Hire employees in

the Netherlands, hassle-free

Hire employees in the Netherlands, hassle-free

With Deel, your business can easily hire employees in the Netherlands. No more worrying about local laws, complex tax systems, or managing international payroll. Deel takes care of everything in 150+ countries.

The average onboarding time frame in the Netherlands is 1 day with Deel.

Download the Guide

Currency

Euro (EUR)

Capital

Amsterdam

Official Language

Dutch

Payroll Cycle

Monthly

Hire employees in the Netherlands. No entity needed.

Usually, to hire in the Netherlands, your business needs an entity. That means a local office, an address registered as a subsidiary, and an account with a local bank. All of this, plus navigating regional benefits, payroll, tax, and HR laws, can take months.

the Netherlands also treats contractors differently than full-time employees, so misclassifying a contractor could lead to fines. Deel lets you hire employees in the Netherlands quickly, easily, and compliantly. We even automate tax document collection, payroll, benefits, and more.

All the necessary benefits for the Netherlands
built right in

Deel allows you to provide localized benefits for employees in the Netherlands within minutes. All in one manageable online dashboard.

  • Pension
  • Public Health Care
  • Unemployment Insurance
  • Private Healthcare - Unisure (optional)

Our quickstart guide to hiring in the Netherlands

Navigate the tabs below to learn everything you need to know about hiring an employee in the Netherlands

Minimum Wage Requirements

In the Netherlands, the minimum wage is €1,725 per month for employees 21 years and older. Minimum wage is lower for employees 20 years and younger: 

Individual Income Tax

The individual income tax ranges from 37.07% to 49.50%. Income tax is calculated according to progressive rates. Multiple additional factors may impact overall rates such as the household status and the number of children.

Gross Annual Income Applicable tax rate
Up to EUR 69,397 37.07 %
Over EUR 69,398 49.50 %

Employer Cost

The employer cost is generally estimated at 25% -35% of the employee salary. 

  • Holiday Allowance - 8.0%
  • Unemployment tax - 2.70%-7.7%
  • WGA and ZW - Disability and Sickness social security - 1.52%
  • ZVW - Healthcare contribution - 6.75%
  • Disability - 7.05%
  • Child care - 0.50%
  • Severance - 1.5%
  • Contract Labour Service - EUR 15.00
  • Worker Insurance - EUR 112.00

Overtime Pay & Maximum Hours

Overtime payment is not mandatory. 
Standard working hours are 8 hours per day, 40 hours per week. The standard workweek is from Monday to Friday. 

Maternity Leave

Pregnant employees are entitled to 16 weeks of paid leave. Six weeks must be taken before the child's birth. The employee will receive 100% of their average salary during this period, and Social Security will be responsible for this pay.
 
The employee can extend leave an additional four days at 100% pay if they have multiple births.

Paternity Leave

Employees are entitled to one week of paid paternity leave. The leave can be used any time in the first four weeks after the birth of the child. The employee will receive 100% of the salary during this period, and Social Security will be responsible for this pay. 

The employee can extend leave an additional five weeks at 70% pay.

Parental Leave

Employees with a child under eight are entitled to up to 26 times the number of hours they work per week of parental leave. Either parent can take parental leave. Parental leave is unpaid.

Sick Leave

Employees are entitled to paid sick leave for up to two years. This leave is paid at 70% by the employer.

Termination Requirements

Terminations in the Netherlands can be complex. To terminate a contract from the employer’s side, the company must have a valid and proven reason and present and get approval from Employee Insurance Agency before communicating it to the employee. 

Compliant terminations include:
  • Voluntarily by the employee
  • By mutual agreement
  • Unilaterally by the employer based on:
    Probation period
    Objective grounds (economic reasons, unable to work for more than two years, etc.)
    Disciplinary dismissal
  • By the expiration of the contract

Terminating an employee for underperformance is complex:
  • Underperformance does not automatically/immediately qualify as a justified reason for termination;
  • Underperformance needs to be adequately addressed by the employer, meaning that there should be a proper performance file in place;
  • An appropriate file of performance means a substantiated file in which (among other things) the underperformance is made clear to the employee. Suitable measures need to have been taken by the employer to make it possible for the employee to be a better performer, proper support needs to have been given by the employer, etc.

Notice Period

The minimum notice period is one month and will be increased according to the length of the employment. 

  • Up to 5 years of employment - 1 month notice
  • 5 - 10 years of employment - 2 months notice
  • 10 - 15 years of employment - 3 months notice
  • 15+ years of employment - 4 months notice

Severance for Employees

In the Netherlands, all employees who are terminated are entitled to severance pay. Severance pay varies depending on the length of service: 
  • 0-2 years relationship - 1 month severance
  • 2 to 4-year relationship - 2 months severance
  • more than 4 years - will depend on other parameters

Paid Time Off

Both full-time and part-time employees are entitled to 20 working days of paid time off (PTO) a year. PTO accrues monthly at 1.67 days per month. Employees are eligible for annual leave after 1 month of work.

Public Holidays

The Netherlands celebrates 11 national and many regional holidays based on the location of the employee. 

National public holidays include:

  1. New Year’s Day
  2. Good Friday
  3. Easter Sunday
  4. Easter Monday 
  5. King’s Day
  6. Liberation Day
  7. Ascension Day
  8. Whit Sunday 
  9. Whit Monday
  10. Christmas Day
  11. Boxing Day

Onboarding

Onboarding takes one business day.

Employment Contract Details

Contracts must be in Dutch and can be bilingual. They must be in writing and signed by both parties. Fixed contract can only be for three years.

A contract must include: 

  • Name
  • Start date
  • Length of the employment
  • Job description
  • Termination conditions

Probation Period

Employees hired using Deel have a probation period of 30 days, which you can extend up to 180 days for managerial positions and specialized technical roles. As of January 2022, it's Deel company policy to include probation periods in all employment contracts moving forward.


Probation periods help an employer and the employee ensure they're a hiring match, allowing a company to quickly decide if it's a fit and the employee to see if the job aligns with their career goals.

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Download the complete guide to hiring in the Netherlands

Simply fill out your details below to gain access to our complete guide to hiring in the Netherlands.

Hiring in the Netherlands, hassle-free

With Deel, your business can easily hire employees in the Netherlands. No more worrying about local laws, complex tax systems, or managing
international payroll. Deel takes care of everything in 150+ countries.

Group (8)

599 USD

Management fee

Group (9)

25-35%

Estimate Employer Cost

*of employee salary

Want to learn the cost of hiring an employee in the Netherlands?

View our Employee Cost Calculator

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