Discover the global hiring and employment landscape in the Netherlands – recognized for its innovation-driven economy and strategic location in Europe, the Netherlands offers a vibrant business ecosystem with access to global markets. With its highly skilled workforce and favorable business climate, the Netherlands is an attractive destination for international expansion.
| Taxable Income (EUR) | Progressive Tax Rate (%) |
|---|---|
| Up to 38,098 | 36.97 |
| 38,098–75,518 | 36.97 |
| Over 75,518 | 49.50 |
The tax rate for the first bracket shall be calculated at 9.32% + 27.65% = 36.97%, with the latter portion of the amount being used to pay for the employee's National Insurance contribution. This national insurance scheme are comprised of the following components:
| General Old Age Pensions Act (AOW) | Surviving Dependents Act (Anw) | Long-Term Care Act (Wlz) | Contribution Base |
|---|---|---|---|
| 17.90% | 0.10% | 9.65% | Up to EUR 38,098 |
There are no local taxes on employment income in the Netherlands.
Where an employer's size plays a role in determining their rate of contributions, it is important to note that the employers are classified as follows:
| Employer classification | Total wages subject to contributions in 2022 (EUR) |
|---|---|
| Small | Up to 942,500 |
| Medium | 942,500–3,770,000 |
| Large | Over 3,770,000 |
New employers should always be classified as small employers for their first 2 years unless they started as an acquiring employer after a transfer of a company.
In any case, the following contributions are calculated based on the employee's annual income of up to EUR 71,628.
| Contribution Rate | Note | |
|---|---|---|
| General Unemployment Fund (Awf) | 2.64% | Employees with a non-permanent employment contract shall pay a higher premium of 7.64% |
| Resumption of Work Fund (Whk) | 0.29%–6.55% | This rate only applies for small employers. Actual rate of contribution varies by sector and the employer's size. |
| Disability Fund (Aof) | 6.18% | Employers classified as a medium or large employer shall pay a higher premium of 7.54% |
| Childcare Surcharge (Wko) | 0.50% | - |
| Health Insurance (Zvw) | 6.57% | - |
Aside from the National Insurance contribution that is withheld as a part of their employment income tax, there are no additional contributions required from the employee.
The employer must pay the employee's wages on a specific date as set under the employment agreement.
The wages due must be paid after the ending of the agreed upon period, provided that that the term of payment is not shorter than one week and not longer than one month.
Employers in the Netherlands must pay their employees at least the statutory minimum wage if they are at least 21 years old. This is set at EUR 13.27 per hour.
Younger employees are entitled to reduced minimum wages at only a certain percentage of the statutory minimum wage, as follows:
| Age | Percentage |
|---|---|
| 20 years old | 80% |
| 19 years old | 60% |
| 18 years old | 50% |
| 17 years old | 39.5% |
| 16 years old | 34.5% |
| 15 years old | 30% |
There is no statutory bonus in the Netherlands, though it is common for employers to offer their employees 13th month pay.
The party who terminates the employment agreement must notify the other party in writing of the reason for termination upon their request. In any case, employers must have a valid reason and follow the proper procedure when dismissing an employee.
If the employee agrees with the dismissal, the employer can take one of the following options without obtaining prior approval from the UWV or the sub-district court:
| Transition Payment | Note | |
|---|---|---|
| Dismissal by mutual consent | No, but must reach a final settlement where dismissal compensation or severance pay is an option. | The settlement agreement must be recorded and the employee shall be granted a reconsideration period. |
| Termination with consent | No | Employee must agree to this in writing, and they shall be granted a reconsideration period. |
On the other hand, if the employee disagrees with the dismissal, the employer will need the approval of the UWV or the sub-district court to dismiss.
| Valid reasons for dismissing an employee | Dismissal when permission of either the UWV or sub-district court is not needed |
|---|---|
| Economic reasons, e.g. restructuring, company relocation or bankruptcy | When the employee falls into a category where no permission for dismissal is required |
| If the employee is incapacitated for 2 or more years | |
| If the employee is often sick and this has serious repercussions on the business, and no other job or suitable work is feasible | When the employee is dismissed due to bankruptcy |
| If the employee's performance is unsatisfactory, provided that the employee has been warned and given the opportunity to improve | When the employee is still in the probationary period |
| If the employee commits willful misconduct or is culpably negligent | When the employee is dismissed on the spot |
| If the employee has serious conscientious objections to the business activities and there are no alternative work | |
| If the working relations are impaired and cannot be restored | |
| In the event of non-performance of work, provided that this is done through the sub-district court on cumulative grounds | When the employee has reached the state pension age |
| Other relevant circumstances |
Employees who resign shall observe a 1-month notice period, while employers dismissing their employees shall observe the following notice period:
| Length of Service | Notice Period |
|---|---|
| Less than 5 years | 1 month |
| 5–10 years | 2 months |
| 10–15 years | 3 months |
| 15 years and over | 4 months |
Each party is entitled to terminate the employment agreement with immediate effect as a consequence of an urgent reason, which at the same time is announced to the opposite party.
Both employer and employee may agree to different notice periods than the one required under the Dutch Civil Code, provided that they are in line with the following rules:
| Employer's notice period | Employee's notice period |
|---|---|
| Can only be shortened if it is allowed under a collective agreement | Can be shortened in writing |
| Can be lengthened in writing | Can be lengthened in writing up to a maximum duration of 6 months, provided that the employer's notice period is at least be twice the duration |
Severance must be paid to the employee when they are dismissed, when they resign for reasons attributable to the employer and when their contract are not being extended.
The severance pay an employee is entitled to is calculated at one-third of their gross monthly wage per year worked, and the maximum severance an employee can receive is the higher of EUR 94,000 or their gross annual salary.
A probationary period can be executed for employment contracts that last over 6 months, and the contract can generally be terminated without reason or notice during their probationary period. In any case, probationary period must be agreed to in writing, and shall not exceed the following maximum durations:
| Maximum duration for probation | |
|---|---|
| Temporary employment contracts of between 6 months and 2 years, or those without end date | 1 month |
| Permanent employment contracts or temporary employment contracts of more than 2 years | 2 months |
An employer or employee asking for the grounds of the termination will give rise to the obligation to provide written grounds. Furthermore, even if employees on probation can be dismissed without grounds, employers must still observe prohibitions on terminating a contract.
Employees can work up to a maximum of 12 hours per day and 60 hours per week, inclusive of overtime. However, this cannot be done every week.
In determining an employee's working hours, the employer must make sure that they do not work more than a weekly average of 48 hours over a 16-week period or 55 hours in up to 4 consecutive weeks.
Employees who work for more than 5.5 hours are entitled to a break period of at least 30 minutes, and those who work for more than 10 hours are entitled to a break period of at least 45 minutes. These periods can be split into multiple periods, provided that each of them are at least 15 minutes long.
Break periods are generally not counted as work hours, and shall therefore not be paid.
In addition to the above break time, female employees are also entitled to use up to 25% of their working hours to breastfeed their newborn in the first 9 month after their birth. This time should be counted as work hours.
Overtime refers to work performed in excess of the contracted hours, and these are calculated towards the statutory maximum hours an employee is allowed to work. Overtime premiums are not regulated under the Working Hours Act, though there could be provisions for this in the applicable collective agreements.
Employees are entitled to 11 consecutive hours of rest in between each working day. This can be shortened to 8 hours once per 7-day period if the nature of the work or circumstance requires it.
Employees are also entitled to the following weekly rest:
| Weekly rest | |
|---|---|
| Employees with a 5-day work week | 36 consecutive hours at the end of the work week |
| Employees with a longer work week | 72 hours in a period of 14 days, which can be split into two periods of at least 32 hours each |
By default, an employee must not be required to work on Sundays unless the employer and employee have made an agreement in this respect. Work on Sundays is only permitted incidentally if the type of work requires this. The business circumstances may also dictate that work on Sunday is necessary, in which case an agreement must be reached with the works council and the employee themselves.
In any case, an employee must have at least 13 free Sundays per year. A collective agreement may contain provisions reducing the number of free Sundays to less than 13, but even in such case, the employee must consent.
Employees should inform their employers of their intentions to take leave as early as possible, especially when it requires the employers to apply for UWV benefits on their behalf. It is generally recommended that a 4–8 weeks' notice is given to the employers in advance.
There are no statutory obligations to give employees leave during public holidays, though it may be required under a collective bargaining agreement. There are 11 days of public holidays in the Netherlands for 2024
| Holiday | Date |
|---|---|
| New Year's Day | January 1 |
| Good Friday | March 29 |
| Easter | March 31–April 1 |
| King's Day | April 27 |
| Liberation Day | May 5 |
| Ascension Day | May 9 |
| Pentecost | May 19–20 |
| Christmas Day | December 25 |
| Boxing Day | December 26 |
An employee is entitled to an annual leave that is equivalent to 4 times the number of hours they work per week for every completed year of service. This essentially gives employees 4 weeks of annual leave.
Employees on annual leave shall be paid their regular wage, plus a holiday allowance equivalent to 8% of their gross salary for the previous year.
Employees may choose to take their annual leave up until 6 months after the end of the year. Any leave not taken after that point shall expire unless the employee has a valid reason for not taking their leave. In any case, the contracting parties may decide to extend the expiry period under the collective agreement to a maximum of 5 years.
Note: Employees who have not completed a full year of service shall have their annual leave prorated accordingly.
Employees unable to perform work due to them being sick are entitled to 70% of their wages for a period of up to 104 weeks.
This leave can be taken by those who are unable to work due to pregnancy or child delivery if they are not entitled to the maternity or birth leave under the Work and Care Act.
Note: Employers may be able to apply for sickness benefit from the UWV on behalf of eligible employees instead of continuing wage payments.
Pregnant employees are entitled to 6 weeks' pre-natal leave and at least 10 weeks' post-natal leave. If the child is born earlier than expected, the following shall apply:
| The child is born before the scheduled leave | The total maternity leave shall be 16 weeks, calculated from the day after the birth. |
|---|---|
| The child is born before the due date, but after the leave has started | The post-natal leave shall begin after the actual birth, and be extended to compensate for the pre-natal leave lost |
If the child is hospitalized for more than 7 days directly after birth or during the maternity leave, the employee may be entitled to up to 10 weeks of additional leave.
Furthermore, post-natal leave can be extended to be longer than 10 weeks in the following circumstances:
| Explanation | |
|---|---|
| Transferring pre-natal leave to post-natal leave | Employees can transfer up to 2 weeks of pre-natal leave to be taken as post-natal leave |
| Baby born later than due date | Post-natal leave will begin after the actual birth, so the total maternity leave duration will be extended accordingly |
In any case, the employee must take 6 consecutive weeks off work after giving birth, while the rest of their entitlement can be spread over a period of 30 weeks.
Note: Employers shall continue wage payments during the duration of the maternity leave and then apply to claim for the maternity benefit paid from the UWV.
The partner of an employee who gives birth are entitled to a week of paid paternity leave, which can be taken any time in the first 4 weeks after the birth of the child.
After taking the standard 1-week paternity leave, the employee can request for an additional unpaid paternity leave of up to 5 weeks. This shall be taken within 6 months after childbirth, and employees who take this unpaid leave will be able to request for their employer to assist in claiming the benefits from the UWV for up to 70% of their salary.
Employees with children aged up to 8 years old are entitled to up to 26 weeks of parental leave.
| Is the parental leave paid? | |
|---|---|
| Weeks 1–9 | Covered by UWV at 70% of employee's daily wage |
| Weeks 10–26 | No |
Parental leave shall apply mutatis mutandis to children who are adopted or fostered as well, and those with twins are entitled to double the parental leave.
Note: The employer shall apply for a benefit claim from the UWV on behalf of their employees on leave.
| Leave Type | Paid/Unpaid | Duration | Note |
|---|---|---|---|
| Adoption or Foster Leave | Unpaid | 6 weeks |
This leave can be taken from 4 weeks before the arrival of the child and up to 22 weeks after their arrival. The employer shall apply for a benefit claim from the UWV on behalf of their employees on leave. |
| Care Leave | Both | 2–6 weeks per year |
This leave can be taken over a short- or long-term to take care of loved ones who have become ill. Employees on short-term leave (2 weeks per year) shall continue to receive 70% of their salary, while those on long-term leave shall go unpaid. |
| Emergency Leave | Paid | - | This leave can be taken for very urgent, unexpected or special personal situations. |
| Political Leave | Unpaid | - | For employees to attend Parliament meetings and the meetings of related bodies and commissions |
| Pregnancy Check-Up Leave | Paid | - | For pregnant employees to do pregnancy check-ups. |
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