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.
A statutory minimum wage applies, set as an hourly rate of about €13.27 for adults as of 2024* and updated twice a year.
Monthly, or four-weekly in some sectors. A mandatory 8% holiday allowance (vakantiegeld) accrues on top of salary, usually paid in May.
Around 8 to 11 recognised public holidays. Paid time off for them is common but often governed by the CAO rather than hard law.
Written contracts are standard. A probation period (proeftijd) is allowed only in longer contracts and capped at one or two months. A 30% ruling may apply to eligible expats.
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.
At least four times the weekly working hours per year (20 days on a five-day week). Many CAOs grant more, plus the 8% holiday allowance.
At least 16 weeks of pregnancy and maternity leave, paid by the UWV up to a maximum.
One week of paid partner leave plus up to five further weeks at about 70% via the UWV, and partly paid parental leave for the first weeks.
The employer must continue at least 70% of pay for up to two years of illness, the longest such obligation in Europe.
Dismissal needs a valid ground and either UWV permission (economic or long-term illness) or a court dissolution. Notice runs one to four months depending on tenure.
A statutory transition payment (transitievergoeding) is due on employer-initiated termination, at one-third of a month's salary per year of service.
Allowed only in contracts longer than six months, capped at one month (or two for open-ended contracts), and it must be in writing.
The DBA rules target false self-employment (schijnzelfstandigheid); a contractor working like an employee can be reclassified, with back payroll taxes and premiums.
*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.