Currency: Euro (EUR)

Capital: Amsterdam

Official language: Dutch

Payroll Cycle: Monthly

Paid Time Off

In the Netherlands, employees are entitled to 20 days of paid holiday a year.

Public Holidays

• New Year’s day
• Easter Monday
• Koningsdag
• Ascension Day
• Pentecost Monday or Whit-Monday
• Christmas
• 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%

Employer Tax

Approx. 18% of employee salary

Employment Contract Details

Contracts should be written. However, they can be oral provided the employer outlines in writing terms and conditions.

Probation Period

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.

Parental Leave

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.

Sick leave

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.

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.

Notice Period

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