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Netherlands Employment Guide

Your quick guide on talent and labor compliance norms in Netherlands




Euro (EUR)


Dutch(Official), Frisian, English, Papiamento, Dutch Low Saxon, Lumbergish

Payroll Frequency


GDP per Capita


Employer Tax

18.69% - 23.69%

Talent Overview

The Netherlands holds a score of 79.5 in the economic freedom score, and therefore, the country holds the rank of 8th most free country in the 2022 Index. The major contributions to the GDP of the country are agriculture, industrialization, and the service sector. The Netherlands also holds the 5th rank in the European region out of 45 countries, in terms of GDP per capita.

Major economic hubs:

Amsterdam, Groningen, Eindhoven and Utrecht

Skills in demand:

Engineers, ICT specialists, Healthcare specialists

Netherlands Map

Local Universities

The top local universities in Netherlands are as follows:

Netherlands Uni1

Technische Universiteit Delft


Local: 1

World: 124

Netherlands Uni2

Universiteit Utrecht


Local: 2

World: 125

Netherlands Uni3

Universiteit van Amsterdam


Local: 3

World: 132

Netherlands Uni4

Universiteit Leiden


Local: 4

World: 137

Netherlands Uni5

Rijksuniversiteit Groningen


Local: 5

World: 143

Salary Data

Some common jobs in the Netherlands and their corresponding salary information are listed below:

Job Title Average Monthly Salary (EUR) Average Monthly Salary  (USD)
Finance Manager 9,560 10,648
Supply Chain Manager 8,880 9,891
HR Manager 7,200 8,020
Data Analyst 4,470 4,979
Developer 4,560 5,079
Customer Service Representative 1,890 2,105
Netherlands Talentsource

Talent Sourcing Tips

Top Local Job Boards:

Indeed, uwv,

Number of LinkedIn users:


Multiplier Recruitment Partner:


Employing in the Netherlands

While onboarding any individual from the Netherlands, the employer must know about the Labor laws, employment terms, deductions, and benefits. This section has all the necessary information that employers can use.

Employee Contract

Employee Contracts may be in Dutch or in any other language that the employer and employee may be able to understand. The contract should mention all the necessary conditions with leaves, working hours, benefits, and allowances to be provided to the employee.

Probation Period

The probation policy for newly hired Dutch employees is up to 2 months.

Public and Provincial Holidays

Date Name Type
1 Jan New Year’s Day Public Holiday
29 Mar Good Friday Public Holiday
31 Mar Easter Sunday Public Holiday
1 Apr Easter Monday Public Holiday
27 Apr King’s Birthday Public Holiday
5 May Liberation Day Public Sector
9 May Ascension Day Public Holiday
19 May Whit Sunday Public Holiday
20 May Whit Monday Public Holiday
25 Dec Christmas Day Public Holiday
26 Dec Second Day of Christmas Public Holiday

Employee Leaves

Type of Leave Time Period Mandatory
Annual/Earned Leave 20 days Yes
Sick Leave 730 days Yes
Maternity Leave 16 weeks Yes



Payroll 1

Payroll Cycle

The monthly salary must legally be paid before the end of the following month.

When there is a collective labor agreement in place, a different payment deadline might be agreed upon.

Payroll 2

Minimum Wage

From January 2024, only minimum hourly wages are published. There are no longer fixed minimum monthly, weekly and daily wages. The current minimum wages are as follows:

Payroll 3

Overtime Pay

Overtime can be paid by the employer in three different ways:


13th Month Pay:

The 13th-month pay is customary in the Netherlands.

Employee Benefits:

  • Unemployment Insurance
  • Health Insurance
  • Child Care
  • Leaves


Employer Payroll Tax:

Category Contribution Maximum (EUR)
Unemployment Insurance (WW) 2.94%-7.94% 2.94 is for the indefinite duration of employment
Health Insurance 6.68% Up to EUR 66,956
Child Care Premium 5%
Disability Act (WIA & Whk) 8.55% 407.77

Employee Payroll Tax:

Category Contribution Maximum (EUR)
Old Age Pension(AOW) 17.9% 517.7875
Orphans and widow/widower pension(ANW) 0.1% 2.8925
Long Term Care(Wlz) 9.65% 279.1425

Employee Income Tax:

Taxable income (EUR) Tax on column 1 (EUR) Tax on excess (%)
Over (column 1) Not over
0 37,149 9.28
37,149 73,031 3,447 36.93
73,031 And more 13,251 36.93

*Note: the tax rate of box 2 will be adjusted by 2024, by introducing two new brackets: a basic rate of 24.5% for the first 67.000 euros in income per person and a rate of 31% for the remainder.


The Standard VAT in the Netherlands is 21%.

Offboarding & Termination

Dismissal by mutual consent is only valid if it is recorded in a written termination agreement (settlement agreement).

The employee has 14 days to reconsider the dismissal by mutual consent. If he fails to do so, the reconsideration period will be automatically extended to 21 days.

On the other hand, terminating an employee on reasonable grounds will have to be consented to and agreed upon by the employee. Employers will then be required to pay a transition payment.

Dutch employees that are still under their probationary period are given a notice period of up to 30 days. For employees outside probation, they are given up to 4 months of notice period. 

1/3 of the gross monthly wage per year from the first day of employment.

The maximum amount is €83,000.

Visa and Immigration

In order to work in the Netherlands, the individual may either apply for a residence permit or a work permit.

Netherlands Visa
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Minimum Wage

Gross minimum wage (EUR) as of January 1, 2024
Age Per hour
21 and older 13.27
20 10.62
19 7.96
18 6.64
17 5.24
16 4.58
15 3.98


Overtime Pay

  • Time-for-time: here the overtime hours worked are converted into extra time off. This can be done on a one-to-one basis, where 1 overtime hour worked corresponds to 1 hour off, but it can also be subject to a surcharge, such as 1 hour worked, 1.5 hours off. The rules for this are written out in the collective bargaining agreement, which also states within which period the free hours must be taken. (CLA does not apply in this case) Overtime may be forfeited if stated in the employment contract. It is often the case that the extra time off that an employee gets from working overtime must be taken within a certain period of time.
  • Extra pay: you simply pay your employee more pay. For each hour worked, he or she gets one hour more pay.
  • Overtime pay: it is also possible to pay overtime more than normal working hours. You do this using a surcharge, as we have calculated below.

Overtime is taxed

Pay overtime in the form of extra pay. In that case, tax must also be paid on this. This is because overtime is taxed in the same tax bracket as normal working hours. In the Netherlands, this is between 37.10% and 49.50% depending on how high the income is.

The overtime paid can therefore cause your employee to end up in a higher tax bracket. When this happens, only the compensation for the overtime falls into the higher tax bracket and he will therefore have to remit more of it.

Visa & Immigration