Tulips, clogs, cheese and windmills. And of course, bicycles. These are a few things that probably come to your mind when you think of the Netherlands. But did you know it’s also home to one of the most qualified workforces in Europe? Let us show you how to hire employees in the Netherlands in a compliant and cost-effective way.
If you’re considering hiring your next candidate in the Netherlands, you’re in the right place. At WorkMotion, we have helped scores of businesses onboard their remote hires, and we have achieved excellent expertise in the country. Our tech solutions and team of experts will make this incredibly easy for you.
Receive process support by an experienced team of experts & pay your talent on time and in their local currency.
Send laptops and other devices to your remote employees in the Netherlands through our platform with just a few clicks.
Identify taxable talent expenses easily. No more manual sorting & human errors. Get 100% protection from tax liabilities
Fast-track your talent onboarding while ensuring 100% compliance with local regulations.
Easily onboard your remote talent in the Netherlands through our Employer of Record (EOR) solution. Our subsidiaries and network partners make this process fast and 100% compliant.
UTC+1
20 days
€2389.44
EUR
10 days
Monthly
The Dutch workforce is known for its digital skills, multilingualism and diversity. Working professionals in the Netherlands are technically skilled, highly adaptable and well-trained. They have access to various training programmes for young workers at different career levels.
Workers in the Netherlands as per industry sectors are as follows: service (82%), manufacturing (16%) and agriculture (2%).
The Netherlands has a robust network of universities that produce some of the smartest graduates in Europe. In the QS World University Rankings 2023, 11 universities in the Netherlands were ranked within the world’s top 250.
The Netherlands ranks the highest among European countries for digital skills including proficiency in using computers, software and the internet. On the English Proficiency Index, the Dutch are recognised as the best in the world.
The Netherlands is a great country of choice if you’re looking to hire talent and expand your business in a new region. This is due to the stability and transparency of their labour relations. The Netherlands is also ranked highly in terms of competitiveness.
The Netherlands (also known as Holland), is located in northwestern Europe. The kingdom includes its former colonies in the Lesser Antilles: Aruba, Bonaire, Curaçao, Saba, Sint Eustatius, and Sint Maarten. Around 2,500 square miles (6,500 square km) of the country consists of reclaimed land. The Netherlands ranks among the highest in international indices of press and economic freedom, human development, and quality of life as well as happiness. *Please note that the official currency is the currency of remuneration when employed through WorkMotion in the Netherlands.
Amsterdam
17.87 M
21%
There are eight public holidays. Bridge days apply for religious holidays to create long weekends. The national holidays mentioned below are valid for the year 2024.
There are eight public holidays. Bridge days apply for religious holidays to create long weekends.
There is no law that says employees must be given a day off work on certain public holidays. The collective labor agreement (Collectieve Arbeidsovereenkomst, CAO) or employment contract may explain if an employee gets the day off on public holidays.
The holidays mentioned below are valid for the year 2025.
National Holidays | ||
Date | Holiday Name | Extra Information |
|---|---|---|
January 1 | New Year’s Day |
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April 18 | Good Friday |
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April 20 | Easter Sunday |
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April 21 | Easter Monday |
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April 26 | Kings Day |
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May 5 | Liberation Day |
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May 29 | Ascension Day |
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May 8 | Whit Sunday |
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May 9 | Whit Monday |
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December 25 | Christmas Day |
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December 26 | Boxing Day |
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The approximate time for sharing the contract with an employee in the Netherlands is 2 business days assuming no special requests or changes to our standard employment contract. Any such requests or changes would need to undergo internal and external review, directly leading to a time delay. NOTE: The estimated Contract Sharing Time begins from the moment that WorkMotion has received all required information from both the client and the employee. If all talent data is available, the contract can be generated immediately.
Payroll employers have to ensure that their payroll employees work under the same conditions as other employees in the company to they have been seconded to. This is known as the Balance Employment Act (Wet Arbeidsmarkt in Balans, WAB).
An employer and employee may agree to work on the basis of temporary contracts. However, a maximum of three temporary contracts over a three-year period is allowed. A fourth contract (third extension), or exceeding the three-year mark, automatically turns a temporary contract into a permanent one.
Also, please note that:
On temporary contracts, the employer-paid contribution to the unemployment benefit plan is 5% higher than on permanent contracts.
Even on temporary contracts that have an end date, the employer is required to give explicit notice of non-extension at least one month before such contract ends as otherwise the employee is entitled to an additional month of employment and salary.
The information included in the employment contract must include at least:
The name and place of residence of the employer and the employee;
The location(s) at which the work is carried out;
The employee’s job or the nature of the work;
The usual working hours;
The amount of the salary and the payment periods;
Date when the employee joined the company;
The term of the contract (if for a fixed term);
The length of the trial period (if applicable:);
Holiday entitlement;
Notice period;
Pension (if applicable);
Non-compete or non-solicitation clause (if applicable);
Whether a CAO applies.
Fixed-term contracts (tijdelijke contracten) have a predetermined end date, after which the employment relationship will end unless the contract is extended or renewed. A maximum of three temporary contracts over three years is allowed. A fourth contract (third extension), or exceeding the three-year mark, automatically turns a temporary contract into a permanent one.
A fixed-term contract has a minimum duration of one month, which employers can extend twice. The total duration of fixed-term contracts cannot exceed 36 months.
Most Collective Bargaining Agreements (CAOs) specify a 40-hour maximum working week. Exceptions are possible, for example, seasonal work, peak times, or in the event of unforeseen circumstances such as a serious accident on the shop floor. In such cases, the employees can work more hours per day temporarily. Exceptions are possible if permitted in the CAO or if any industry-level agreements are in place.
Employees aged 18 and over can work a maximum of 12 hours per day and 60 hours per week. However, they cannot work the maximum number of hours every week, but rather a maximum average of:
48 hours weekly over a 16-week period; or
55 hours weekly for up to four consecutive weeks.
Sundays
An employee does not have to work on Sundays unless the employer and employee have made an agreement in this respect. An employee must have at least 13 free Sundays per year. A CAO may contain agreements reducing the number of free Sundays to less than 13, but in that case, too the employee themselves must consent.
Employer Obligations
The Working Hours Act contains the rules that an employer should keep to:
Record the hours worked;
Put the work schedule in writing so that the employees are able to consult the schedule;
When determining the work schedule the employer must take into account the personal circumstances of their employees. They must, for instance, consider their care duties, education and training, and volunteering;
If there are changes in the work schedule, the employers must let their employees know of this at least 28 days earlier or as guided by a CAO;
An employer is required on grounds of the Working Conditions Act to draw up a risk inventory and evaluation and a plan of approach. They must also devote explicit attention in the risk evaluation to the working hours, the risks that these can entail, and the way in which they want to limit the risks.
There are separate rules for young people under 18 years old. For example, they are normally not permitted to work at night between 11 pm and 6 am. There are also special rules for pregnant women and women who have recently given birth. For example, their working hours and rest breaks may be adjusted accordingly after consultation with the employer.
Breaks
After a working day, an employee must have 11 consecutive hours of non-work time. This rest period may be shortened to eight hours once in a seven-day period if the nature of the work or the business circumstances require this. In the event of a five-day workweek, an employee must have 36 consecutive hours of non-work time after the end of the workweek. A longer workweek is also possible provided the employee has at least 72 consecutive hours of non-work time in a period of 14 days. This period may be split into two periods of at least 32 hours each.
If an employee works for more than five and a half hours, they are entitled to at least 30 minutes of unpaid break time. This may be split into two 15-minute breaks; if an employee works for more than 10 hours, they must have at least 45 minutes of break time. This may be split into several breaks, each of which must be at least 15 minutes.
An employee must have at least 13 free Sundays per year. A CAO may contain agreements reducing the number of free Sundays to less than 13, but in that case, the employee must consent.
Night Shifts
Time worked only counts as night work if the employee works at least one hour between midnight and 6 am. A night shift can last a maximum of 10 hours and must be followed by an extra-long rest period. If a night shift ends after 2 am, this must be followed by a minimum of 14 hours of non-work time. This may be shortened to eight hours a maximum of once per week but only if the type of work or the business circumstances necessitate this. Exceptions apply, for example, if the number of night shifts per year is limited or if there is no substitute for the employee and the work needs to be done.
NOTE: Before the employee’s first night shift, they must undergo a health check-up. Any employee who fails the health check-up must return to daytime work as soon as possible.
An employee can work a maximum number of 117 night shifts per year. This rule does not apply if:
There is a CAO in place that specifies more night shifts; or
The nature of the work demands it.
In these cases, 140-night shifts per year are the maximum.
The employer can apply for an exemption to the maximum, for instance, if the business only operates during the night. If they are granted the exemption, their employees can work 20-night shifts per four weeks – amounting to 260-night shifts per year.
Overtime hours count towards the statutory maximum hours the employee can work, which is 12 hours per day or 60 hours per week. The Act does not state how much extra pay the employee must receive for overtime. Employers can make their own arrangements for this in the terms of employment, or there may be overtime provisions in the CAO.
Pay for Holiday Work
There is no statutory obligation to give employees leave on public holidays. The employer’s sector’s collective labor agreement (CAO) or the employment contract determines if their employees can have a day off on public holidays. Similarly, overtime pay for working on holidays is also determined through the CAO or the employment contract.
The employer and the employee can agree on including a trial period in their employment contract. The duration of a trial period depends on the duration of the employment contract. However, it may never exceed a two-month period. The same period applies to both the employer and the employee. Also, the probation periods differ as per employment contracts:
| EMPLOYMENT CONTRACT | DURATION OF CONTRACT | MAXIMUM TRIAL PERIOD |
| Fixed-term | 6 months to 2 years | 1 month |
| Temporary contracts | 6 months to 2 years | 1 month |
| More than 2 years | 2 months | |
| Permanent contracts | Not applicable | 2 months |
The length of the notice period for an employer depends on the duration of the employment contract, with a maximum duration of four months.
In case of an indefinite contract, both the employer and employee are obliged to adhere to notice periods ranging between one to four months depending on the employment duration.
The minimum number of holiday days in the Netherlands is set at 20. The statutory number of leave hours per year is at least four times the number of weekly working hours. Employees may choose to spend the holidays within six months after the end of the year.
If an employee is out sick, the employer is obliged to pay at least 70% of their last earned wages for a maximum period of two years. This percentage needs to be stated in the employment contract. During the first year of illness, 70% of the employee’s normal wages must be paid. Should this amount to less than the minimum wage, the employer has to supplement the payment up to the minimum wage. During the second year of illness, 70% of the employee’s normal wages should be paid. However, the employer is not obliged to supplement the payment up to the minimum wage.
The government has decided to pay the first nine weeks of parental leave as of August 2022. Parents can take up to 26 weeks’ leave. The Employee Insurance Agency (Uitvoeringsinstituut Werknemersverzekeringen, UWV) pays 50% of an employee’s daily wages during parental leave, up to 50% of the maximum daily wage. Parents will have to use the nine weeks’ paid leave in the first year after the child is born.
Pregnant employees are entitled to six weeks of paid pregnancy leave (before the due date) and at least ten weeks maternity leave (after childbirth) from the employer. In some cases, maternity leave can be longer than ten weeks. The employee also has a right to maternity pay. The employer applies for this benefit for the employee.
If the partner of an employee gives birth, the employee has a right to one week of partner/paternity leave after the birth. This paid leave can be taken any time in the first four weeks after the birth of the child. During this period of leave, the employer must continue to pay 100% of the employee’s salary.
Emergency leave is intended for unforeseen personal circumstances for which an employee has to take time off immediately. For instance, to make arrangements for the care of a sick family member or in the event of a death in the family. The employer must always grant a reasonable request for emergency leave. During this period of leave, the employer continues to pay the employee’s salary. This lasts for just one day. Short-term care leave starts from the second day.
Short-term care leave can be taken to provide essential care to someone who is ill or otherwise in real need. For this leave, the employee must be the only person who can look after the ill person at that moment in time. During the period of leave, the employer continues to pay 70% of the employee’s salary. If this is less than the minimum wage, then the employer pays the minimum wage. The employee is entitled to a maximum of two times the number of hours they work per week, as agreed in the employment contract.
Employees do not have any legal entitlement to unpaid leave. However, it is possible for the CAO to include arrangements relating to unpaid leave.
If a child, partner, or parent of one of the employees is seriously (i.e. life-threateningly) ill and requires care, they can request long-term care leave. During this period of leave, the employer does not have to continue paying the employee’s salary. The employee is entitled to a maximum of six times the number of hours they work per week per 12 months.
There are two types of social insurance schemes in the Netherlands:
Employee insurance (werknemersverzekeringen) is mandatory for every employee that works in the Netherlands and provides employment-related benefits. Thus, this is applicable to all employees in the Netherlands, in addition to the National Insurance.
National insurance (volksverzekeringen) is compulsory for those living in the Netherlands and covers social benefits, so applicable for all residents of the Netherlands.
The following table summarises the contributions for 2024:
In the Netherlands, there is no obligation for the employer to provide a healthcare insurance policy. There is, however, a levy on the health insurance Act that is paid by the employer at 6.57%. Every person who lives or works in the Netherlands is legally obliged to take out standard (basic) health insurance to cover the cost of, for example, consulting a general practitioner, hospital treatment, and prescription medication.
In the Netherlands, there are no separate schemes for industrial accidents and occupational diseases. The rules for sick pay in the event of illness and work incapacity benefits apply to all cases of illness or incapacity for work. If an employee becomes ill and is in paid employment, the employer must continue to pay at least 70% of the pay for at least two years.
The duration of the benefit depends on the number of years worked before becoming unemployed. The amount of the benefit depends on the income earned in the year prior to unemployment. The employee must have been employed at least 26 out of 36 weeks to be eligible. They must be available for work, under 65 years of age, and should not have lost their job due to their fault.
According to the Dutch Childcare Act, parents, employers, and the government must jointly bear the costs of formal childcare. The government does so by imposing a childcare levy on all employers. The law assumes that the employers of the two partners together pay a third of the costs. The contributions by the employers and the government are paid out by the tax authorities by means of child care allowances. The childcare allowance is provided on a per-child basis, whereby an allowance is determined and provided for each child. The amount of the childcare allowance will depend on both the childcare costs and the family’s income situation. Each year, the Ministry of Social Affairs and Employment publishes tables for childcare allowance.
