Currency: Euro (EUR) (Rate)
Public Holidays: 11 Holidays (see here)
Employer taxes & benefits: up to 35% of salary
Official Language: Dutch
Payroll frequency: Monthly
Vacation bonus: 8% paid in May
The legal minimum number of vacation days in the Netherlands per year is four times the amount of days worked per week. This typically means 20 holidays in the case of a full-time employee working a five-day week. Employers usually give up to 25 days of paid holidays.
When the minimum 20 days of statutory leave has not been used, employee can carry the days over during the first 6 months of the following year before they lapse. Any leave in excess of the statutory days, if not consumed, can be carried over for 5 years.
There are 10 public holidays each year and some can fall on the weekend. It is not legally obliged to take Dutch public holidays.
It is customary for employers to pay an extra 8% on gross salary to fund vacation pay which is given to employees in May.
The minimum sick leave entitlement in the Netherlands is a payment of 70% of their most recent wage level, up to a maximum period of two years.
Minimum wage depends on age and tenure of work. For adults working 40 hours a week, it is € 9.54 per hour.
Employees can be dismissed only by mutual agreement or for a justified reason authorized by the Employee Insurance Agency (UWV) after the probationary period has passed.
Severance payments are often required, when dismissal is done by mutual consent. Typically the amounts for severance by mutual agreement can be equivalent to 3-6 months of salary or even more. If dismissal is mutually agreed upon, the company doesn't need to pay an additional transition payment.
An employer may be required to pay severance payment to the employee if:
An employee has 14 days to reconsider the termination agreement. During this time, they can withdraw their consent.
When an employee is given notice of termination by permission from the the UWV (the Employee Insurance Agency) a transition payment is paid to the employee. The amount is 1/3 of the gross monthly wage per year. Transition payment is capped at €84,000 in 2021.
The Dutch government has introduced this tax-free allowance as of 1 January 2022 to cover costs related to working from home (for instance electricity, water, coffee). It is however not obligatory for an employer to provide for this. A copy of the governmental page regarding this topic:
https://business.gov.nl/amendment/reimbursement-working-from-home/
A standard Dutch working week is 38 hours. The majority of full-time jobs in the Netherlands are between 36-40 hours a week, or seven to eight hours a day, five days a week.
Across a four-week period an employee may not work more than 55 hours per week, and over a 16-week period an employee may not work more than 48 hours per week.
Overtime is not common in Netherlands.
Compensation for overtime depends on your contract.
If you are employed in the Netherlands and you become pregnant then you are legally entitled to at least 16 weeks paid maternity leave.
Expectant mothers start their maternity leave from 4 to 6 weeks before the due date.
Fathers get 5 work days of paternity leave.
Non-compete agreements must be clear and in writing, and only applicable to permanent employment contracts. They are usually of a year's duration, but some agreements can last up to two years. Employers are not statutorily required to pay compensation to the employee in return to adhering to the agreement.
The state health system is financed in two ways:
People can choose packages of extended coverage health cover (aanvullende verzekering) e.g. for dental, vision, vaccinations, etc at additional cost - this can be paid for by the employer or employee.
This provides more info on the system.
In the employment as a service model, it is mandatory for the employer to contribute in a Dutch pension fund. In the current scheme the employer’s contribution to the Pension plan is set at 14,6% of gross salary.
The following taxes are capped at €53,700 EUR salary:
The following are not capped: