Stats

PEO Platform Hire in the Netherlands, and pay employees through our platform or app. PEO Cost Our Netherlands PEO solution is the most affordable on the market. Time-to-hire Fast onboarding in the Netherlands, hire in as little as 12 hours.
Contracts We draft labor contracts compliant with Dutch labor law. Local Benefits We administer all mandatory benefits and contributions in the Netherlands. 180+ Countries It doesn’t stop with the Netherlands — we are an international PEO
stay compliant with Netherlands labor laws

Employment Laws

Employment contracts in Netherlands 

The Netherlands has extensive employment laws, and your business may also be affected by EU regulations, so it’s vital that you understand your specific situation and the relevant laws before commencing operations.

We strongly recommend drawing up a formal contract of employment in writing whenever hiring in the Netherlands. These contracts should clearly detail all necessary information about the role and employment agreement, such as salary/wage, benefits and entitlements, and termination terms. Any references to compensation should be in Euros.

By partnering with our Netherlands PEO, Horizons’ team of local experts can provide assistance for drafting strong employment contracts that are compliant with local regulations. 

Picture of Expert Knowledge
Expert Knowledge

Tom Kussmann, COO
(Berlin)

“If you have negotiations with trade unions as part of the employment process, then be sure to include any agreed terms in the contract as well.”

Fixed-term
Probationary period≤6 months employment: No probation period allowed
6 months to 2 years: max. 1 month
>2 years: max. 2 months
Termination notice period

1 month (standard)

6 months (maximum)

Severance

Only paid in specific cases and must be requested by the employee:

1/3 monthly gross salary per year of service (84,000 EUR max.)

Indefinite
Probationary period2 months max
Termination notice period

1 month (standard)

6 months (maximum)

Severance

Only paid in specific cases and must be requested by the employee:

1/3 monthly gross salary per year of service (84,000 EUR max.)

Special noteIn cases of employee sickness, the employer will be obligated to continue paying the salary for up to 24 months.
Risk of Misclassification

The Netherlands, like many other countries, treats self-employed individuals or contractors and full-time employees differently. Misclassification of contractors in the Netherlands may lead to fines and penalties for the offending company.

Working hours in the Netherlands

The upper limit of working hours in the Netherlands is 12 hours per day and 60 hours per week. However, the normal working week is only around 40 hours. This can be longer in some circumstances and if agreed upon by the employee.

Hire compliantly in Netherlands without a local entity.

Quick, compliant hiring in 12 hours—no subsidiary required.

Public holidays in the Netherlands

There are several annual public holidays in the Netherlands, and many employees will receive some of these off as paid leave (although this is not legally mandated).

Netherlands has a range of national public holidays that are celebrated annually. In 2024 these holidays are:

DateHoliday name
1 Jan, 2024New Year’s Day
29 Mar, 2024Good Friday
31 Mar, 2024Easter Sunday
1 Apr, 2024Easter Monday
27 Apr, 2024King’s Birthday
5 May, 2024Liberation Day
9 May, 2024Ascension Day
19 May, 2024Whit Sunday
20 May, 2024Whit Monday
25 Dec, 2024Christmas Day
26 Dec, 2024Second Day of Christmas

Vacation leave in the Netherlands

In the Netherlands, employees are legally entitled to a minimum of 20 days of paid vacation leave. Some may negotiate more than this, and many employers choose to offer more days as part of their benefit packages.

Sick leave in the Netherlands

Workers in the Netherlands are entitled to up to two years of paid sick leave, covered by their employer. For the first year, employees receive at least 90% of pay, and in the second year the rate is at least 80%, within predefined limits. Employers can choose to offer more as part of a benefits package.

Parental leave in the Netherlands

Mothers are legally entitled to at least 16 weeks of paid leave, with six weeks before the birth and ten weeks after. Male parents can take two days paid and three days of unpaid leave. 

Parents can take additional unpaid parental leave until their child is eight years old. They are both entitled to take this separately, and it is limited to 2600% of normal weekly working hours. Commonly, parents will work reduced hours for a few months before returning to work full time.

Taxation in the Netherlands

The Netherlands has expansive social benefits programs in place for the public, and these are partially funded by both employees and their employers. Generally, employers can expect to pay a little over 20% on top of salaries in these social contributions.

The corporate tax rate in the Netherlands is 19%, rising to 25% on taxable earnings over €200,000. These rates are set to fall in 2021.

The country operates a progressive income tax system, with rates between 9.7% and 49.5% depending on income level.

Health coverage in the Netherlands

The healthcare system in the Netherlands is quite complex. While people are covered automatically, most are also required to arrange private health insurance for short-term healthcare needs. However, the insurance system is heavily regulated, and significantly cheaper than countries such as the US, costing roughly €100 per month.

The healthcare system is partially funded by employer and employee contributions.

Terminations and severance in the Netherlands

The procedure for terminations in the Netherlands is highly complex and can be difficult to navigate for foreign organizations. In short, employers have several options:

  • Terminating the employment by mutual agreement between employer and employee.
  • Taking the case to the UWV (Employee Insurance Agency)
  • Taking the case to the cantonal court.
  • Urgent dismissal

The majority of employers aim to terminate by mutual consent, as this is the simplest and fastest route in most cases.

Sometimes, severance payments may be necessary. For example, if an employee has been with a company for over two years, they are entitled to one-sixth of monthly salary per half-year of employment for the first ten years. For ten years or more of service, employees are entitled to one-quarter of monthly salary per half-year of employment. Older employees (over 50 years old) may be entitled to even larger severance payments. The limit is generally €75,000, but additional payments may be awarded by the court if the dismissal is deemed to be unjust.

Due to the complexity of Dutch terminations and severance laws, and the potentially large payouts, it is important that you fully understand the relevant laws when expanding into the Netherlands.

Navigating employee terminations and handling severance packages can be complicated for companies expanding overseas for the first time. Horizons’ Netherlands PEO can mitigate risk for foreign companies and provide guidance through this process.

Picture of Expert Knowledge
Expert Knowledge

Sebastian Klotz,
Sales Manager (Berlin)

„When hiring in the Netherlands, companies are often unaware that dismissal terminations are nearly impossible, often resulting in expensive mutual termination agreements with high severance amounts. A specific consultation can help to better understand and navigate the Dutch hiring market.”

hassle-free Netherlands compensation & benefits

Compensation & Benefits

Compensation laws in the Netherlands

As of 24 Jan 2024, the minimum wage is 2069.96 euros, if you are under 21. The government adjusts the minimum wage amount twice a year – on 1 January and 1 July – in line with changes in average collectively agreed wages in the Netherlands.

The amounts of the minimum wage are calculated for a full working month, week or day. The law does not show how many hours there are in a full working week. However, it is usually considered as 36, 38 or 40 working hours in a full week.

Amount of net minimum wage
Your employer will withhold taxes and social insurance contributions from your gross wage. The net amount you receive will depend on how much is withheld. This can differ from one person to another. The law does not lay down net amounts.

Full minimum wage for employees subject to an employment permit
Employers must apply for an employment permit for employees from outside the EU. To be issued with a permit, the employer must pay at least the full minimum wage payable to employees aged 21 and older, even if the employee is younger than 21 or works part-time.

  Age  Per month  Per week  Per day
  21 years and    older  € 2069.96  € 460,40  € 92,08
  20 years  € 1.596,00  € 368,30  € 73,66
  19 years  € 1.197,00  € 276,25  € 55,25
  18 years  € 997,50  € 230,20  € 46,04
  17 years  € 788,05  € 181,85  € 36,37
  16 years  € 688,30  € 158,85  € 31,77
  15 years  € 598,50  € 138,10  € 27,62

Age

Minimum Wage (Per Month in USD)

21                         

$2,135

20

$1,708

19

$1,281

18         

$1,066

17

$843

Minimum Wage Country Comparison Chart (Per month in USD)
Switzerland (Geneva) $4,000
Italy $2,255
Australia $1996
Algeria $156
Uzbekistan $22
Benefit management in the Netherlands

Organizing a Dutch benefits system for your employees can be a long and difficult process as a foreign company. You should be prepared to spend a significant amount of time setting up the system and keeping it compliant, which can cause delays in the hiring process.

Alternatively, you could use a payroll outsourcing firm to handle your Dutch payroll. At Horizons, our Netherlands payroll experts can set up and manage your benefits system for you, freeing you to focus on your successful expansion.

Hire in Netherlands in 12h
without your own local entity.

With Horizons, you get quick service, transparent pricing, and expert support.

FAQs

A Netherlands PEO and a Netherlands EOR are two types of companies which specialize in providing human resources services to businesses in Netherlands.

The main difference between a Netherlands PEO and a Netherlands EOR is in the scope of their services.

Netherlands PEOs provide a full range of HR services, including payroll, benefits administration, and employee recruiting—all under one roof as a co-employer. Engaging a Netherlands PEO is essentially outsourcing your HR duties in Netherlands.

Netherlands EORs actually take over as the legal employer of your employees based abroad. Netherlands EORs become responsible for labor compliance for your employees in the Netherlands.

At Horizons, we offer both PEO and EOR services in Netherlands. Get in touch now and let us know what service you are seeking.

A PEO in the Netherlands can feasibly hire both local and foreign nationals to work in the Netherlands.

However, the ability of Horizons to sponsor your foreign national employee in the Netherlands may be limited due to visa quotas practiced in many countries.

Contact us with your requirements and our Global Mobility team with review the case and get back to you within 2 business days.

In most cases, Horizons’ the Netherlands PEO can hire & onboard your employee within 12 hours. The actual start date of the employee will depend on their notice period obligation to their previous employer as well as any relevant hiring rules in the Netherlands.

It is possible to get a work visa in the Netherlands. Horizons’ Global Mobility team is a dedicated team of work visa experts. They assess the details of each case to determine feasibility and costs before Horizons applies for the work visa on behalf of your employee. If the Global Mobility team determines that your case is feasible, the process is smooth and transparent. Visa spots in the Netherlands are limited, however—get started today to secure your employees’ visa spot.