The Netherlands is among the top remote work destinations* in the world. For companies expanding into Europe, this country offers top-tier talent, a highly digitized infrastructure, and proximity to lucrative markets.
Employment in the Netherlands: The job landscape, 2025
- The Netherlands has a low unemployment rate of 3.8%* and a high job vacancy rate of 4.3%.
- Almost 38% of business owners identify labor shortage as a primary obstacle, and there is fierce competition for skilled professionals.
- Salaries and benefits expectations are rising, especially for experienced candidates.
- Hiring demand may ease slightly in 2025. Only 11.6% of businesses plan to add new staff this year, compared to 15.7% in 2024.
- Part-time employment is increasingly popular. In 2024, 419,000* Dutch couples reported having part-time jobs, up from 229,000 in 2014.
For successfully hiring and growing teams in the Netherlands, employers must understand the direct, egalitarian work culture and employee expectations around flexibility and fairness. They must also comply with its strict regulations. Several aspects of Dutch labor law are unique and are often missed by foreign companies expanding here.
This guide helps you meet your Netherlands hiring goals while eliminating risk. It explores key costs and considerations, outlines practical steps, and suggests how an Employer of Record (EOR) can simplify the process.
Why hire teams in the Netherlands?
The Netherlands is a strategic business location with clear advantages for global employers:
- The Netherlands houses two of Europe’s largest logistics hubs: the Port of Rotterdam and Schiphol Airport.
- It offers companies access to skilled, business-ready talent with strong technical skills and widespread English fluency..
- Companies benefit from clear labor laws, strong intellectual property protections, and an efficient legal system.
- Ranked the eighth most innovative* economy, the Netherlands is a pioneer in technology, life sciences, and logistics.
- Open, direct communication and a collaborative work style make the Netherlands an attractive regional headquarters for global teams*
Before hiring: understand job expectations, legal complexities, and costs
As we saw earlier, the job market in the Netherlands is candidate-driven. To successfully hire here, employers must understand the employee expectations and work culture. They must be clear, fair, and transparent. Employees want you to think beyond transactional hiring, investing in people’s growth, not just their output.
Navigating work culture in the Netherlands
Respect work-life balance
- Studies show Dutch employees prioritize reasonable hours and flexible arrangements over higher salaries.
- As we explored earlier, 4-day workweeks and part-time work are extremely common here.
- Remote work is normalized, and employees have the legal right to request remote work arrangements under the “Work Where You Want Act” (pending final enactment in 2025).
Commit to fairness and transparency
- Dutch workplace culture is known to be direct, non-hierarchical, and inclusive.
- A 2023 Randstad Employer Brand Research report showed that transparency around pay and honest communication were key factors in Dutch job choice.
- The Dutch labor law enforces detailed written contracts — candidates expect full clarity before joining.
Invest in your employees
- A LinkedIn Workforce Report Netherlands (2024) found that 78% of professionals in the Netherlands value skill development and career progression when choosing an employer.
- Companies that offer structured learning programs, mentorships, and growth paths see higher retention rates in the Dutch market.
Prepare for the real cost of hiring in the Netherlands
Hiring employees in the Netherlands typically costs 1.3 to 1.5 times the gross salary.
Mandatory employer costs are one aspect and include payroll taxes, pension contributions, unemployment insurance, health insurance, an 8% annual holiday allowance, transition payments for terminations, and additional benefits under collective labor agreements (CAO).
But, businesses must also budget for administrative overheads, entity setup costs, and consultancy fees to manage tax, legal, and HR compliance. Without localized expertise, the risk of missteps — unclear contracts, missed CAO obligations, or incorrect worker classification — can quickly escalate into financial penalties and legal claims.
These compliance restrictions and administrative overheads can be cumbersome for foreign companies that want to expand quickly, test the waters in the Netherlands, or build a lean, agile workforce. Here, EOR or Employer of Record services offer a practical, cost-effective alternative.
What is an EOR, and how does it simplify Netherlands hiring?
An Employer of Record (EOR) is a third-party organization that legally employs talent on your behalf. You manage talent acquisition and day-to-day work while the EOR handles everything else — contracts, payroll, taxes, benefits, and compliance.
An EOR can help you accelerate processes, save costs, and reduce administrative hassles at every step of the Netherlands recruitment process. In the next section, we explore how.
Successfully hire in the Netherlands: A playbook
So, how can your company hire successfully in the Netherlands—while staying compliant, building a strong employer brand, and creating a productive employee experience?
The next steps outline a successful in-house hiring process and explain how an Employer of Record (EOR) can help.
Step 1: Set up an entity and register with the ATO
Before in-house hiring, you must first establish a local entity in the Netherlands. Register your company with the Dutch Chamber of Commerce (KvK), tax authorities, and social security bodies. Entity setup takes 2–6 weeks and may cost you anywhere between €5500–€22,00, including share capital, legal fees, payroll setup, notary, and consultancy fees.
Once you form a Dutch subsidiary, you can start advertising for job positions in the local labor market.
How an EOR helps
With an EOR service, you sidestep the need to set up a Dutch entity for hiring, onboarding, and paying employees in the Netherlands. You avoid setup costs and hassles and save time. The EOR will manage all the administrative burdens and legal responsibilities of hiring.
Step 2: Classify workers correctly
Employers must correctly classify workers to stay compliant. Mistakenly classifying an employee as a contractor or vice versa can mean penalties and fines.
The Dutch Civil Code (Burgerlijk Wetboek) defines employee categories in the Netherlands:
- Full-time and part-time employees: Protected under Dutch labor law, with rights to minimum wage, paid leave, pension contributions, and sick pay.
- Temporary/fixed-term employees: Subject to the “Chain Regulation,” which limits consecutive temporary contracts to three, or a maximum of three years, before conversion to a permanent contract (unless a six-month gap applies).
- Freelancers (ZZP’ers): Must meet independence criteria set by the Dutch Tax Authority — such as working with multiple clients, bearing entrepreneurial risk, and operating without employer control.
In the Netherlands, temporary contracts cannot be extended indefinitely. After three consecutive temporary contracts or three years of temporary contracts, employees must get a permanent contract.
If there’s a dispute (say, a freelancer claims employee rights), Dutch labor courts interpret the situation based on facts — not just contracts. Even if you sign a contract labeling someone a “freelancer,” Dutch authorities will look at the reality of the working relationship.
Before defining your job description, define the following:
- Does the employee work under your direction?
- What economic dependency will they have on you?
- How will you integrate them into your organization?
To prevent misclassification errors, understand more about CAOs or take our worker classification quiz.
How an EOR helps
A good EOR partner knows how Dutch labor law defines employee vs contractor status and will ensure every worker is hired under the correct category whether full-time, part-time, or temporary.
Step 3: Scout for talent and screen candidates
Employers must inform the Netherlands Chamber of Commerce that they are hiring staff. They can then advertise roles on popular Dutch job platforms like LinkedIn, Indeed.nl, Monsterboard, and Nationale Vacaturebank.
Once you select your candidates, you must conduct background checks in compliance with the Dutch Data Protection Authority (DPA) for your staff including interim personnel, self-employed professionals, temporary staff, interns, and volunteers. Hiring staff in the Netherlands in sectors like healthcare and hospitality may require additional verification in the medical records or visitor register.
Employers must keep a record of the identity documents of all newly recruited employees, including any Dutch or foreign employees and interns. Verifying and recording the identity of the contracted employee is a must, even after terminating working relations (for at least five years).
How an EOR helps
Many EOR services help you with compliant background screening and reduce all other administrative tasks and compliance burdens, so you can focus on high-quality talent acquisition.
Step 4: Enter into a contract of employment
A clear written contract is an essential requirement as per Dutch labor law. Employees expect clarity, transparency, and professionalism at this stage.
Ensure that your contract clearly states:
- Job title and duties
- Salary and benefits
- Working hours
- Notice periods
- Reference to any applicable CAO
Onboarding your employee also includes
- Collecting BSN (citizen service number)
- Registering with Dutch health insurance
- Providing a pay slip and employment terms overview
How an EOR helps
A reliable EOR handles onboarding workflows and manages employee files securely. It generates ready-to-sign, locally compliant contracts within minutes.
Step 5: Manage taxes, social security, and payroll
Before paying salaries, your company must understand its employer obligations and the Dutch payroll tax structures. Setting up a payroll system is important for efficiency and compliance.
In the Netherlands, employers must:
- Pay healthcare contributions under the Health Insurance Act (Zvw).
- Offer a mandatory holiday allowance equal to 8% of annual salary, typically paid out in May.
- Pay sick leave wages at least 70% of salary for up to two years if the employee becomes ill.
- Register employees’ BSNs (citizen service numbers) correctly for tax and insurance filings.
- Issue compliant payslips, showing gross salary, deductions, holiday allowance, and net pay.
- Submit monthly wage tax returns and reports to the Dutch Tax and Customs Administration (Belastingdienst).
Employers must also contribute to pension plans if covered under a sector-specific Collective Labor Agreement (CAO).
How an EOR helps
Navigating these complex requirements can be resource-intensive — especially if you’re managing a small team. An Employer of Record (EOR) ensures full compliance, automating all payroll deductions, tax filings, holiday allowances, and social security contributions based on Dutch law and any applicable CAOs.
From local payroll regulations to CAO entitlements, compliant, efficient hiring in the Netherlands takes time, effort, and local expertise. Without localized knowledge, companies risk costly errors, delays, and compliance penalties. Whether you’re building a dev team in the Netherlands or hiring sales reps for Benelux, here is a quick overview of what you’ll need to do.
Snapshot view: ‘Hire in Netherlands’ checklist
- Register with the KvK, tax authorities, and social security bodies.
- Set up automated payroll covering wage tax, national insurance contributions, and mandatory holiday allowance payments.
- Issue compliant Dutch employment contracts.
- Verify employees’ health insurance and registered BSN (citizen service number).
- Plan for employer social security contributions (WW, ZW, WIA) and healthcare-related taxes (Zvw).
- Maintain GDPR-compliant personnel files with identity proof, signed contracts, and salary documentation.
- Prepare to pay mandatory sick leave of at least 70% of salary for up to two years if required.
- Offer pension contributions where required by sector-specific CAOs.
- Ensure monthly reporting to the Dutch Tax and Customs Administration (Belastingdienst).
An EOR can help you check all the boxes, ensuring compliance without administrative or legal hassles. Let’s quickly recap in-house versus with an Employer of Record.
In-house hiring vs. Employer of Record (EOR) services
If you opt for an EOR over in-house hiring, ensure you select a provider with experience in Dutch labor laws and a transparent, all-in-one monthly solution. Multiplier is a robust solution, trusted by hundreds of businesses, designed to facilitate compliant hiring in the Netherlands.
Multiplier ensures that you get:
- Fully compliant Dutch employment contracts aligned with labor laws and collective agreements (CAOs) and streamlined onboarding
- Automated payroll and tax filings, including wage tax, social contributions, and holiday pay
- Built-in benefits administration, including sick leave, pension contributions, and mandatory insurance
- A single platform to manage all HR administration
- Assistance with work permits for non-EU/EEA employees
Whether you’re hiring one designer in Amsterdam or building a full-stack team in Rotterdam, Multiplier empowers you to scale with complete confidence
Why HR teams love Multiplier for Netherlands expansion
Expanding into the Netherlands requires navigating a complex landscape of national laws, collective labor agreements (CAOs), and stringent employer obligations. These challenges can become significant bottlenecks for HR teams aiming to scale efficiently and cost-effectively.
Here’s why Multiplier is a preferred partner:
- Recognized industry leader
Multiplier has been named an Industry Leader in the 2024 IEC Global EOR Study, highlighting its excellence in global employment solutions - Trusted by global clients
With 500+ five-star reviews across third-party review sites, consistently named Leader in HR software by G2 - Efficient hiring in the Netherlands
Multiplier has helped companies of all sizes hire quickly and compliantly across borders, reducing time-to-hire from weeks to days.
Hundreds of companies trust Multiplier to hire across borders with ease and confidence. We’ve saved them millions of dollars while helping them nurture excellent employee experiences rooted in local work cultures.
Book a demo today and see how Multiplier can help you build productive, happy teams in the Netherlands quickly, efficiently, and compliantly.
Frequently asked questions (FAQs)
Q. Where do I post jobs and find candidates in the Netherlands?
When looking for the best places in the Netherlands to hire remote talent, you typically want to hire talent from the following regions:
- Amsterdam
- Rotterdam
- The Hague
- Utrecht
- Leiden
- Groningen
These regions have a higher economic activity than the rest of the country, larger business hubs, and more available talent. Getting graduates from the top universities in the country is also a good idea:
- Wageningen University and Research
- University of Amsterdam
- Utrecht University
- Erasmus University Rotterdam
- Leiden University
Another way to hire talent is to post listings on popular job sites and portals or hire through a trusted recruitment agency. Popular job portals are:
Q. What is the average Netherlands salary?
The average gross monthly salary in the Netherlands is approximately €3,200, but it varies by industry and region. Here’s an approximation of the average yearly salary for six different positions:
Finance Manager: USD 6,656 – 9,215
Developer (Contract): USD4,402 – 5,836
Data Specialist – Warehousing/BI/Architect/Science (Contract): USD 4,402 – 5,836
Customer Service Representative (Multilingual): USD 2,765 – 3,891
HR Manager: USD 7,167 – 9,727
Supply Chain Manager (Contract): USD 4,608 – 6,758
Q. Is it easy to find jobs in Netherlands for foreigners?
Yes. Many international companies operate in the Netherlands, and English-speaking jobs in the Netherlands for foreigners are common in tech, finance, and logistics.
Q. What are the working hours in the Netherlands?
Employment laws in the Netherlands do not specify what constitutes a standard workweek. However, The Working Hours Act does place limits on working hours, setting the maximum length of any working shift at 12 hours and the total number of hours worked per week at 60 hours.
The Working Hours Act also sets some guidelines for employee rest breaks:
- If an employee works for more than five-and-a-half hours, they are entitled to at least 30 minutes of break time. This can be split into two 15-minute breaks.
- If an employee works for more than ten hours, they must have at least 45 minutes of break time. This can be split into several breaks, each of which must be at least 15 minutes.
There are also no national standards for overtime hours and overtime pay regarding jobs in the Netherlands.
Working hours should be agreed upon by both parties in the employment contract.
Dutch law does not provide a national standard for overtime, and it is usually agreed upon within individual employment contracts.
Q. What are the regulations on working during the holidays in the Netherlands?
There are eight public holidays in the Netherlands. There is no national standard for work on rest days. If you require your Dutch employee to work on weekends or public holidays, you must factor in extra pay or compensatory rest. Agree to these terms, in writing, within the contract, during onboarding.
Q. How long does it take to hire in the Netherlands?
If hiring directly, it can take 4–8 weeks. With Multiplier, hiring can be completed in just a few days.
Sources:
- Global Remote Work Index
- Ministry of Social Affairs and Employment
- Foreign Citizens Working in the Netherlands
- Randstad Brand Research
- WIPO, Global Innovation Index 2024
- LinkedIn-Workplace Learning Report
- Payroll Taxes
- Registering as an Employer
- Hiring Staff as an Eenmanszaak
- What Permits Do Foreign Workers Need?
- As a Foreign Worker, Can I Work in the Netherlands?
- Minimum Wage Amounts
- What Types of Leave Are There?
