Talent Wiki - Netherlands
Your quick guide on talent and labor compliance norms in Netherlands
Capital
Amsterdam
Currency
Euro (EUR)
Languages
Dutch(Official), Frisian, English, Papiamento, Dutch Low Saxon, Lumbergish
Payroll Frequency
Monthly
GDP per Capita
$57,835.73
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
Local Universities
The top local universities in the Netherlands are as follows:
Technische Universiteit Delft
Ranking
Local: 1
World: 117
Universiteit Utrecht
Ranking
Local: 2
World: 119
Universiteit van Amsterdam
Ranking
Local: 3
World: 124
Universiteit Leiden
Ranking
Local: 4
World: 136
Rijksuniversiteit Groningen
Ranking
Local: 5
World: 145
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 | 10,272 |
| Supply Chain Manager | 8,880 | 9,542 |
| HR Manager | 7,200 | 7,736 |
| Data Analyst | 4,470 | 4,803 |
| Developer | 4,560 | 4,899 |
| Customer Service Representative | 1,890 | 2,030 |
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 2023
| Date | Holiday | Type |
| 1 Jan | New Year’s Day | Public Holiday |
| 7 Apr | Good Friday | Public Holiday |
| 9 Apr | Easter Sunday | Public Holiday |
| 10 Apr | Easter Monday | Public Holiday |
| 27 Apr | King’s Day | Public Holiday |
| 5 May | Liberation Day | Public Holiday |
| 18 May | Ascension Day | Public Holiday |
| 28 May | Whit Sunday | Public Holiday |
| 29 May | Whit Monday | Public Holiday |
| 25 Dec | Christmas Day | Public Holiday |
| 26 Dec | 2nd 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
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.
Overtime Pay
There are no specific regulations for overtime pay in the Netherlands. It will depend on what the employer and employee agreed to, in the employment contract.
Bonus
13th Month Pay:
The 13th-month pay is customary in the Netherlands.
Employee Benefits:
- Unemployment Insurance
- Health Insurance
- Child Care
- Leaves
Taxes
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 59,706 |
| 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.
VAT:
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.
