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Netherlands 2022
Day Date Holiday Notes
Saturday Jan-1 New Year's Day
Friday Apr-15 Good Friday
Sunday Apr-17 Easter Sunday
Monday Apr-18 Easter Monday
Wednesday Apr-27 Kings Day
Thursday May-26 Ascension Day
Sunday Jun-5 Whit Sunday
Monday Jun-6 Whit Monday
Sunday Dec-25 Christmas
Monday Dec-26 Second Day of Christmas
Countrypedia

Netherlands
Payroll and Benefits Guide

Last updated: Feb 22, 2022
Currency
Euro (EUR)
Payroll Frequency
Monthly
Employer Taxes
13.46% to 25.72%

Papaya Offers Complete Payroll, PEO and Contractor Management Services For Netherlands

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Overview

Capital
Amsterdam
Currency
Euro (EUR)
Date Format
dd/mm/yyyy
Public holidays calendar

Contributions

Employer

Employer Payroll Contributions

5.49% to 7.05%
WAO/WIA Aof : Invalidity Insurance Fund 5.49% (small employers %) to 7.05% (medium to large employers)
0.34% to 5.34%
WW premium: Unemployment Fund (0.34% AWf layer to 5.34% Awf high)
6.75%
ZVW : Healthcare Insurance Act (maximum contribution income 59,706 EUR)
0.21 % to 3.36%
Whk: Work Resumption Fund
0.17% to 2.72%
Sickness Benefits Act
0.50%
Child Care Premium
13.46% to 25.72% Total Employment Cost

Employee

Employee Payroll Contributions

17.90%
Old Age Pension (AOW)
0.10%
Orphans and widow/widower pension (ANW)
9.65%
Long Term Care (WLZ)
Up to 2.70%
General Unemployment Fund (Awf: for employees with permanent contract for an indefinite period)
27.65% to 30.35% Total Employee Cost

Employee Income Tax

37.07%
Up to 69,398 EUR
49.50%
Over 69,399 EUR
Employer Taxes
3 HIGHEST
3 LOWEST
Mexico
Russia
South Korea
Netherlands
Georgia
Lithuania
Macedonia
43.72%
38.5%
34.93%
25.72%
2%
1.77%
0%
Employee taxes
3 HIGHEST
3 LOWEST
Romania
Germany
Netherlands
Netherlands
Belarus
Ukraine
Cambodia
35%
31.05%
30.35%
30.35%
1%
0.6%
0%

Minimum Wage

General

In The Netherlands, the minimum wage (wettelijk brutominimumloon)for employees 21 years and over is 1,725.00 EUR per month. 

Minimum wage (per month)
$4000
$2663
$2518
$2069
$36.80
$17.24
$2.33
Geneva
Luxembourg
Australia
Netherlands
Angola
Tanzania
Venezuela
3 HIGHEST
3 LOWEST

Payroll

Payroll Cycle

In the Netherlands, the payroll frequency is monthly.  Work between the first and last day of the month is typically paid on the last day of the month.

13th Salary

A 13th-month salary is not mandatory, it’s up to the employer to give any additional salary/ bonus.

Working Hours

General

The standard working week in the Netherlands can be no longer than 45 hours, with an average being 40 hours per week/9 hours per day.

 

Overtime

If work time limits are passed, overtime compensation is compulsory. The maximum number of overtime hours is per the employee’s collective agreement/employment contract.

Leave

Paid Time Off

A full-time employee is entitled to 20 days of paid annual leave per year. However, in the Netherlands, it is common practice to offer 24 and even 32 days of paid annual leave.

Also, in the Netherlands, any leave accrued from the previous year must be used by July, and the employer must inform the employee if this is about to expire (although this requirement is only for the statutory minimum number of days).

Vacation days
Public holidays
3 HIGHEST
3 LOWEST
Azerbaijan
United Arab Emirates
Brazil
Netherlands
Mexico
Malaysia
Federal
21
24
45
30
15
45
30
13
43
20
10
30
6
8
14
8
6
14
10
10

Public Holidays

The Netherlands has 11 official public holidays.

Sick Days

If an employee is unfit to work due to sickness, they are entitled to 70.00% of their last earned salary for one year. For sickness that surpasses the year, the WULBZ (legal duty to continued payment of salary at sickness) becomes effective. This law enables the ongoing payment of salary for up to 104 weeks of sickness at (a minimum of) 70% of the salary. Some employers supplement this to provide 100% of the salary. However, this is only permitted in the first sickness year, and should the sickness continue into a second year the maximum paid is up to 70% of the salary.

Maternity Leave

A pregnant employee is entitled to 16 weeks of paid Maternity leave; Maternity leave consists of two periods: prenatal leave and postnatal leave.

  • Prenatal leave: An employee must take 4-6 weeks leave before the expected due date (zwangerschapsverlof)
  • Postnatal leave: A employee must take the remaining 10-12 weeks (bevallingsverlof)) which starts from the date of the birth of the child.

The Maternity pay can be paid by the Employee Insurance Agency (Uitvoeringsinstituut Werknemersverzekeringen, UWV). However, it is common practice for the employer to continue paying the salary and the UWV, in turn, pays the employer. Suppose pregnancy or childbirth results in incapacity for work. In that case, the employee is eligible for benefits equivalent to 100.00% of her salary for the maximum of a year after the date of birth.

PAID MATERNITY LEAVE (DAYS)
413
410
365
112
40
30
0
Norway
Bulgaria
Serbia
Netherlands
Malawi
Tunisia
Federal
3 HIGHEST
3 LOWEST

Paternity Leave

The father/partner is entitled to 1 week of paid Paternity leave after the child’s birth.

Employees are also entitled to 5 weeks of unpaid leave in the first six months after birth; even though this is unpaid by the employer, they can claim up to 70.00% of their salary from the Employment Insurance Agency (Uitvoeringsinstituut Werknemersverzekeringen, UWV).

Parental Leave

In effect from August 2022, new parental leave will entitle new parents to 50 % of their wages for the first nine weeks of leave, guaranteeing all parents at least nine weeks of paid parental leave, paid for by the government, as long as the leave is taken during the first year of the child’s life. 

Other Leave

Depending on the collective agreement/employment contract terms, an employee may be allowed additional leave types, on approved between the employer and employee, for the following:

  • Short-term care: employees are entitled to up to two days of paid leave per year, although the payment will be 70.00% of the regular salary.
  • Adoption leave: employers can apply for an adoption leave allowance of up to six weeks on behalf of their employee to the Employee Insurance Agency (Uitvoeringsinstituut Werknemersverzekeringen, UWV).

Termination

Termination Process

The termination process varies according to how the Employment Agreement and Collective Agreement are in place and is based on the type of contract and reason for termination. However, no termination due to economic reasons or long-term disability can occur without the Employee Insurance Agency (UWV).

Notice Period

The statutory minimum notice period for termination in The Netherlands is one month however it is dependent on the employee’s length of service as below:

less than 5 years – 1 month notice

Between 5 & 10 years – 2 months’ notice

Between 10 & 15 years – 3 month’ notice

More than 15 years – 4 months’ notice

Severance Pay

Severance pay in The Netherlands is referred to as transition payment and stipulated in the employment contract/collective agreement. In general, employees are entitled to a payment from their first day of employment when an employer terminates their employment agreement.  The amount due for payment is calculated per the contract but at least at a rate of one-third of the regular salary income per year of service up to a maximum of 84,000 EUR.

Probation Period

Probation or Trial periods are generally set within the collective agreements and contracts of the employee; however, standard practice in the Netherlands is two months.

VISA

VISA

There is no formal requirement for EU/EEA/Swiss nationals to obtain a residence or work permit. Still, they do need to obtain a residence permit to be eligible for social security benefits.

Nationals of the USA, Canada, Japan, Australia, New Zealand, and all non-EU/EEA/Swiss foreign nationals who wish to stay longer than three months in the Netherlands must obtain an “authorization temporary stay” (MVV) from the Dutch embassy or consulate in their home country before entering the Netherlands.

The employer must submit a work permit application to the Social Security Office (UWV), providing evidence that they have made every effort to recruit a Dutch/EU/EEA/Swiss national in the first instance. No applicant is allowed to work in the Netherlands until their work permit has been approved.

VAT

General

The standard rate of VAT in The Netherlands is 21.00%.

Version History

February 22, 2022
The minimum wage for employees 21 years and over has increased to 1,725.00 EUR per month. 
Payroll contributions and personal income tax rates have been updated.
New paternity leave in effect from August 2022.
July 1, 2021
The monthly minimum wage increased to 1,701.80 EUR per month
January 1, 2021
Employee Income Tax: For those earning 34,712 - 68,507 EUR, income tax dropped from 37.35% to 37.10%
Minimum wage: The minimum monthly wage rose to €1,684.80 per month for any employee over the age of 21.
Employer Payroll Tax: Unemployment Insurance dropped to 2.70% - 7.70%
Employer Payroll Tax: Health insurance rose to 7.03%

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    Questions & Answers

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    12 Comments
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    Jennifer H.
    Jennifer H.
    1 year ago

    How do i apply for a 30% tax ruling?

    Erez Greenberg
    Admin
    1 year ago
    Reply to  Jennifer H.

    Employees who are eligible must jointly apply with their employer for this with the local tax authorities -> https://www.belastingdienst.nl/wps/wcm/connect/bldcontenten/themaoverstijgend/applications_and_forms/application-income-tax-and-national-insurance-30-facility-2021

    Once approved, it is applied to the salary and can last up to 5 years.

    Giselle A.
    Giselle A.
    1 year ago

    When should i receive holiday pay?

    Erez Greenberg
    Admin
    1 year ago
    Reply to  Giselle A.

    Every month your employer is obligated to put 8% of your gross salary aside. This amount is then paid out every year in May. If your employment is terminated, this is paid out to you upon termination.

    Helen Pham
    1 year ago

    will you be able to provide offer letters to employees and process payroll for us if we are not incorporated in Netherlands?

    Emily Kuhnert
    Admin
    1 year ago
    Reply to  Helen Pham

    Hi Helen, thank you for reaching out to us! If you are not incorporated in the Netherlands, we can most certainly assist you! Kindly book a demo here https://papayaglobal.com/schedule-a-demo/ and someone will reach out to you so we can understand exactly what you need.

    Weslley
    Weslley
    10 months ago

    I wanted to know when should I receive all the remaining value the company have to pay me after the end of my notice period.
    I quit my job and they haven’t even said anything regarding the vacation days or the rest of the salary.

    Emily Kuhnert
    Admin
    10 months ago
    Reply to  Weslley

    Hi Weslley, thank you for your question. Can you please clarify? Did you quit before the end of the notice period? Regardless, you should receive your final pay including unused vacation days on the regular pay date.

    Ludovico Benazzo
    Ludovico Benazzo
    6 months ago

    Hi, under the 30% tax ruling are the Employee Payroll Contributions calculated on the gross 100% of the salary or on the 70%? Thx.

    Emily Kuhnert
    Admin
    6 months ago

    Hi Ludovico, thank you for your question. The 30% tax ruling only applies to the employee side of what needs to be deducted (the employee is exempt from paying taxes on 30% of their salary when eligible). The employer payroll calculation is based on 100% of the salary.

    Rafael
    Rafael
    3 months ago

    Hi there, if i receive per month the minimum wage (1725euros) how much of tax should i be discounted?

    Erez Greenberg
    Admin
    3 months ago
    Reply to  Rafael

    It depends on several factors, but total employee tax is between 27.65% to 30.35%.

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