Hiring in Netherlands

The Netherlands’ innovative workforce and business hub status are appealing, but its labor laws require expertise. Omnipresent, as your Employer of Record (EOR), ensures compliance with UWV rules, no entity needed.

Our EOR services cover payroll, taxes, and benefits like 20 days of leave, freeing you to oversee teams in Amsterdam or Rotterdam. We offer a tech-driven solution for this competitive landscape.

• Swift hiring, fully compliant.
• Payroll in EUR, fully handled.
• Local benefit and wage insights.
• Easy scaling with full coverage.

Employer costs include Private Pension Plan, Health Insurance Act, and Disability Act. Use the OmniCalculator to estimate costs, or contact us for further information.

Income Taxes

In 2024, the tax rates for Box 1 income (including salary and personal business profits) are as follows:

• for taxable income up to 75,518 euros, the tax rate is 36.97 percent; and

• for taxable income over 75,518 euros, the tax rate is 49.5 percent.

Within the first bracket, for taxpayers born in or after 1946, the 36.97 percent rate charged on the first 38,098 euros actually consists of income tax at the rate of 9.32 percent and social security contributions at the rate of 27.65 percent. The amount above 38,098 euros in the first bracket is subject only to income tax, but at the full rate of 36.97 percent.

Employee Contributions

Social insurance is divided into three types of obligatory assessments: the national insurance contributions, the employed persons' insurance schemes contributions, and the Health Care Insurance Act contributions.

Effective for 2024, the maximum amount of annual wages on which national insurance contributions are assessable for employees born on or after Jan. 1, 1946 is €38,098

Employees can work maximum 12 hours per day, and 60 hours per week. This can vary per sector, employers cannot contract out of this.

Overtime is regulated as per the Collective Bargaining Agreement (CBA) or employment contract. A full-time working week usually is 5 days a week, from Monday to Friday, between 36 to 40 hours.

Employees are entitled to up to 2 years of sick leave. The minimum sick pay is a payment of 70% of employees wages paid by the employer. Employers often top up to 100% of wages.

Maternity leave: A minimum of 16 weeks fully paid by the Employee Insurance Agency.

Paternity/Partner Leave: Partners of an employee who gives birth are entitled to 1 week of fully paid paternity/partner leave after the birth of a child. Can be taken any time in the first 4 weeks after the birth. Partners may also be entitled to unpaid leave.

Annual leave entitlement is minimum 20 working days, excluding public holidays.

Many companies offer more than the minimum number of days.

All employees from their first day are entitled to mandatory severance pay (called a transitievergoeding or "transition payment"). This is equal to a third of the monthly salary for each year worked up to a maximum of EUR 89,000 or 1 year’s salary - whichever is highest.

Termination must be for cause and must be approved by the labor courts, unless it is during the probation period or where a fixed-term contract has expired.  Most employers use settlement agreements to avoid the lengthy formal process.