Employer of record in the Netherlands: costs, rules and how to hire
Hire someone in the Netherlands without opening your own Dutch company.
An employer of record (EOR) can handle local employment while you manage the person’s work. Start by confirming the provider’s coverage and the arrangement available for your specific hire.
By Employ Borderless · We help you understand and compare EOR services.
Start with our hiring overview, then use the guide to plan your offer and costs.
Use the dated guidance below for current rates and requirements.
Watch on YouTubeHow does an employer of record in the Netherlands work?
Three parties, two contracts: the EOR employs the person under a local employment contract, your company signs a service agreement with the EOR and directs the day-to-day work. Which arrangement is legal and sensible in the Netherlands is decided by the questions below.
Your company
Choose the person, agree their role and manage their daily work.
The employer of record
Handles the agreed employment, payroll and HR services through the employing entity named in your contract.
Your employee
Works with your team under a local employment contract with the EOR’s employing entity.
- Do you already have an entity in this country?
- How many people are you hiring, and for how long?
- Is the work genuinely independent, or is it a job?
- Who carries the employment risk if the arrangement is challenged?
What each route means in full
- Your own entity
- Choose it when: You already have a company here, or you are committing to a substantial local team for the long term.You become the legal employer. You arrange payroll, benefits, filings and employment support yourself, and you carry the setup and running cost.
- Employer of record
- Choose it when: You have a person to hire here, want them employed properly, and do not want to open a company for it.The provider is the legal employer through its own entity. You direct the work and pay one invoice covering salary, employer costs and the service fee.
- Independent contractor
- Choose it when: The work is genuinely independent: their own business, their own methods, their own clients.A contract for services, not employment. The label does not decide the status; how the person actually works does, and getting it wrong is reclassified after the fact.
Hiring in the Netherlands: the short version
A Dutch employer normally continues at least 70% of salary for up to two years of sickness, with a minimum-wage floor in the first year, and carries reintegration duties for the whole of it. Nothing else here is as expensive or as poorly understood, and it does not go away because a provider runs the payroll. Budget for it before the fee.
The second thing to settle is which collective labour agreement, or CAO, applies, because it sits above the statutory floors on pay, hours, leave and pension. Payrolling has its own rules on equal employment terms and pension provision, so ask which Dutch arrangement the provider uses and what it means for your role rather than accepting the EOR label as an answer.
Your first hire in the Netherlands in five decisions
Five things settle a Dutch hire, and the numbers behind each are set out further down this page.
- Entity or EOR. There is no headcount at which an entity becomes cheaper, so compare a real provider quote against the cost of running your own employment operation for the roles you actually plan.
- Employee or contractor. The actual working relationship decides self-employment, both parties have to assess it, and enforcement resumed on 1 January 2025 with payroll-tax assessments for false self-employment.
- Budget line. Holiday allowance of at least 8% of gross eligible pay sits on top of salary, alongside the 6.10% employer Zvw levy in 2026 up to €79,409 of contribution income, pension and other employer insurance.
- Notice reality. One month below five years of service, rising to four months at fifteen, plus a valid ground and the right route, and a transition payment of one-third of a month's salary per year from day one.
- Realistic start. After contract review, identity and work-eligibility checks, the pension arrangement and the payroll cut-off, not on a date the sales process offered.
EOR, entity, or contractor in the Netherlands?
Under payrolling rules the employee must receive at least the terms of comparable direct employees, and where you have no Dutch staff, the terms for similar work in the sector apply instead. That single rule sets the floor on what this hire costs, well before the service fee is discussed. So the useful question for a provider is not what it charges but which comparison it is using.
What to check before choosing an EOR
Give the provider enough information about the role and your working conditions to make that comparison properly, then request a quote showing base salary, holiday allowance, employer insurance charges, pension, additional benefits and the EOR fee as separate lines.
Ask who funds sick pay, reintegration support and termination costs under the service agreement. Those costs do not disappear because a provider administers the employment; they only become someone else's line item, and the contract decides whose.
Moving from an employer of record to your own Dutch entity
Assume nothing carries over automatically, and negotiate what carries over before you sign the service agreement rather than at the exit. Hirers usually make this move when the Dutch team stops being one hire and starts being a function, or when the collective agreement and the pension scheme make the provider's terms an awkward fit. The mechanics are that the provider's employment ends and your entity's begins, which means a termination and a new contract unless you have agreed something else in writing.
That is why the exit terms matter more than the monthly fee. Four things are worth settling in the service agreement: whether the provider will cooperate with a transfer to your entity at all, who pays the transition payment and the accrued holiday allowance if the employment ends instead, how accrued leave and the pension record are handed over, and what notice you owe the provider. Ending the provider's service is a separate act from ending the person's employment, and the section on what catches employers out sets out why conflating the two is expensive here.
There is a Dutch rule after all, and it is stronger than most hirers expect, so it is worth reading before you plan the move. By the transfer of an undertaking, the rights and obligations that at that time arise for the employer in that undertaking from an employment contract between him and an employee working there pass by operation of law to the acquirer. That employer nevertheless remains jointly and severally liable with the acquirer, for one year after the transfer, for the performance of the obligations under the employment contract that arose before that time. A transfer, for that section, means the transfer, pursuant to an agreement, a merger or a division, of an economic unit that retains its identity. Source: Civil Code Book 7, articles 663 and 662, wetten.overheid.nl, checked 18 September 2026.
Behind that national rule sits the European floor it transposes, which is worth knowing because it is what a national court reads the national words against: the transferor's rights and obligations arising from a contract of employment or from an employment relationship existing on the date of a transfer shall, by reason of such transfer, be transferred to the transferee. The directive also lets member states make the transferor and the transferee jointly and severally liable for obligations that arose before the transfer, and it says in terms that a transfer is not in itself grounds for dismissal by either of them. Source: Council Directive 2001/23/EC, article 3 (1), CELEX 32001L0023, official text published by the Publications Office of the European Union, checked 18 September 2026. The national text is the one that binds your entity, so read the two together rather than the directive on its own.
Two things follow for a move like yours. The rule is automatic where it applies, which means nobody has to agree to it and the provider cannot contract out of it on the employee's behalf. And it hangs on "an economic unit that retains its identity", which one person coming off a payrolling arrangement usually is not. So put your own facts to a Dutch adviser, and until you have that answer treat the seniority, the notice entitlement and the leave balance as things you agree and document rather than things you inherit.
How to hire employees in the Netherlands
An EOR can employ your hire through its Dutch employing entity while your team directs the work, and where the arrangement meets the Dutch payrolling definition, official rules give payroll employees the same core protections as direct employees. The detail that matters is the name of the employing entity in the contract. Ask for it, and for how the arrangement applies to your particular role.
One liability is worth knowing before you sign: a Dutch payroll company handles the employment administration, but the client can still face liability if payroll taxes go unpaid. Confirm the provider's registrations and ask how it manages tax-payment and employment risk. The Dutch government's payrolling guidance explains those responsibilities.
How long the first hire takes, and what sets the date
I am not going to give you a number of weeks, because the honest answer is that one dependency sets the date and the rest are quick. For a Dutch hire it is either the collective agreement question or, where the person needs permission to work, the immigration procedure.
So rather than a number of weeks, here is the sequence, in the order the steps actually gate each other. Work backwards from whichever one is unresolved in your case, because that is the one holding your date and the rest will not be.
- Settle which collective agreement applies, because it sets pay scales, notice and often pension, and a provider cannot price the hire until that is answered.
- Agree the written terms and the start date, with the probation length that the contract type allows.
- Confirm the right to work, and where a permit or a residence procedure is needed, treat that as the critical path rather than a formality.
- Register the person for payroll and pension with the employing entity, and check the pension start date against the scheme's own rules.
- Land the start date on the provider's payroll cut-off, so the first payslip and the holiday-allowance accrual begin in the month you expect.
If you need someone working next week, the honest answer is that an existing right to work is what makes that possible, and nothing the provider does can compress an immigration procedure.
What should you budget for hiring in the Netherlands?
Your budget includes salary, employer contributions, agreed benefits and the EOR fee. Ask for a quote for the actual role and salary.
- Gross salary
- Employer contributions
- Benefits and other costs
- EOR service fee
- Gross salary: 100
- Employer social contributions: 16.97%
- Benefits and EOR fee: quoted per hire
The numbers behind this figure
| Cost | Amount |
|---|---|
| Gross salary | 100 |
| Employer social contributions | 16.97% |
| Benefits and EOR fee | Quoted per hire |
Source: Employ Borderless research, 2026
Published EOR base fees among providers covering the Netherlands range from $99 to $699 per employee/month. These are provider base prices, not a quote for this hire or the total employment cost.
Employer contribution benchmarks · 2025
These stored OECD benchmarks help with initial planning. Earnings ceilings, employee circumstances and later changes can affect the actual charge; use the EOR’s itemised quote for your budget.
| Contribution | Rate |
|---|---|
| Employer social contributions | 12.604144% |
Salary benchmarks for budgeting
CBS reports €26.90 gross per hour for 2025, provisional, for employees aged 15 to 74 excluding the institutional population, and the measure excludes special rewards and overtime pay. It is a national median, not an average and not a role-specific offer, and the CBS table also breaks down by occupation and skill level.
Employer payroll costs and employee deductions
Keep employee deductions separate from costs the employer adds. The EOR withholds the relevant wage tax and national insurance and arranges employer insurance payments.
Ask the provider to show the other employee-insurance premiums and the pension contribution beside that levy, including any earnings ceilings. Historical OECD contribution benchmarks elsewhere in this guide keep their data year and are useful for comparison rather than as a current payroll calculation.
What an employer of record adds to the employment cost
Budget the provider fee as a third line, next to gross pay and the employer contributions above. Across the market it runs from $99 to $799 per employee per month, or 8 to 20% of salary, and where a quote sits in that range is decided by the work rather than by the country: headcount, how much of the administration you hand over, and whether the provider is pricing a single hire or a team. I treat a quote at the bottom of the range as a question rather than a win, because the cheap number is usually the one with the fewest things inside it.
What the fee buys is the employment itself: the employing entity, the payroll run, the filings and the employer-side administration. What it does not buy is the cost of employing the person. Gross pay, the employer contributions, the holiday allowance and the pension arrangement are yours whoever runs the payroll, and a payrolling provider has to give equal terms, so the fee sits on top of a cost base that does not fall because a provider holds the contract. Ask for a quote that separates the fee from the pass-through costs, priced in euro, because a single blended figure hides which half moves when pay changes.
Average salary in the Netherlands by occupation
Gross monthly earnings of employees per ISCO-08 occupation group, in EUR, from the ILO's official labour statistics. These stored survey figures for the Netherlands have reference year 2025. Use these survey earnings to benchmark an offer before an EOR quote turns it into total employer cost.
| Occupation group | Monthly (EUR) | Approx. USD |
|---|---|---|
| All occupations | 5,666 | $6,402 |
| Managers · ISCO 1 | 9,724 | $10,989 |
| Professionals · ISCO 2 | 6,797 | $7,681 |
| Technicians and associate professionals · ISCO 3 | 5,480 | $6,192 |
| Clerical support workers · ISCO 4 | 4,373 | $4,941 |
| Service and sales workers · ISCO 5 | 3,347 | $3,782 |
| Skilled agricultural, forestry and fishery workers · ISCO 6 | 3,521 | $3,979 |
| Craft and related trades workers · ISCO 7 | 4,749 | $5,366 |
| Plant and machine operators and assemblers · ISCO 8 | 4,818 | $5,444 |
| Elementary occupations · ISCO 9 | 3,049 | $3,446 |
Source: ILOSTAT, the International Labour Organization's statistics database (average monthly earnings of employees, both sexes), reference year 2025.
How to hire through an EOR in the Netherlands
- Step 1
Define your hire
Prepare the role, work location, salary, working hours and target start date.
- Step 2
Confirm the local hiring route
Ask the provider to confirm that its employing arrangement fits this role and location, including any restrictions.
- Step 3
Review the full quote and contract
Check the legal employer, total costs, benefits, responsibilities and exit terms before signing.
- Step 4
Complete onboarding
Coordinate employment documents, required checks, equipment and the payroll cut-off with the EOR.
- Step 5
Keep employment changes coordinated
Manage the work and tell the EOR about proposed pay, leave, contract or termination changes before they take effect.
What should the EOR arrange before your hire in the Netherlands starts?
Confirm the employment terms, work eligibility, payroll and pension arrangements before the start date. Ask which local rules and agreements apply to your employee.
What catches employers out in the Netherlands
Cancelling your contract with the payroll company is not a ground for dismissing the employee. That is the single most expensive misunderstanding in Dutch EOR arrangements, and it catches people at exactly the moment they think the problem is solved. Two others sit close behind it: the pension entitlement and the two-year sickness obligation.
Pension arrangements for payroll employees
Payroll employees are entitled to an adequate pension arrangement. They can join the hirer's scheme, or the payroll company can provide one meeting the legal conditions, so confirm the actual fund, contributions and covered earnings.
The quote should identify the pension scheme, eligible pay, employee deductions and employer contribution. An optional benefit policy written for another country does not fit Dutch payroll employment.
Ending the EOR service is separate from ending employment
Discuss a planned exit before anyone notifies the person, and have the EOR explain the dismissal route, notice, unused leave and any transition payment. The service contract and the employment contract end by different mechanisms and on different timetables.
Plan for sickness before it happens
The employer normally keeps wage-continuation and reintegration responsibilities through long-term sickness, so decide in advance who coordinates with the company doctor or occupational health service, who funds the costs and how your team supplies suitable work. Medical information needs careful handling: the government guidance is explicit that an employer must not ask the employee the reason for the illness.
What types of employment contracts exist in the Netherlands?
Key employment details must be given in writing within one week and the remaining terms within one month, even though a Dutch contract can be agreed verbally. That timetable is tighter than most foreign employers expect, and some terms, including probation and restrictive clauses, are not valid at all unless they are written. What decides the substance of the contract is the applicable CAO, which sits above the statutory floors.
Employment contracts and the applicable CAO
Identify the legal employer, pay, hours, contract duration and the applicable CAO, pension and leave terms, and have the EOR issue a written offer and contract before work starts. Check job duties, work location, salary components, normal hours, overtime arrangements, leave, pension and the process for ending employment.
Permanent and fixed-term contracts
The usual limit is three successive temporary contracts within three years: a fourth contract, or a chain exceeding three years, becomes indefinite, generally counting gaps of six months or less. Successive employers, CAO variations and statutory exceptions all matter, so track earlier contracts and any transfer from another employer doing the same work: a third temporary contract does not become permanent merely because it is the third.
Probation
There is no probation at all on a temporary contract of six months or less. The usual maximum is one month for a longer temporary contract under two years, and two months for a permanent contract or a temporary term of at least two years, with CAO variations possible.
On-call arrangements
On-call work normally needs four days' notice, which a CAO may reduce to one, and after twelve months of continued employment you must offer fixed hours based on the preceding year's average. The employee can decline, so this is not automatic permanent employment. Check call-up notice, cancellation pay, minimum paid hours and holiday accrual before using a zero-hours or min-max arrangement.
Contractors, confidentiality and restrictive terms
The actual working relationship decides whether someone is self-employed, both parties must assess it, and a contractor agreement on its own is not enough: enforcement resumed on 1 January 2025 and false self-employment can lead to payroll-tax assessments.
A non-compete needs written agreement with an adult employee and must not unreasonably restrict future work, and on a fixed-term contract it needs explicitly justified legitimate business interests. Proposed tighter rules are not current law. Agree confidentiality and intellectual-property responsibilities with the actual employing entity, and have the ownership and transfer wording reviewed locally rather than assuming one standard clause covers every kind of work.
False self-employment, and what the Tax Administration does about it
This is the risk I would price first for a Dutch hire, because the Netherlands moved from writing rules to enforcing them. Since 1 January 2025 the Netherlands Tax Administration has been checking whether people working as zzp'ers are genuinely self-employed. False self-employment means someone carries out an assignment as a self-employed professional but is actually an employee, for example because they cannot decide themselves when or how to do the work, so the client is actually the employer and is not paying payroll taxes. Source: business.gov.nl, avoiding false self-employment, checked 18 September 2026.
The consequence is an assessment rather than a court case. If the working arrangement is in fact employment, you may be liable for an extra tax assessment, and that assessment will not reach back further than 1 January 2025 unless you deliberately acted in error or failed to follow the Tax Administration's instructions. Fines are the narrower risk: in 2026 you will generally not be fined, and fines are reserved for wilful misconduct or gross negligence. The Tax Administration also no longer assesses new model agreements, so a fresh template is not the reassurance it once was. Source: business.gov.nl, avoiding false self-employment, checked 18 September 2026.
What a hirer does about it is unglamorous and works. Assess the relationship with the other party before the work starts rather than after, write down which side decides when and how the work is done, and where the answer is that you do, hire the person as an employee through whichever route you prefer. A contractor agreement that describes independence the work does not have is the document that loses the argument.
Payroll frequency and payslips
Ask for the payroll calendar and a sample payslip showing gross pay, deductions and net pay, and confirm the cut-off for changes: a date such as the 25th is one provider's arrangement, not a universal Dutch payday.
Agree the pay period in writing: monthly, weekly and four-weekly payment are all possible, pay follows the period worked, any permitted postponement needs contractual agreement, and the net minimum wage must be paid through a bank.
What taxes and social contributions apply in the Netherlands?
The employer Zvw levy is 6.10% in 2026, with maximum contribution income of €79,409, and that is one payroll charge rather than the total employer rate. Dutch employer cost is genuinely hard to state as a single percentage, because the rest depends on the employing entity, contract, earnings and coverage. Anyone quoting one average social-contribution figure is guessing.
Income tax on employee pay
For people aged 66 or younger in 2026, Box 1 marginal bands are 35.75% through €38,883, 37.56% above that through €78,426, and 49.50% above €78,426, with the first band already including national insurance. Credits, deductions and AOW status change the result.
For people below AOW pension age throughout 2026, national insurance rates are AOW 17.90%, Anw 0.10% and Wlz 9.65% up to €38,883 of relevant income. Those are inside the first Box 1 band, not an extra flat deduction across the whole salary, which is a common misreading of a Dutch payslip. Ask for a pro forma payslip for the employee's circumstances, because credits, residency, pension deductions and any approved expat scheme all move the number.
State pension age
State pension age depends on birth date: 67 for births from 1 March 1957 through 1960, and 67 years and 3 months for births from 1 January 1961 through 30 September 1964. Ages for later births are still provisional in the reviewed SVB table.
Work eligibility and immigration
Check identity and right to work before the start date. Workers from the EEA and Switzerland generally need no Dutch work permit; other situations depend on the person and the immigration route, and an EOR agreement is not immigration permission.
For the highly skilled migrant route the employer must be recognised by IND, and sponsor duties, market-rate salary and immigration requirements all remain in force when a payroll company supplies the employee to a client. For a first application in 2026 the monthly gross salary thresholds excluding holiday allowance are €5,942 at age 30 and over, €4,357 under 30, or €3,122 under the qualifying reduced criterion, with specific age and timing rules for extensions and employer changes. Confirm the provider's current recognised-sponsor status: the IND's reviewed explanation allows recognised sponsors to supply workers through payrolling, and this guide does not repeat the unsupported claim that such permits carry a two-year non-renewable limit.
What pay and leave should your offer in the Netherlands cover?
Agree pay, working patterns, paid leave and benefits as part of the offer. These affect both your hiring budget and how you plan the employee’s work.
- Paid annual leave: 20 days
- The rest of the year: 345 days
The numbers behind this figure
| Entitlement | Days a year |
|---|---|
| Paid annual leave (statutory minimum) | 20 days |
| Public holidays (national) | 11 days, not required as paid days off |
| Total statutory paid days off | 20 days |
Source: National government, 2026; National government, 2026. Statutory minimums. Eligibility, accrual and collective agreements can change what an individual employee receives.
How does payroll and compensation work in the Netherlands?
The statutory minimum is €14.99 gross per hour from 1 July 2026 for employees aged 21 and over, and there is no fixed monthly minimum at all: the monthly figure depends on the applicable working hours. That is the first thing to get right when you turn an hourly floor into an offer, and the second is that a CAO may set a higher wage for the role. Youth rates differ again.
Minimum pay for your Dutch hire
Confirm the employee's age, applicable scale and working hours before quoting a monthly salary, and use the July 2026 age table rather than January's youth rates.
Holiday allowance and bonuses
Holiday allowance is the line foreign employers forget. The usual statutory minimum is 8% of gross eligible pay including overtime, it is separate from paid holiday time and from any year-end bonus, and specific CAO arrangements or written agreements for earnings above three times the minimum wage can change it. There is no general statutory thirteenth month; a CAO or employment agreement can make one compulsory, and that is separate again. The allowance is commonly paid in May or June, and other timing needs the employee's written agreement, so make clear whether a quoted salary includes it.
Working hours, rest and overtime
The general adult limits are 12 hours per shift and 60 per week, with averages of 55 weekly hours over four weeks and 48 over sixteen. These are ceilings rather than a standard working week, and sector, CAO, age and pregnancy exceptions apply.
Daily rest is normally 11 consecutive hours, with a limited reduction to 8 hours once in seven days when the work requires it, and weekly rest is normally 36 consecutive hours or 72 over fourteen days under the split-rest rules. Set normal working hours and overtime compensation in the contract and check the CAO rather than applying one generic overtime table to every Dutch employee.
What benefits and leave are employees entitled to in the Netherlands?
Statutory leave is four times weekly working hours a year, which is 160 hours on a 40-hour week, and unused statutory leave normally expires the following July. Public holidays are the surprise: the official calendar lists them, but a public holiday does not automatically give a legal right to time off. What decides that is the CAO or the employment contract. Part-year entitlement is proportional, CAOs can add leave, and on a five-day week four weeks means 20 days: ask the EOR to record balances and check exceptions before leave lapses.
Annual leave and public holidays
The 2026 official calendar runs as follows, and the CAO or contract decides which of these dates are actually days off for your employee.
| 2026 date | Official holiday |
|---|---|
| 1 January | New Year's Day |
| 3 April | Good Friday |
| 5-6 April | Easter Sunday and Monday |
| 27 April | King's Day |
| 5 May | Liberation Day |
| 14 May | Ascension Day |
| 24-25 May | Whit Sunday and Monday |
| 25-26 December | Christmas Day and Boxing Day |
Sick pay
The employer normally continues at least 70% of salary for up to two years, with a minimum-wage floor in year one, and CAO or contract terms may require more. Reintegration duties apply throughout, and UWV can extend wage continuation by up to a further year where the employer's effort was insufficient.
Agree how sickness is reported and how the company doctor or occupational health service is involved. The old assumption of a standard 91% second-year payment is not the general statutory rule.
Family and care leave
Six statutory leaves apply, each with its own pay rule, and most are funded by UWV rather than by you. Entitlement, notice and any employer top-up still need checking for the individual, and special leave for events such as marriage or moving depends on the CAO: there is no general statutory two-day marriage allowance.
| Leave | What the general rules provide |
|---|---|
| Pregnancy and maternity | At least 16 weeks in total for a single pregnancy; the UWV benefit is capped. |
| Partner birth leave | 1 working week at full pay within 4 weeks; up to 5 additional weeks within 6 months with capped UWV benefit at 70%. |
| Parental leave | 26 working weeks per child; up to 9 paid through capped UWV benefit at 70% if taken in the first year. Remaining leave is normally unpaid until age 8. |
| Adoption or foster leave | 6 weeks for eligible parents, with UWV benefit arrangements. |
| Short-term care | Normally 2 times weekly hours per year, with 70% pay and a minimum-wage floor. |
| Long-term care | Normally 6 times weekly hours per year, unpaid, subject to eligibility. |
Benefits to agree in the offer
Confirm the pension arrangement, additional holiday, any bonus, travel expenses, equipment and remote-work support in writing, and compare real offers rather than an unsupported national figure for typical benefits.
What happens if you need to end employment in the Netherlands?
Discuss the proposed change with the EOR before giving notice or promising an exit payment. Ask it to confirm the procedure, timing and costs for the employee’s circumstances.
The numbers behind this figure
| Obligation | Weeks of salary |
|---|---|
| Statutory notice | 8.7 weeks |
| Statutory severance | 7.7 weeks |
| Total statutory exit cost | 16.4 weeks |
The Netherlands sits at number 49 of 191 countries for statutory exit cost in our Termination Cost Index.
What are the termination and compliance rules in the Netherlands?
A Dutch dismissal needs a valid ground and the correct route: contested economic or long-term incapacity cases normally go through UWV, and other grounds go to court. This is the part of Dutch employment that most resembles Germany and least resembles the United States, and the sequence matters more than the notice period. Involve the EOR before you commit to anything about the exit.
The Dutch dismissal process
Written mutual agreements carry a 14-day reconsideration period, extended to 21 days if that right is not stated in the agreement. For economic dismissal the employer normally has to justify the reason, the selection and the effort to find suitable alternative work, while performance or relationship cases need their own assessment. Dismissal bans protect certain situations, including sickness and pregnancy, with defined exceptions.
Notice periods
Notice runs with service on a permanent contract, in calendar months rather than fixed 30-day units.
| Service under a permanent contract | Statutory employer notice |
|---|---|
| Less than 5 years | 1 month |
| 5 to under 10 years | 2 months |
| 10 to under 15 years | 3 months |
| 15 years or more | 4 months |
Contract and CAO variations, AOW age and the dismissal route can all change the position. Time spent in a qualifying UWV or CAO-committee process can be deducted only under the rules, leaving at least one month. A fixed-term expiry, and early termination of a fixed-term contract, need their own check.
Transition payment and final settlement
The statutory transition payment is one-third of a monthly salary per year of service from the first day, proportional for shorter service, capped in 2026 at €102,000 gross or one gross annual salary if that is higher. Two details are commonly got wrong: the formula does not step up to half a month per year after ten years, and the monthly-salary base includes the applicable wage components rather than base salary alone. Employer termination and non-renewal often trigger the payment while a mutual settlement follows different rules, and outstanding wages, holiday allowance and unused leave settle alongside it.
Ongoing employment administration
Agree who maintains identity, payroll and employment records, handles absence reports and coordinates workplace safety, and tell the EOR before changing pay, hours, duties or work location. Ask it to check the applicable CAO and the effective date of any legislative change before a contract is amended.
These are stored source rules, not a case-specific termination calculation. Confirm the applicable procedure and current requirements before acting.
Choose an EOR for your hire in the Netherlands
Compare the employing entity, itemised costs, local support, payroll deadlines and what happens if you change or end the arrangement.
Questions about hiring in the Netherlands
Can I use a PEO in the Netherlands?
Check what the provider means by PEO before anything else, because the label settles neither the employer nor the rules. Confirm who signs the employment contract, whether you need your own entity, and which Dutch rules apply to the arrangement. Our EOR and PEO comparison explains the service models.
What changed in the Netherlands
Checked against official sources on .
No rule changes recorded since we began logging them.
Corrections to this guide
- Corrected 11 October 2026Employer social contributions: 16.97% → 19.17% · sourceMedium/large employer, permanent contract: AWf laag 2.74 + Aof hoog 7.63 + Wko surcharge 0.50 + Ufo 0.68 + Whk sector average 1.52 (employer-specific) + Zvw werkgeversheffing 6.10. Small employer (Aof laag 6.27): 17.81. Premium wage cap EUR 79,409.
Check the facts behind this guide
Each reviewed fact links to its source and shows its validation date and effective period. Monthly review does not mean that every rule changes monthly. Statistical benchmarks retain their original data periods.
View sourced facts and review dates
| Fact | Value | Source | Effective / data period | Last validated |
|---|---|---|---|---|
| Dutch payroll employment | Under a Dutch payroll arrangement, the payroll company employs the person you recruit while you supervise their work. Equivalent employment terms and dismissal protections apply, and ending the service agreement is not itself a ground for dismissal. | Dutch government, Business.gov.nl | Review due | |
| Minimum hourly wage | €14.99 gross per hour from 1 July 2026 for employees aged 21 and over. Youth rates differ. There is no fixed statutory monthly minimum: pay depends on the applicable working hours. | Government of the Netherlands | From 1 July 2026 | Review due |
| Holiday allowance | The usual statutory minimum is 8% of gross eligible pay, including overtime. It is separate from paid holiday time and a year-end bonus. Specific CAO arrangements and written agreements for earnings above 3 times the minimum wage can change it. | Dutch government, Business.gov.nl | Review due | |
| Salary payment | Agree the pay period in writing: monthly, weekly and four-weekly payment are possible. Pay follows the period worked; any permitted postponement needs contractual agreement. The net minimum wage must be paid through a bank. | Dutch government, Business.gov.nl | Review due | |
| Written employment terms | Contracts may be verbal, but key employment details must be given in writing within 1 week and further terms within 1 month. Identify the legal employer, pay, hours, contract duration and applicable CAO, pension and leave terms. | Dutch government, Business.gov.nl | Review due | |
| Fixed-term contract chain | The usual limit is 3 successive temporary contracts within 3 years. A fourth contract or a chain exceeding 3 years becomes indefinite, generally counting gaps of 6 months or less. Successive employers, CAO variations and statutory exceptions matter. | Dutch government, Rijksoverheid | Review due | |
| Probation limits | No probation for a temporary contract of 6 months or less. The usual maximum is 1 month for a longer temporary contract under 2 years, and 2 months for a permanent contract or a temporary term of at least 2 years. CAO variations can apply. | Dutch government, Rijksoverheid | Review due | |
| On-call employment | On-call work normally needs 4 days’ notice; a CAO may reduce this to 1 day. After 12 months of continued employment, offer fixed hours based on the preceding year’s average. The employee can decline; this is not automatic permanent employment. | Dutch government, Business.gov.nl | Review due | |
| Contractor classification | The actual working relationship determines whether a person is self-employed. Both parties must assess it. Enforcement resumed on 1 January 2025, and false self-employment can lead to payroll tax assessments; a contractor agreement alone is insufficient. | Dutch government, Business.gov.nl | Enforcement from 1 January 2025 | Review due |
| Non-compete clauses | A non-compete requires written agreement with an adult employee and must not unreasonably restrict future work. A fixed-term contract needs explicitly justified legitimate business interests. Proposed tighter rules are not treated as current law. | Dutch government, Business.gov.nl | Review due | |
| Pension for payroll employees | Payroll employees are entitled to an adequate pension arrangement. They can join the hirer’s scheme, or the payroll company can provide a scheme meeting the legal conditions. Confirm the actual fund, contributions and covered earnings. | Dutch government, Business.gov.nl | Review due | |
| Employer healthcare levy | The employer Zvw levy is 6.10% in 2026, with maximum contribution income of €79,409. This is one payroll charge, not the total employer contribution rate. Other insurance and pension charges require the employer-specific calculation. | Netherlands Tax Administration | 2026 rates | Review due |
| Employee national insurance | For people below AOW pension age throughout 2026, national insurance rates are AOW 17.90%, Anw 0.10% and Wlz 9.65%, up to €38,883 of relevant income. These are included in the first Box 1 band, rather than an extra flat deduction on all salary. | Netherlands Tax Administration | 2026; below AOW age for the whole year | Review due |
| Income tax and national insurance | For people aged 66 or younger in 2026, Box 1 marginal bands are 35.75% through €38,883, 37.56% above that through €78,426, and 49.50% above €78,426. The first band includes national insurance. Credits, deductions and AOW status affect the result. | Netherlands Tax Administration | 2026 Box 1; not a net-pay quote | Review due |
| Median hourly earnings | CBS reports €26.90 gross per hour for 2025, provisional, for employees aged 15–74 excluding the institutional population. The measure excludes special rewards and overtime pay. It is a national median, not an annual salary or a role-specific offer. | Statistics Netherlands (CBS) | 2025 provisional; table published 18 August 2026 | Review due |
| Working time limits | The general adult limits are 12 hours per shift and 60 per week, with averages of 55 weekly hours over 4 weeks and 48 over 16 weeks. These are ceilings, not a standard working week. Sector, CAO, age and pregnancy exceptions apply. | Dutch government, Rijksoverheid | Review due | |
| Rest time | The general rule is 11 consecutive hours’ daily rest, with a limited reduction to 8 hours once in 7 days when work requires it. Weekly rest is normally 36 consecutive hours, or 72 over 14 days under the specified split-rest rules. | Dutch government, Rijksoverheid | Review due | |
| Paid annual leave | The statutory yearly minimum is 4 times weekly working hours: 160 hours for a 40-hour week. Part-year entitlement is proportional. CAOs and contracts can add leave. Statutory unused leave normally expires the following July, subject to applicable exceptions. | Dutch government, Ondernemersplein | Review due | |
| Public holidays | The official calendar lists 2026 public holidays, but a public holiday does not automatically give a legal right to time off. Check the employee’s CAO or employment contract for days off and payment arrangements. | Government of the Netherlands | 2026 calendar | Review due |
| Sick pay and reintegration | The employer normally continues at least 70% of salary for up to 2 years, with a minimum-wage floor in year 1. CAO or contract terms may require more. Reintegration duties apply; UWV can extend wage continuation by up to 1 year for insufficient effort. | Dutch government, Business.gov.nl | Review due | |
| Pregnancy and maternity leave | At least 16 weeks in total for a single pregnancy, including at least 10 weeks after birth. Timing, multiple births and hospitalisation can alter entitlement. The UWV maternity benefit is based on daily earnings and is capped. | Dutch government, Rijksoverheid | Review due | |
| Partner birth leave | One working week at full employer pay, taken within 4 weeks of birth. After that, up to 5 additional working weeks can be taken within 6 months, with UWV benefit of 70% of daily earnings up to its cap. | Dutch government, Rijksoverheid | Review due | |
| Parental leave | Each eligible parent has 26 working weeks of parental leave per child. Up to 9 weeks carry a UWV benefit of 70% of capped daily earnings if taken in the first year; the remaining entitlement is normally unpaid and available until age 8. | Dutch government, Rijksoverheid | Review due | |
| Care and emergency leave | Short-term care leave normally covers 2 times weekly hours per year at 70% pay, at least the minimum wage. Long-term care leave normally covers 6 times weekly hours unpaid. Eligibility, CAO variations and emergency-leave rules must be checked. | Dutch government, Business.gov.nl | Review due | |
| Year-end bonus | There is no general statutory 13th-month or year-end bonus. A CAO or employment agreement can make it compulsory. This is separate from statutory holiday allowance. | Dutch government, Business.gov.nl | Review due | |
| Employer notice | For a permanent contract, the statutory employer notice is 1 month below 5 years’ service, 2 months at 5–under 10, 3 months at 10–under 15, and 4 months at 15+ years. Contract, CAO, AOW-age and procedural exceptions apply. | Dutch government, Rijksoverheid | Review due | |
| Transition payment | The statutory calculation is one-third of a monthly salary per year from the first day, with a proportional calculation for shorter service. The 2026 cap is €102,000 gross, or one gross annual salary if higher. Eligibility and exceptions depend on how employment ends. | Dutch government, Rijksoverheid | 2026 cap; current formula since 1 January 2020 | Review due |
| Dismissal process | A valid ground and the correct route are required. Contested economic or long-term incapacity cases normally go through UWV; other grounds go to court. Written mutual agreements have a 14-day reconsideration period, extended to 21 days if the right is not stated. | Dutch government, Business.gov.nl | Review due | |
| Highly skilled migrant sponsorship | The employer must be recognised by IND to apply under the highly skilled migrant route. Sponsor duties, market-rate salary and immigration requirements remain applicable when a payroll company supplies the employee to a client. | Immigration and Naturalisation Service (IND) | Review due | |
| Skilled migrant salary thresholds | For a first application in 2026, the monthly gross salary thresholds excluding holiday allowance are €5,942 at age 30+, €4,357 under 30, or €3,122 under the qualifying reduced criterion. Extensions and employer changes have specific age and timing rules. | Immigration and Naturalisation Service (IND) | 2026; first applications and qualifying reduced criterion | Review due |
| AOW pension age | State pension age depends on birth date: 67 for births from 1 March 1957 through 1960, and 67 years 3 months for births from 1 January 1961 through 30 September 1964. Ages for later births remain provisional in the reviewed SVB table. | Sociale Verzekeringsbank (SVB) | Review due |