Country Payroll Guide Netherlands

Key Facts

Capital

Amsterdam

Date format

dd/mm/yyyy

Currency

Euro (EUR)

VAT

the standard rate is 21%

Contributions

Minimum Wage

Minimum Wage

The minimum wage in Netherlands is 1701.80 EUR per month for employees over 21.

Payroll

Payroll Cycle

Monthly

13th Salary

Not required by law.

Income Tax

Employee Income Tax (1)

0 - 35,129 EUR - 9.45%

Employee Income Tax (2)

35,130 - 68,507 EUR - 37.10%

Employee Income Tax (3)

Over 68,507 EUR - 49.50%

Working Hours

General Working Hours

36-40 hours per week / 7-8 hours per day / 5 days per week.

Overtime

No legal requirement for additional payment. Terms are usually agreed upon employment contracts.

Leave

Paid Time Off

Min 20 days per year. Employers are obligated to provide a holiday bonus of at least 8% of the employee’s gross salary. The bonus is usually paid in May or June.

Public Holidays

8 days.

Sick Days

70% of employee’s most recent wage level, up to a maximum period of 2 years.

Maternity Leave

4-6 weeks leave before birth, and 10 weeks of leave after birth.

Paternity Leave

1 week following the birth and can be taken any time in the first 4 weeks after the birth of the child.

Parental Leave

Generally unpaid. Each parent may take off 26 times their weekly working hours.

Other Leave

Adoption leave: 6 weeks Short-term care leave: Maximum of 2 x the working hours of an employee a year Long-term care leave: Maximum of 6 x the working hours of an employee a year.

Termination

Termination Process

Employer has 5 ways to terminate employee:

• termination by mutual consent – by means of a settlement agreement
• termination proceedings before the Employee Insurance Agency
• termination proceedings before the cantonal court
• termination with the consent of the employee
• urgent dismissal

Notice Period

Depends on the duration of the employment contract, with a maximum of 4 months:

• Less than 5 years: 1 month
• Between 5 and 10 years: 2 months
• Between 10 and 15 years: 3 months
• 15 years or more: 4 months

Severance Pay

Transition payment: employee is entitled to a severance payment in the event of dismissal at the initiative of the employer. The amount of the transition allowance for employee is 1/3 monthly salary per entire year of service from the first working day.

Probation Period

Depends on employee contract, but never exceed 2 months. This applies for both parties.

Visa

Employment Visa

1. TWV work permit – Those who are planning to work in the Netherlands for 90 days or less require a Short-Stay Schengen Visa combined with a TWV work permit.
2. Single Permit (GVVA) – Employees planning to work in the Netherlands for more than 3 months can request a Single Permit, which is a combined resident permit and work permit.
3. Highly Skilled Foreign Worker – Applies to people with advanced degrees.
4. Intra-Company Transfers – For people who are transferred from a company abroad to a branch office in the Netherlands.
5. European Blue Card – For those with higher education, a job offer for at least a year, and earnings over a certain threshold.