Don’t risk non-compliance with local employment, social insurance, and tax regulations.
Omnipresent provides global employment solutions and professional employment organisation (PEO) services for companies looking to grow and build out a global team the Netherlands. Traditional methods of establishing global employment and subsidiaries in the Netherlands typically take months and can incur heavy costs. Omnipresent’s global employment solutions and professional employer organization services are helping hundreds of organisations onboard new employees in the Netherlands in a matter of days with full compliance of local labour laws. We use a tech-forward approach to streamline the process.
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.
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.
Please note that the below information covers national holidays and should be used for informative purposes only and not as a guarantee for payroll purposes. While we strive to offer you accurate information, public holidays are subject to frequent changes and can be dependent on regional differences. Should you need more detailed information on public holidays, please consult the government pages of the state and/or the local municipality of your employee.
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.
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The benefits of growing a global team and finding the best talent anywhere in the world are endless. It’s important to note that labour laws and regulations in Netherlands are strict with penalties for non-compliance. Let our team take care of the global payroll solutions, benefits, and administrative tasks, and all other aspects of employment, all while ensuring adherence to global regulatory compliance. That way, you can dedicate your efforts to business growth, knowing that we're here to support you every step of the way.
Omnipresent makes it easy to hire, pay, and support your international team with our top-notch services including our global EOR & PEO services. Book a call with us to start building your global team today. Book a call with us to start building your global team today.
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A comprehensive guide to hiring in the Netherlands.