Hiring in Netherlands - How To Hire Dutch Employee

What should I know about hiring in the Netherlands?

If you want your business to flourish and expand into the Netherlands, you must become familiar with the employment practices and learn the rules you must follow in accordance with local legislation.

First and foremost, it is crucial to become acquainted with Dutch labor regulations, which govern working conditions, working hours, minimum salary, holidays, and termination of employment contracts.

Secondly, a signed employment contract outlining the employee’s responsibilities, hours, pay, and benefits is also required. Moreover, employers in the Netherlands are responsible for withholding and contributing to employees’ tax and social security systems.

Why is the Netherlands a good choice for finding remote employees?

The Netherlands has emerged as a prime location for businesses seeking to hire remote workers because of a number of factors. First, the country’s educated labor population places a premium on technology, making it an attractive destination for businesses searching for tech-savvy employees.

Second, the Dutch have an impressive knowledge of the English language, making them well-suited to remote jobs where clear and concise communication is essential.

The country also boasts a robust infrastructure and high internet connectivity, facilitating effective communication and teamwork. Finally, many remote workers share the values of the Dutch work culture, which places a premium on a healthy work-life balance.

How can Native Teams help you hire in the Netherlands

With Native Teams’ employer-of-record solution, businesses may hire employees in any country without establishing a wholly new legal entity, all while remaining in full compliance with the employment regulations of that country. When it comes to employing new employees, paying them, and giving them any other financial incentives, we can assist you in ensuring compliance with all Dutch rules and regulations.

Hire your first Dutch employee with Native Teams.

Legal requirements for hiring in the Netherlands

Minimum wage

The minimum wage in the Netherlands is EUR 1,934.40 per month.

Contributions & taxes

Employer tax

The total cost of employment ranges from 13.46% to 25.72%.

Corporate tax

The Netherlands has a 19% corporate tax rate.

Employee tax

The total cost of employees ranges from 27.65% to 30.35%.

Income tax

The tax authorities classify income in the Netherlands into one of three “boxes” (categories). The amount of tax you owe depends on the type of income you report, which is why each box has its own set of tax rates.

To calculate the salary and taxes in the Netherlands please click here.

Payroll cycle

The Netherlands has a monthly payroll cycle. Payment is normally made on the last day of the month.

Is there a 13th salary in the Netherlands?

A 13th-month salary is not mandatory in the Netherlands.

Labor rules

Probation period rules

Standard practice in the Netherlands calls for a 2-month probationary period, typically determined by the employee’s collective agreement or contract.

Notice period

A month’s notice is required by law in the Netherlands, but this can vary depending on the employee’s tenure:

1-month notice: less than 5 years of service;
2 months’ notice: between 5 and 10 years of service;
3-month’ notice: between 10 and 15 years of service;
4 months’ notice: more than 15 years of service.

Severance pay

Payment is based on a range established in the contract, although it is guaranteed at least 84,000 EUR and is often computed as 1/3 of the employee’s base wage per year of service.

Working hours

The typical work week consists of 36-40 hours, or 7-8 hours daily, Monday through Friday.

Leave and benefits

Public holidays

The Netherlands celebrates 11 national holidays, including:

New Year’s Day
Good Friday
Easter Sunday
Easter Monday
King’s Day
Liberation Day (once every 5 years)
Ascension Day
Whit Sunday
Whit Monday
Christmas Day
Boxing Day

Sick leave

Employees are entitled to 70% of their last earned wage for one year if they cannot work due to sickness. For illnesses that last longer than a year, the WULBZ takes effect. This regulation mandates that 70% of an employee’s income be paid for a maximum of 104 weeks of illness.

Maternity leave & paternity leave

Employees expecting a child are eligible for 16 weeks of paid Maternity Leave, which is split into two periods: prenatal and postnatal.

Prenatal leave: An employee must take a maternity leave of four to six weeks before the employee’s due date;
Postnatal leave: Following the birth of a child, a worker is entitled to an additional 10-12 weeks off.

After the birth of a child, the father or partner is allowed to take one week of paid paternity leave. In addition, fathers are eligible for 5 weeks of unpaid parental leave in the first 6 months of their child’s life.

Other leave

Parental leave

All parents have the right to at least 9 weeks of government-funded parental leave, as long as the time off is used during the child’s first year.

Adoption leave

An employer may request a maximum of 6 weeks of paid adoption leave from the Employee Insurance Agency.

Care leave

Employees in the Netherlands have the right to take (temporary) care leave to tend to a sick child, spouse, or parent. Workers are eligible for short-term care leave twice weekly for up to 12 weeks per year. The company should pay at least 70% of the employee’s regular wage during this time.

Insurance

Health security & private insurance

Anyone who has worked for an employer for at least three months within the previous fifteen months is entitled to free medical and dental care through the Social Security Administration.

*Native Teams can support you in finding the best private insurance in the country. Contact us and we will send a comparison of insurance packages and prices.*

Visa

Relocation and work permits

Native Teams will apply for your work visa in the nation on your behalf and serve as your Employer of Record. All the required documents can be uploaded using our app. Until you have your work and residency visa, Native Teams will support you by providing you with frequent information on the progress.

How long is the visa/work permit process?

2 to 4 weeks depending on the authorities and provided documents.

Which documents do you need?

To apply for a visa/work permit in the Netherlands, upload the documents from our onboarding list (relocation to log in/pricing).

Why use Native Teams for hiring in the Netherlands?

Native Teams lets you employ team members ‘like a local’ meaning you get all the benefits of a global team, wherever you are based. Here are the reasons why you should use Native Teams for hiring:

No paperwork: We will handle all the necessary paperwork for you.
Save on taxes: We help you handle your taxes.
No company set up: You can expand your business using our company entitles.
Online onboarding: We’re here to ensure your onboarding process is trouble-free.
No accounting: We will handle all of your accounting needs, including invoicing, payroll, and more.
Increase your profit: We assist you in growing your business and maximizing your profits.
Compliance expertise: we can assist your company in navigating the regulatory environments and ensure you meet all relevant requirements.
Local support: We can assist you in understanding and complying with the relevant local laws.