The Netherlands combines a highly educated, English-fluent workforce with clear employment rules and a mandatory holiday allowance. All-in employer cost runs around 1.2x the gross salary. Here is what to know before your first Dutch hire.
Employment runs under the Civil Code and, in many sectors, a collective labour agreement (CAO). Contracts are usually written, chain rules limit successive fixed-term contracts, and dismissal requires either UWV permission or a court route.
Employer costs sit around 20%, made up of national-insurance and employee-insurance contributions (unemployment, disability) plus the healthcare levy, largely paid by the employer.
Employee-insurance contributions apply up to a maximum wage, and sector funds under a CAO can add pension and training levies on top of the statutory rates.
Employees pay wage tax and national insurance combined in the payroll (loonheffing) on a progressive scale. Withholding is the employer's responsibility, which under EOR means ours.
*All figures are estimates from public sources (2025-26), pending ops verification - same basis as the EOR cost calculator. Not tax or legal advice.
Compliant Dutch employment contract, payroll, holiday allowance, and benefits, handled. One invoice, flat $399 per month.