EMPLOYER OF RECORD IN THE NETHERLANDS

As one of the most stable economies in the European Union, the Dutch economy is the sixth-largest in Europe. The Netherlands may be smaller in size compared to other European countries; however, its economy is one of the fastest growing.

The Dutch government helps businesses grow by simplifying bureaucracy, offering tax breaks, and continuously updating public policy for businesses. The Netherlands’ largely English-speaking population, excellent connections to other European markets, and robust digital infrastructure make it a prime location for businesses looking to expand internationally.

The Netherlands is constantly finding new ways to attract highly skilled migrants and entrepreneurs. The country has transformed itself from a hub of farmers, sailors, and merchants into a global financial center and start-up capital.

Dutch workers lead most other countries in business and tech skills. Beyond tech, the Dutch government invests heavily in national companies. In January 2020, the government introduced a massive €1.7 billion fund to attract European investors.

The Netherlands has been named the ninth-most innovative country in the world, according to Bloomberg’s 2021 Innovation Index.

The Netherlands is constantly finding new ways to attract highly skilled migrants and entrepreneurs. The country has transformed itself from a hub of farmers, sailors, and merchants into a global financial center and start-up capital.

Pursuant to Article 7:655 of the Dutch Civil Code, the employer must inform the employee in writing of the following within one month of starting employment:

• Name and residence of the parties
• Place where the work will be carried out
• Position and a description
• Starting date
• If the employment contract is for a fixed period of time, the time period
• Leave entitlements
• Salary and payment arrangements
• Customary working hours per day or per week
• Pension rights, if applicable
• Collective labor agreements, if applicable
• Non-competition clause, if applicable
• Notice period for termination

The national minimum wage in the Netherlands changes twice annually, on January 1 and again on July 1, to reflect collectively agreed-upon wage averages. As of July 1, 2022, the minimum wage is as follows:

• 21 years old and older: €1,756.20 per month
• 20 years old: €1,404.95 per month
• 19 years old: €1,053.70 per month
• 18 years old: €878.10 per month
• 17 years old: €693.70 per month
• 16 years old: €605.90 per month
• 15 years old: €526.85 per month

In the Netherlands, tax changes are made every new year. As of 2022, the income tax rates are:

• 37.07% for income up to EUR69,398
• 49.5% for income over EUR69,398

Social security contributions are payable on employees’ gross annual earnings. The employer withholds the employees’ share from the gross salary, and the employer’s share comes on top of the gross salary. The national pension and national health insurance have a 27.65% contribution, the national unemployment insurance has a 2.94% or 7.94% contribution depending on the employment contract, disability insurance has an 8.55% contribution, and childcare has a 5% contribution.

The statutory number of paid leave hours per year is at least four times the number of weekly working hours. By this calculation, a full-time employee is entitled to a minimum of 20 days of paid leave per year, excluding public holidays. Employees are free to negotiate more paid leave per year. Collective labor agreements may specify additional leave provisions.

An employer of record (EOR) in the Netherlands is a third-party organization that becomes the full legal employer of your in-country workforce. The EOR compliantly handles employer-related responsibilities like onboarding, pay, and benefits while enabling you to continue managing the day-to-day operations of your team.