Country Payroll Guide Netherlands
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Key Facts
- Capital
- Amsterdam
- Date format
- dd/mm/yyyy
- Currency
- Euro (EUR)
- VAT
- the standard rate is 21%
Contributions
Employers
- Unemployment Insurance
- Unemployment Insurance - 2.70% to 7.70%
- Health Insurance
- Health Insurance - 7.03%
- Health Care Act
- Health Care Act - 7%
- Child Care Premium
- Child Care Premium - 0.5%
- Total Employment Cost
- Total Employment Cost - 22.23%
Employees
- Child Care Premium
- Child Care Premium - 0.50%
- Old Age Pension (AOW)
- Old Age Pension (AOW) - 17.90%
- Orphans and widow/widower pension (ANW)
- Orphans and widow/widower pension (ANW) - 0.10%
- Long Term Care (WLZ)
- Long Term Care (WLZ) - 9.65%
- Total Employee Cost
- Total Employee Cost - 27.65%
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
- 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.
- 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.
- Highly Skilled Foreign Worker – Applies to people with advanced degrees.
- Intra-Company Transfers – For people who are transferred from a company abroad to a branch office in the Netherlands.
- European Blue Card – For those with higher education, a job offer for at least a year, and earnings over a certain threshold.
