Netherlands
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Introduction
General Overview & Economic Facts
- The Netherlands (Nederland), informally known as Holland, is a country in Western Europe along the North Sea coast
- The Netherlands is amongst the highest-ranking countries with regard to freedom of press, economic freedom, quality of life and human development, as well as all round happiness
- The Netherlands’ economy ranks 17th by nominal GDP (2021) and 27th by PPP (2021)
- The Netherlands ranks 8th on the HDI (2019)
Why Employ In Netherlands?
- The main exports from the Netherlands are machinery and transport equipment, mineral fuels, food, clothing and footwear, and pharmaceuticals
- 11.91% of the population is between the ages of 15 and 24 years, with 38.47% of the population being between the ages of 25 and 54. The Netherlands has a youthful population, making it a favorable country to employ young, energetic employees
Overview Of The Labour Law
- Employment law in the Netherlands is governed by statutory regulations codified in the Dutch Civil Code. Collective Labour Agreements (Dutch Collectieve arbeidsovereenkomst, CAO) in certain business sectors and internal regulations (if applicable) also play a role
- Employment law provides strong labor conditions and protections for employees, so employing people will generally be an important investment and commitment
- Temporary agencies are often used to provide more flexibility
Fun Country Facts
- Almost 80% of the world’s flower bulbs come from the Netherlands
- Gin was invented by the Dutch
- CDs, DVDs, and Blu-Ray were all invented in the Netherlands
Why Use Playroll Services For Netherlands?
- Employing in the Netherlands requires companies to have their own legal entity in the country as well as managing payroll, employee benefits, taxes and legal compliance. This can get quite complicated, especially with the complexity of employment laws in the Netherlands
- With Playroll’s Employer of Record services, your team will be employed by our established legal entities in each country
- We will take care of payroll, employee benefits, taxes, legal compliance and provide ongoing employee support, so that you can focus on growing a thriving team
Employer Contributions
These are additional costs incurred by employers over and above the employee’s monthly gross salary and/or bonus.
Unemployment Benefit Scheme
Called WW in the Netherlands
Calculated on a maximum salary of EUR 59,706.00 per year.
Fixed-term contract
General unemployment fund premium (low)
2.70%
Flexible contract
Premium general unemployment fund (high)
7.70%
Health Insurance
Called ZVW in the Netherlands
7.00%
Calculated on a maximum salary of EUR 58,311.00 per year.
Disability Insurance
Called work and income (capacity to work) scheme (WIA) in the Netherlands
Calculated on a maximum salary of EUR 58,311.00 per year.
Basic Premium
7.03%
Surcharge for childcare
0.50%
WHK differential contribution
± 1.36%
Holiday Allowance
8.00%
Employee Contributions
These are costs incurred by employees that reduce their monthly gross salary and/or bonus to determine their net “take home” pay.
Insurance
Called AOW; ANW; WLZ; AKW in the Netherlands
Calculated on a monthly salary of EUR 35,129.00
General Old-Age Pension/State Pension (AOW)
17.90%
National Survivor Benefits (ANW)
0.10%
Long-term Care (WLZ)
9.65%
General Child Benefit (AKW)
0.00%
No contribution, but employees receive a benefit for this
Health Insurance
Called ZVW in the Netherlands
5.75%
Income Tax
Income Tax is ‘Pay As You Earn’
Income bracket per annum
0.00 – 35,129.00
9.45%
35,130.00 – 68,507.00
37.10%
68,508.00 or more
49.50%
Employment Terms
General
Minimum Wage
- Age 18- EUR 39.26 per hour
- Age 19- EUR 47.11 per hour
- Age 20- EUR 62.81 per hour
- Age 21 and older- EUR 78.51 per hour
Working Hours
- Maximum of 55 hours per week over a 4 month period
- Minimum of 30-minute meal interval after 5,5 hours of work
- Typical working hours start at 09h00 and end at 17h30, Monday to Friday
Overtime
- The terms of the overtime hours and payment are stipulated in the employment contract
Notice Period
- Employed between 0 and 5 years- 2 weeks’ notice
- Employed between 5 and 15 years- 3 weeks’ notice
- Employed for 15 or more years- 4 weeks’ notice
Severance Pay
-
1/3 monthly salary per entire year of employment
Probation Period
- There is no statutory probation period
- Employees can expect a probation period of a maximum of 2 months for permanent contracts and 1 month for fixed term contracts.
Bonus
- There is no statutory bonus
Public Holidays
Public holidays 2023
- January 1st – New Year’s Day
- April 7th – Good Friday
- April 9th – Easter Sunday
- April 10th – Easter Monday
- April 27th – King’s Day
- May 5th – Liberation Day
- May 18th – Ascension Day
- May 28th – Whit Sunday
- May 29th – Whit Monday
- December 25th – Christmas Day
- December 26th – 2nd Day of Christmas
Leave
Paid Leave / Vacation Days
- Paid leave
- Paid by employer
- Minimum of 4 weeks per year
Sick Leave
- Paid leave
- Paid by employer
- Maximum of 2 years
Maternity Leave
- Paid leave
- Paid by Social Security
- 16 weeks per year
Paternity Leave
- Paid leave
- Paid by employer
- 1 week paid leave and an additional 5 weeks unpaid leave
Parental Leave
- Unpaid leave
- 26 times the employee’s working hours per year
Short-Term Care Leave
- Paid leave
- Paid by employer
- Twice employee’s weekly working hours
Long-Term Care Leave
- Unpaid leave
- Six times the employee’s weekly working hours