Hire employees in Netherlands No entity needed.
Usually, to hire in 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.
Netherlands also treats contractors differently than full-time employees, so misclassifying a contractor could lead to fines. Deel lets you hire employees in Netherlands quickly, easily, and compliantly. We even automate tax document collection, payroll, benefits, and more.
All the necessary benefits for Netherlands built right in
Deel allows you to provide localized benefits for employees in Netherlands within minutes. All in one manageable online dashboard.
- Health Insurance
- Unemployment Insurance
Currency: Euro (EUR)
Official language: Dutch
Payroll Cycle: Monthly
Paid Time Off
In the Netherlands, employees are entitled to 20 days of paid holiday a year.
- New Year’s day
- Easter Monday
- Ascension Day
- Pentecost Monday or Whit-Monday
- St. Stephens
Additional regional holidays may also apply.
Individual Income Tax
The individual income tax depends on many variables, such as marital status, level of income, etc. The average ranges from 9.7% to 49.5%
Approximately, 30.81% of employee salary
Employment Contract Details
Contracts should be written in Dutch. However, they can be oral provided the employer outlines in writing terms and conditions. Fixed contract can only be for 3 years.
The maximum probation period is 2 months and it must be laid down in writing. No probationary period can be applied in a contract with a term of six months or less.
Minimum Wage Requirements
The Minimum Wage is EUR 1,635.60 per month.
Maximum working hours and overtime
The average working week in the Netherlands has 5 days with 36 to 40 hours.
Bonus and expense payments
There are no mandatory requirements relating to bonus/commission payments, provided it was not defined in the employment contract.
Employees with children up to 8 years old can take unpaid parental leave in the Netherlands. They are eligible as soon as their employment commences. During parental leave the employer is not legally required to pay the salary unless it is agreed in the collective labor agreement or employment contract. No holiday will be accrued during the hours of parental leave.
- Maternity Leave: employees are entitled to 16 weeks. During this period, the Employee Insurance Agency will pay 100% of the daily wage, up to the current maximum daily wage.
- Paternity Leave: employees are entitled to 1 week of partner/paternity leave after childbirth. During this period, the employer must continue to pay 100% of the employee's salary. Partners can choose to take this leave up to 4 weeks after the birth.
Employers are required to pay the salaries of sick employees for the first 2 years of illness. The employer must pay 70% of the employee’s salary, but during the first year of sickness payment cannot be less than the minimum wage. For the second year, the minimum wage limit does not apply.
Termination requirements for employees in
Employers need approval from the local authorities to terminate employees. They will assess the requirements for termination to approve or reject dismissal. An employment agreement can also be terminated with immediate effect during a trial period.
Termination costs are a minimum of 1 month and a maximum of 6 months’ salary according to seniority. Any not taken holidays must be paid out upon termination.
In the Netherlands, the severance is based on the length of the labor relationship. This is only paid if employer terminates the contract
- 1 year relationship - 1 month severance
- 2 to 4 year relationship - 2 months severance
- more than 4 year - will depend on other parameters
In the Netherlands, the notice period is based on the length of the labor relationship:
- Up to 5 years of employment - 1 month's notice
- 5 - 10 years of employment - 2 months' notice
- 10 - 15 years of employment - 3 months' notice
- 15+ years of employment - 4 months' notice
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