Hire in Netherlands

Here’s where you get started with human resources best practices and hiring in Netherlands.

Ready to Hire? Get Started!

Last updated at June 16, 2022

Currency

Euro (EUR)

Capital

Amsterdam

Time Zone

GMT+2

Key Country Facts

Introduction

The Netherlands (also known as Holland) is a North-western-European country of approximately 17 million inhabitants known for its tradition of liberal social policies and high quality of life. Amsterdam is the country’s most populous city and nominal capital. English-speaking people use the word ‘Dutch’ to describe people from the Netherlands.

Area

The four parts of the Kingdom—the Netherlands, Aruba, Curaçao and Sint Maarten—are constituent countries and participate on a basis of equality as partners in the Kingdom. In practice, however, most of the Kingdom’s affairs are administered by the Netherlands. The vast majority in land area of the constituent country of the Netherlands is in Europe, while its three special municipalities (Bonaire, Saba, and Sint Eustatius) are located in the Caribbean, as are the other three constituent countries.

Climate

The European Netherlands have a mild maritime climate, with moderately warm summers and cool winters, and typically high humidity.

Culture

The Dutch are proud of their cultural heritage, rich history in art and involvement in international affairs. Dutch society is egalitarian and modern. The Dutch have an aversion to the non-essential and ostentatious behavior is to be avoided.

Religion

In the Netherlands, 28% of the population identify as Roman Catholic, 19% identify as Protestant, and 11% identify with some other religion. Nearly half of the population (42%) does not identify with any religion.

Official Language

The language in the whole of the country is Dutch. Apart from Dutch, the inhabitants of the northern province of Friesland also speak their own language ‘Frisian’, which is closer to English than to Dutch.

Netherlands HR at a Glance

EMPLOYMENT LAW

Dutch employment law is elaborate and relatively complex. It is divided into individual and collective law and is closely related to social security law.

Key Points:

  • Employment law is not consolidated into a single code.

  • Employees have a strong legal position.

  • Preventive dismissal assessment.

  • A relatively long period of salary payment during illness.

  • The Balanced Labour Market Act.

EMPLOYMENT CONTRACT

An employment contract under Dutch law may be concluded orally or in writing. However, the employer will nonetheless need to inform the employee in writing with respect to certain conditions pertinent to the employment, including:

  • the name and residence of the parties;

  • the place where the work is to be carried out;

  • the position and a job description;

  • the hiring date;

  • if the employment contract is for a fixed period of time, the time period;

  • the annual leave rights or the method of calculating annual leave allowance;

  • the duration of the notice periods to be observed by the parties or the method of calculating these periods;

  • the salary and the payment intervals;

  • the customary number of working hours per day or per week;

  • the employee’s pension rights (if applicable);

  • the Collective Labour Agreement (if applicable).

Employers have to pay a higher Unemployment Act (WW) premium of 7.94% for all employees without a written employment contract for an indefinite period.

Contract Terms

There is a variety of employment agreements for employees in the Netherlands, with temporary and permanent contracts being the most common. Since January 1, 2020, a temporary contract automatically changes to a permanent contract if an employee has received more than 3 successive temporary contracts or if an employee has had several temporary contracts with his employer for more than 3 years, unless there are other rules in the collective labor agreement.

Fixed Term Contracts

An employment contract can be agreed upon for a fixed period of time (fixed-term contract) or for an unspecified period of time (open-ended/permanent contract). A fixed-term employment contract will automatically convert into an open-ended employment contract if:

  • a chain of temporary employment contracts covers 36 months or more;

  • a chain of three fixed-term employment contracts is continued.

A chain is a series of fixed-term employment contracts that succeed each other with no more than six months in between. This rule is also applicable to employment contracts between an employee and various employers that must reasonably be deemed to be each other’s successors regarding the work performed. It is possible to shorten the interval period of six months to three months in a Collective Labour Agreement, if the nature of the activity so requires. This applies, for example, to seasonal labour.

One month before the termination of a fixed-term employment contract of six months or longer, an employer must notify the employee whether the employment contract will be extended or not, and the employer is also obliged to inform an employee who has a fixed-term contract about vacancies with an open-ended employment contract.

Probation Period / Trial Period

A probationary period must be laid down in writing. No probationary period can be applied in an employment contract with a term of six months or less.

In case of an open-ended employment contract, or an employment contract fixed for a period of two or more years, the maximum probationary period is two months. In employment contracts for a fixed-term of more than 6 months, but less than two years, the maximum probationary period is one month.

The probationary period for both the employer and the employee should be equal. A probationary period is not valid if the employee involved is already employed at the employer, but at a different position and will be carrying out more or less the same work that they have done elsewhere within the company.

Working Hours

In general, an employee is only allowed to work a maximum of 12 hours per day, for a maximum of 60 hours per week. Over a period of 4 weeks the maximum number of working hours is 55 per week. Over a period of 16 weeks the maximum number of working hours is 48 hours per week. The Working Hours Decree provides exceptions and additional measures for certain industries.

The average working week in the Netherlands has 5 days with between 36 and 40 working hours.

Overtime

There is no specific Dutch legislation on compensation for working overtime. Whether overtime will have to be compensated should follow from what was agreed to in the employment contract or established in a Collective Labour Agreement (if applicable). If no stipulations are made, the Courts in a labour dispute, are likely to decide that the employer should compensate an employee for working overtime, because this is what may be expected from a “good employer” in such circumstances.

Health and Safety in the Workplace

The employer is required to use the services of a working-conditions service, an institution that assists the employer with risk assessments, advises the employer on reintegration of sick employees, assists sick employees, and more. Employers are advised to have a proper complaint procedure in place. In addition, employers have the obligation to inform their employees about the right to address health and safety-related matters with the company’s occupational health and safety service agency.

Bonus

There are no mandatory requirements relating to bonus/commission payments and an employer is not obliged to pay bonuses. This differs if the employer and the employee have agreed a certain bonus scheme/plan. Whether bonuses are usual depends on the industry, level and kind of position of the employee.

If an employer chooses to grant bonus payments, all employees must be treated equally for the employer to avoid any discrimination claims. The conditions and criteria under which the employee is entitled to a bonus payment must be objective. A bonus entitlement based on the performance of the employee and/or the company is permissible.

In the Netherlands, the variable part of remuneration in the financial sector is not allowed to exceed 20% of the fixed remuneration. This is stricter than the 100% cap used elsewhere in the EU.

Termination

An open-ended employment contract can be terminated in the following ways:

  • the employer gives notice after receiving permission from a governmental organization;

  • the employee consents after the employer has given notice, without the abovementioned permission;

  • court proceedings;

  • mutual consent (no notice period needs to be observed – although it is usual to do so – and both parties can agree on a reasonable severance package);

  • dismissal because of an urgent reason (if the employee has engaged in such misconduct that the employer cannot reasonably be expected to continue the employment relationship any longer. The urgent reason must be communicated to the other party immediately and the employment contract must be terminated without notice);

  • notice given by the employee (an employee is always permitted to terminate the employment contract with due observance of the applicable notice period).

Employers cannot decide themselves which route to use to make staff redundant. Applications for redundancies on economic grounds, or dismissal on account of long-term incapacity for work, must be made to the Employee Insurance Agency (UWV). The UWV will grant permission only if there is a reasonable ground for dismissal and redeployment within a reasonable period of time is (even after training) not reasonably possible. Permission will not be granted in cases where termination is impossible because of a statutory prohibition against terminating an employment contract by giving notice, for instance, during illness shorter than 104 weeks, pregnancy, or if the employee is a member of the works council.

All other dismissals must be referred to the district court. An employment contract can be terminated by decision of the Court, by filing a petition for dissolution in cases including:

  • frequent and disruptive absence due to illness;

  • unsuitability for the position/underperformance (other than because of illness);

  • culpable acts or omissions of the employee;

  • dismissal based on cumulation ground. The cumulation ground allows an employer to combine different grounds for dismissal, which individually may be insufficient to justify a dismissal. The cumulation ground cannot be applied to dismissals on the grounds of (i) business economics or (ii) due to long-term incapacity for work.

After filing the petition with the competent Court, the employee is offered the possibility to file a statement of defense and the Court will set a date for a hearing, during which the parties can explain their opinions. The Court could grant the request for termination and dissolve the employment contract, or it could deny the request.

Collective Dismissals:

Only in case of a collective dismissal, or if provided by a Collective Labour Agreement, the employer is obliged to notify and consult the relevant trade unions when it reports its intention to implement the dismissal to the Employee Insurance Agency. A Collective Dismissal applies if an employer wants to dismiss 20 employees or more within a term of three months within one of the working areas of the UWV.

According to the Dutch Collective Redundancy (Notification) Act (Wet Melding Collectief Ontslag), the employer must notify the UWV (the Employee Insurance Agency) of its intention to do so. It is also necessary to take into account all employment contracts that will be terminated by mutual consent. After the report has been made, there is a one-month waiting period. No waiting period applies if the report is accompanied by a statement of the trade unions confirming that they were consulted and that they agree with the termination of the contracts.

Frequently, a social plan (e.g. termination packages) is negotiated. There is no legal obligation for the employer to negotiate the content of a social plan with the trade unions. Nevertheless, a social plan often forms an important part of the negotiations with the trade unions, as they will base their support on the content of that plan.

Notice Period

Dutch law provides for the following statutory notice periods for an employer:

  • fewer than 5 years of service: 1 month

  • more than 5 years, but fewer than 10 years of service: 2 months

  • 10 or more years of service, but fewer than 15 years of service: 3 months

  • 15 or more years of service: 4 months

The period of notice to be observed by the employee is normally one month. The employer and the employee may agree a shorter or longer period in writing, up to a maximum of 6 months. In that case, the notice period the employer has to observe must be twice the notice period the employee has to observe.

Employees (and employers) are protected by the law on dismissal. This stipulates among other things that notice may only be given with effect from the end of a month. A different date may be agreed by collective labour agreement or employment contract. Exceptions are possible during the trial period or if there is a substantial reason for doing so (e.g. theft); in that case, contracts may be terminated with immediate effect and without notice.

Redundancy / Severance Pay

Employees who are dismissed are entitled to a transition payment (statutory severance, transitievergoeding) from the first day of their employment contract. An employee will receive a third of the monthly salary per calendar year. The transition payment is capped at EUR 83,000 gross – or if the employee is entitled to a higher annual salary – then one annual salary.

The transition payment is not due if the employee terminates the employment contract, unless this termination is a result of seriously culpable actions on behalf of the employer. Employers can apply for compensation for the transition payment, if they dismiss an employee on the grounds of long-term occupational disability (after two years of sickness).

In case an employment is terminated on the basis of a cumulated dismissal, the Court can grant an extra severance, equal to a maximum of half of the transition payment, in addition to the statutory transition payment that the employee is ordinarily entitled to receive.

Post-Termination Restraints / Restrictive Covenants

Non-compete clauses:

In principle, employing a non-competition clause in a fixed-term employment contract is prohibited, unless the employer has a substantial business interest in including such a clause (which must be substantiated in the employment contract). Non-competition clauses, effective for a certain scope of activities, a certain geographical area and/or for a certain number of years, must be agreed upon in writing. The restriction must be limited to what is reasonably necessary to protect the employer’s business interests. Typically, a duration of one year is considered reasonable. Limitations as to territory and the nature of activities depends on the branch in which the employer operates and the position of the employee.

The employer can enforce the non-competition clause in Court and claim damages from the employee. In practice, a penalty clause is usually agreed upon between the parties on the basis of which the employee has to pay an agreed amount to the employer, if the employee breaches the non-competition clause. If the non-compete clause prevents the employee from being employed elsewhere, the Court may order that the employer has to compensate the employee during the period in which the employer holds the employee to the non-compete clause.

Non-solicitation clauses:

Employment contracts can also contain a non-solicitation clause, which stipulates that the employee is not allowed to solicit their employer’s customers or employees during or after their employment. The employer can enforce the non-solicitation clause in Court and claim damages from the employee. In practice, a penalty clause is usually agreed upon between the parties on the basis of which the employee has to pay an agreed amount to the employer, if the employee breaches the non-solicitation clause.

Timesheets

In 2019, the European Court of Justice stated that companies must set up a system to record the working time of their employees. Thus, employers are obliged to implement an objective, reliable and accessible system that allows recording of the daily workday performed by each employee.

Trade Unions / Collective Agreements

The Social and Economic Council (SER) oversees proposed changes in employment laws and decisions affecting employment. The SER functions as an advisory board and a resource for the Netherlands’ labor agreements, with a council consisting of equal amounts of representatives for employees, employers and independent advisors.

Union membership for workers is not compulsory in the Netherlands, and only 16% of the Dutch are unionized – a low rate compared to other EU countries. In recent years, membership declined slightly, though not significantly. In the Netherlands, labour unions have no official affiliations to political parties but do participate in politics by lobbying and by participating in the SER.

As a result of transparent and institutionalized relations between management and employees, the Dutch experience fewer labour disputes and strikes than EU counterparts.

Tax and Social Security

PERSONAL INCOME TAX

In the Netherlands, worldwide income is divided into three different types of taxable income, and each income type is taxed separately under its own schedule, referred to as a ‘box’. Each box has its own tax rate(s). An individual’s taxable income is based on the aggregate income in these three boxes:

Row 1 refers to taxable income from work and homeownership, and includes the following:

  • Employment income.

  • Homeownership of a principal residence (deemed income).

  • Periodic receipts and payments.

  • Benefits relating to income provisions.

Row 2 refers to taxable income from a substantial interest.

Row 3 applies to taxable income from savings and investment.

Bracket Taxable Income Bracket (EUR) Taxable Income Bracket (EUR) Income Tax Rate (%) Social Security Tax Rate (%)
1 0 35,472 9.42 27.65
2 35,473 69,398 37.35 0.00
3 69,399 Over 49.50 0.00

SOCIAL SECURITY

Social security in the Netherlands can be subdivided into social insurance benefits and social welfare benefits, depending on the source of the funding. Social insurance is funded from the contributions paid by employees. This system is compulsory. All employees are automatically insured and pay a contribution. Social welfare benefits are financed from central governmental funds.

Dutch law requires employers to make certain withholdings from the employee’s salary for income tax purposes and the employee’s national insurance contributions. An employer is furthermore required to pay certain social security premiums for its employees.

Social security consists of 3 components:

  • ER Social Security

  • ER Health Insurance

  • ER Pension

Social Security Charges % Monthly Cap
Div. WGA ((partial) resumption of work) 2.08 4975.50
Unemployment benefit premium 7.70 4975.50
Sick leave 5.94 4975.50
Aof low disability insurance 5.49 4975.50
WKO day-care contribution 0.50 4975.50
TOTAL 21.71  
  % Monthly Cap
Health Insurance 6.75 4975.50

 

Pension %
Premie Scholing Wg 1.02
Sociaal Fonds Wg 0.085
Basic Pension* 2.60

*This kicks in after a waiting period of 8 weeks.

The levy of the national insurance contributions in the Netherlands is capped to a maximum amount of premiums per year and per taxpayer. The rates and maximum amounts are as follows:

Year Rate AOW Rate ANW Rate WLZ Maximum Base Maximum Premium
2022 17.90% 0.10% 9.65% €35,472 €9,597

*The above rates serve as a broad guideline. Actual rates charged will differ.

Employees

Salary Payment

In principle, employer and employee are free to agree to the wages to which an employee shall be entitled, taking into consideration minimum wages and minimum holiday allowances, which are normally adjusted each year. A collective labour agreement, if applicable, may also contain salary scales that are binding on individual employees. Salary is generally calculated monthly in arrears and paid on or around the last working day of the month. The employees’ net pay is almost always transferred to their bank account.

Payslip

The employee will receive a payslip from the employer. This should at least contain the following information:

  • the gross pay;

  • the composition of this amount (basic wage, performance bonus, etc.);

  • deductions by the employer for taxes and contributions;

  • the minimum holiday allowance that applies to the employee;

  • the name of the employer and the employee;

  • the period to which the payment relates (e.g. month/year);

  • the number of hours the employee has to work by agreement.

Annual Leave

Employees are entitled to a statutory minimum number of annual leave days equivalent to four times the weekly working hours. For example, an employee with a full-time workweek of 40 hours is statutorily entitled to a minimum of 20 days leave per year. Most collective labour agreements provide for an amount of holiday that is higher than the statutory minimum. The number generally varies from 20 to 30 days for full-time employees.

Annual leave days will lapse if they are not taken within six months after the year in which they were accrued, unless the employee was not reasonably able to take them, but the scheme applies only in respect to the statutory minimum of annual leave days. In addition, ill employees will be entitled to accrue the same full number of leave days as employees who are not ill.

In addition to annual leave days, employees are entitled to a holiday allowance, which, in general, equals 8% of the annual salary, insofar as the annual salary does not exceed three times the annual equivalent of the minimum wage.

Sick Leave

Employers are obliged to continue to pay the salaries of sick employees for the first two years of illness. The employer is obliged to 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. Most employees in the Netherlands are bound to a diverging clause laid down in either an individual employment contract or a Collective Labour Agreement with clauses that are often more favourable to the employee.

Compassionate & Bereavement Leave

Emergency leave is intended for unforeseen personal circumstances for which an employee has to take time off immediately, for instance, when making arrangements for the care of a sick family member or in the event of a death in the family. The employer must always grant a reasonable request for emergency leave. During this period of leave, the employer is required to continue paying the employee’s salary. Emergency leave and short absence leave are legal leave schemes. If different arrangements have been included in the collective labour agreement or regulations of the works council or employee representation, these arrangements apply.

Short-term care leave

Short-term care leave can be taken to provide essential care to parents, ill children who still live at home or partners. However, this leave is only granted on the condition that the employee in question is the only person who can look after the ill person at that moment in time. During the period of leave, the employer continues to pay 70% of the employee’s salary. If this is less than the minimum wage, the employer pays the minimum wage.

Long-term care leave

If a child, partner or parent of an employee is seriously (i.e. life-threateningly) ill and requires care, the employee can request long-term care leave. During this period of leave, the employer does not have to continue paying the employee’s salary.

Special or extraordinary leave

Special leave and extraordinary leave are not based on any law but are rather provided for in the collective labour agreement (CAO), company scheme or employee contract. There are some differences between the different collective labour agreements, but often special leave is granted as follows:

  • Giving official notice of an intended marriage 1 day

  • Marriage 2-4 days

  • Marriage of a family member 1 day

  • Funeral of a spouse/partner, parent or child 4 days

  • Funeral of a grandparent, brother (in-law) or sister (in-law) 2 days

Holiday entitlement during leave

Holiday entitlement in the Netherlands continues to accumulate while an employee takes leave. The employer may not deduct days taken off for leave from an employee’s holiday entitlement, unless the employee has extra holiday entitlement (more than 4x the number of days worked in a week) and this has been agreed in their collective labour agreement.

Maternity & Parental Leave

Maternal Leave

Work for pregnant women and women who have recently given birth must be organized such that it takes account of their specific circumstances. A pregnant woman is entitled to extra breaks and in principle is not obliged to work nights or overtime. A pregnant woman is also entitled to work in a steady and regular pattern of working hours and breaks. The employee may not undertake any work from 4 weeks prior to the probable date of the birth until 6 weeks after the birth.

Pregnant employees are entitled to 4-6 weeks pregnancy leave (before the due date) and at least 10 weeks maternity leave (after childbirth). If the employee takes less than 6 weeks pregnancy leave before the birth, she is entitled to add the remaining amount (up to 2 weeks) to her maternity leave after the birth.

If the baby is born later than the due date, the employee’s maternity leave begins after the actual birth and the total may therefore be longer than 16 weeks. If the employee is expecting multiple births, she is entitled to at least 20 weeks leave. If the baby goes into hospital directly after birth or during the maternity leave, the employee’s entitlement to 10 weeks maternity leave begins after the baby has left the hospital. If the mother dies in childbirth, her partner is entitled to the maternity leave.

During this maternity leave, the Employee Insurance Agency will pay 100% of the daily wage, up to the maximum daily wage. The maximum daily wage in the Netherlands is currently EUR 219,28.

For the first 9 months after the birth, the woman may interrupt her work to breast-feed or express milk as often and as long as is necessary, up to a maximum of one quarter of her working hours. The employer is obliged to pay her for this time. The employer must provide a suitable room for this.

Partner/paternity leave

If the partner of an employee gives birth, the employee is entitled to 1 week of partner/paternity leave after the birth of their child. During this period of leave the employer must continue to pay 100% of the employee’s salary (based on full-time employment). Partners can choose to take this leave immediately after the birth of their child, or to spread the leave over the first 4 weeks after the birth.

Extended partner leave

Partners are entitled to 5 weeks unpaid leave in the first 6 months after the birth. Employees who take unpaid leave will be able to claim benefits from the Employment Insurance Agency (UWV) for up to 70% of their salary. The additional birth leave must be taken within 6 months of the child’s birth.

Parental leave

Employees with children aged up to 8 years old can take unpaid parental leave in the Netherlands. They are eligible as soon as their employment commences. The employee can take at most 26 times the number of their weekly contractual hours as parental leave. The right of parental leave ends when the child becomes 8 years old. During parental leave the employer is not legally required to pay the salary unless this is agreed in the collective labour agreement (CAO) or employment contract. No holiday entitlements will be built up during the hours of parental leave.

Adoption leave

Employees who have adopted a child or have taken in a foster child, are entitled to 6 weeks adoption or foster leave. The leave applies to both parents. They are entitled to an adoption or foster care allowance. The employee must apply for the adoption or foster leave at least 3 weeks in advance with their employer. They may take this leave spread out over a period of time. The employer may not refuse this, unless their business will face serious problems as a result.

Public Holidays

In the Netherlands, employees are entitled to a number of paid public holidays. There are a total of 10 (11 every 5 years) public holidays in the Netherlands. Whether employees are free from work on public holidays depends on the agreements made between employers and employees in the CAO (Collaborative Labour Agreement) or those in the individual employment contract. There is no substitution if a holiday falls on a weekend.

Public Holidays

Employees are entitled to paid leave from work on public holidays. Local (Municipal or State) holidays may also apply, depending on where the company is based. If the employer demands the employee to work on a holiday, the remuneration paid with respect to the worked holiday must be at least double the regular compensation. Applicable collective bargaining agreements may establish a higher rate for the holiday remuneration.

Benefits to the Employee in Netherlands

STATUTORY BENEFITS

 

The 2 types of insurance schemes in the Netherlands are social insurances against loss of income due, for instance, to unemployment, old age, illness or incapacity for work. The contribution percentages are set twice every year. The schemes are:

 

  • National insurance
  • Employee insurance

National Insurance Schemes

National insurance is compulsory for everyone who works or lives permanently in the Netherlands. The schemes are the following:

  • General Child Benefit Act (Algemene Kinderbijslagwet, AKW)
  • National Survivor Benefits Act (Algemene nabestaandenwet, ANW)
  • General Old Age Pensions Act (Algemene Ouderdomswet, AOW)
  • Long-term Care Act (Wet langdurige zorg, WLZ)

With the exception of the General Child Benefit Act, the Dutch Tax and Customs Administration collects the contributions for these national insurances. Employers withhold these contributions from their employees’ wages (payroll tax), which they subsequently pay to the Dutch Tax and Customs Administration. The Dutch Social Insurance Bank (Sociale Verzekeringsbank, SVB) pays the actual benefits.

Employee Insurance Schemes

In the Netherlands, these employee insurance schemes are compulsory for every employee:

  • Unemployment Insurance Act (Werkloosheidswet, WW)
  • Work and Income (Capacity for Work) Act (Wet werk en inkomen naar arbeidsvermogen, WIA)
  • Sickness Benefits Act (Ziektewet, ZW)
  • Invalidity Insurance Act (Wet op de arbeidsongeschiktheidsverzekering, WAO): only for employees that already received WAO before 1 January 2006

Employers pay the contributions on behalf of their employees to the Dutch Tax and Customs Administration (Belastingdienst). These contributions are part of the payroll tax. Employers pay a low unemployment benefit (WW) contribution for employees with a fixed-term contract and a high unemployment benefit (WW) contribution for employees with a flexible contract. The Employee Insurance Agency (Uitvoeringsinstituut Werknemersverzekeringen, UWV) arranges payment of employee benefits.

 

OTHER BENEFITS

 

Employers may offer their employees benefits in addition to the system of social security insurances and benefits provided by the state, since state benefits have restrictions such as maximum amounts or linked to specific criteria. These supplemental benefits come under the general term of employee benefits.

 

 

Benefit Statutory Requirement Market Practice
Holiday Allowance 8% of salary (paid in May) Follow statutory requirement
Annual Leave Minimum paid leave of 4x the number of days worked per week Provide a total of 25-30 days (20 vacation days are statutory for full-time employment)
Maternity Leave Provide 16 weeks of maternity leave with 4 weeks of leave before the expected date of childbirth Follow statutory requirement
Sick Leave Employer must provide sickness benefits equal to 70% of the employee’s daily wage Supplement short-term sickness benefits up to 100% of the employee’s salary prior to sickness in the first year of illness. Lowers to 70% in the second year of illness
Paternity Leave Provide 1 week of parental leave. As of July 1, 2020 provide 5 weeks of additional parental leave Follow statutory requirement

In addition to the mandatory benefits, employers will often provide a range of benefits to help recruit and retain employees. The most common fringe benefits include:

  • Private Pension Plans

  • Income Protection

  • Transport allowances

  • Group Healthcare Insurance

  • Education reimbursement

  • Flexible working hours / Flexible leave models

Visas and Foreign Workers

GENERAL INFORMATION

Workers who have Dutch nationality or the nationality of another country within the EEA or Switzerland are free to work in the Netherlands without a work permit.

People from outside the European Economic Area (EEA) and Switzerland often need a work permit, of which there are two types:

  • Employment permit (TWV),

  • Single permit (GVVA), also known as a combined residence and work permit.

An employer can only employ someone from outside the EEA and Switzerland in the following cases:

  • the employer cannot find a suitable candidate from an EEA country or Switzerland;

  • the vacancy has been open for at least 5 weeks, or at least 3 months for vacancies that are difficult to fill. The UWV decides whether a vacancy is difficult to fill;

  • the employer has done everything it can to find a worker from the Netherlands, the EEA or Switzerland.

The UWV uses the same criteria to assess applications for a TWV or GVVA. Which of the 2 permits is required depends on how long the foreign national will be working in the Netherlands. Foreign workers can apply for a GVVA themselves, but only employers can apply for a TWV.

Employment permit (TWV):

Some groups of foreign nationals do not need to apply for a single permit, but the employer must still apply to the Employee Insurance Agency (UWV) for an employment permit (TWV). These include employees coming to work in the Netherlands for less than 3 months.

Single permit (GVVA):

Foreign nationals from outside the EEA and Switzerland must apply for a single permit (GVVA) if they are coming to the Netherlands to work for more than 3 months.

GETTING A TAX NUMBER

All residents in the Netherlands should get a Dutch Citizen Service Number (Burgerservicenummer – BSN), the national individual identification number in the Netherlands. This Dutch Citizen Service Number will be used for many official procedures, including housing, work, studies, and taxes.

The BSN is tied to the national register (Basisregistratie – BRP) in the Netherlands. Registering with the BRP is key to getting the Citizen Service Number in the Netherlands. After registering with the BRP, the Dutch BSN will be received, which is necessary for any interactions with the Dutch government or public services, including receiving Dutch social security and healthcare in the Netherlands. This means that the Burgerservicenummer functions as a social security number, a national identification number, and a tax number in the Netherlands.

Public Holidays in 2022

S.No Occasion Date
1. New Year’s Day January 1st
2. Good Friday April 15th
3. Easter Sunday April 17th
4. Easter Monday April 18th
5. King’s Day April 27th
6. Liberation Day May 5th
7. Ascension Day May 26th
8. Whit Sunday June 5th
9. Whit Monday June 6th
10. Christmas Day December 25th
11. Boxing Day / St Stephen’s Day December 26th

Several other holidays are observed, either unofficially at a national level or by official local public observance.

Hire New Talent in Netherlands

Our international hiring services let you hire anyone in any country without the investment needed to establish a local entity.

Get Started