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Netherlands‌

Basic Economic Summary

Overview

  • Local Languages: Dutch(Official), Frisian, English, Papiamento, Dutch Low Saxon, Lumbergish
  • Capital: Amsterdam, Groningen, Eindhoven, Utrecht
  • Currency: Euro (EUR)
  • Population: 17,280,000 (2020)
  • Date Format: dd/mm/yyyy

Useful Information

  • GDP Per Capita (in USD): 52331.3
  • Exchange Rate (EUR/USD): 1.22
  • PISA Ranking (2018): 16
  • Number of University Graduates (2019): ~ 60,000

*This is based on an estimate made by LinkedIn.

Local Universities

Renowned Universities

University Total No. of graduates Rankings
Wageningen University and Research 3,323 World University Ranking: 115,
University of Amsterdam 2790 World University Ranking: 61
Utrecht University 31,801 World University Ranking: 121
Erasmus University Rotterdam 6,402 World University Ranking: 68
Leiden University 7,800 World University Ranking: 128

Salary Data

Average Salary of Jobs (Per Month)

The table below shows the average salary of some jobs in 2019. Please refer to Robert Walters' Salary Survey 2019 for more information.

Job Title Average Salary Range (in EUR) Average Salary

Range (in USD)

Finance Manager 5,417 - 7,500 6,656 - 9,215
Developer (Contract) 3,583 - 4,750 4,402 - 5,836
Data Specialist (Warehousing/BI/Architect/Science) (Contract) 3,583 - 4,750 4,402 - 5,836
Customer Service Representative (Multilingual) 2,250 - 3,167 2,765 - 3,891
HR Manager 5,833 - 7,917 7,167 - 9,727
Supply Chain Manager (Contract) 3,750 - 5,500 4,608 - 6,758


Talent Sourcing Tips

Taxes

Employer Payroll Tax

Type of Tax Contribution Maximum
Unemployment Insurance (WW) 2.94%-7.94% 2.94 is for indefinite duration of employment
Health Insurance 6.70% 319.545
Child Care Premium 0.50%
Disability Act (WIA & Whk) 8.55% 407.77

The employer payroll tax can be found here.

Employee Payroll Tax

Type of Tax Contribution Max (in EUR)
Old Age Pension(AOW) 17.90% 517.7875
Orphans and widow/widower pension(ANW) 0.10% 2.8925
Long Term Care(WLZ) 9.65% 279.1425
Total Employee Cost 27.65%

Employee Monthly Income Tax

Income Group (in EUR) Tax Contribution (%)
0 - 2,892.67 9.70%
2,892.67 - 5,708.92 37.35%
> 5,708.92 49.50%

The employee payroll and income tax can be found here.

Minimum Wage & Payroll

Minimum Wage

Please refer to here for more information on minimum wage policies in the Netherlands.

Payroll Cycle

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.

Bonus

13th month salary

Dutch Holiday allowance is a mandatory payment by employers of an extra wage to their employees. The standard rate is a minimum of 8% of total wage.

Working Hours & Statutory Leave

Break Hours

If an employee works for more than 5 ½ hours, he is entitled to at least 30 minutes of break time. This may be split into two 15-minute breaks.

If an employee works for more than 10 hours, he must have at least 45 minutes of break time. This may be split into several breaks, each of which must be at least 15 minutes.

A collective arrangement (CAO for example) may include agreements on fewer breaks. But if the employee works for more than 5 ½ hours, he must at least have 15 minutes of break time.

Working hours

Per week during a 4-week period: on average 55 hours per week during a period of 4 weeks; deviating agreements on this can be made in a collective arrangement (CAO for example). But an employee may never work more than 60 hours per week;

Per week during a 16-week period: on average 48 hours per week during a 16-week period. The employee and employer make agreements on what exact hours the employee works per day and per week.

After a working day, an employee must have 11 consecutive hours of non-work time. This rest period may be shortened to 8 hours once in a 7-day period if the nature of the work or the business circumstances require this.

In the event of a 5-day work week, an employee must have 36 consecutive hours of non-work time after the end of the work week.

A longer work week is also possible, provided the employee has at least 72 consecutive hours of non-work time in a period of 14 days. This period may be split into two periods of at least 32 hours each

Overtime pay

No national standard for overtime.

Work on Rest Day

The worker may be entitled to get extra pay or compensatory rest for the performance of work on a public holiday day if so agreed in an individual or collective agreement with the employer.

Public Holidays

The 11 public holidays can be found here.

Leaves

Annual Paid Leave

The statutory number of leave hours per year is at least 4 times the number of weekly working hours.

Sick Leave

Employers have to pay 70% of the employee's normal wages during the first year of illness. If this amounts to less than the minimum wage, he should supplement it up to the minimum wage amount

Employers have to pay 70% of the employee's normal wages during the second year of illness. He does not need to supplement if the amount is less than the minimum wage

Parental Leave

  • Maternity Leave

Pregnant employees are entitled to (in Dutch) 6 weeks pregnancy leave (before the due date) and at least 10 weeks maternity leave (after childbirth). the total of 16 weeks starts from the day after the birth.

If the employee takes less than 6 weeks (but no less than 4 weeks) pregnancy leave before the birth. She can add the remaining amount to her maternity leave after the birth.

If the baby is born later than the due date. The employee's maternity leave begins after the actual birth. The total may therefore be longer than 16 weeks.

  • Paternity Leave

If the partner of an employee gives birth, the employee has a right to 1 week of partner/paternity leave after birth. During this period, 100% of the employee's salary must be paid.

Extended Partner Leave

Partners have the right to up to 5 weeks unpaid leave in the first 6 months after the birth.

The employee must take the standard 1-week's partner leave first and take the extra weeks' leave during the first 6 months after the childbirth.

The employee can spread the leave over a longer period than 5 weeks. The employer has to agree to this.

Adoption/Foster Leave

Employees who have adopted a child or have taken in a foster child, are entitled to 6 weeks adoption or foster leave.

The employee must apply for the adoption or foster leave at least 3 weeks in advance.

Parental Leave

Employees with children aged up to 8 can take unpaid parental leave in the Netherlands.

Offboarding & Termination

Termination Process

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.

Notice Period

The statutory notice period (in Dutch) for an employee is 1 month.

If your employee's notice period is more than 1 month, the employer's notice period has to be at least twice as long.

The maximum notice period for an employee is 6 months.

Severance Pay

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

The maximum amount is €83,000.

Probation period

Minimum of two months for permanent contracts.

For fixed contracts, a minimum of one month's probation is permissible.

A probation period can only be concluded for contracts over six months in duration.

VAT

21%

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