Hiring international talent in the Netherlands starts with understanding the highly skilled migrant salary requirements. The Dutch Immigration and Naturalisation Service (IND) sets strict income thresholds that your company must meet. Without meeting these thresholds, your candidate cannot qualify for an HSM visa. Therefore, salary planning is not optional. It is the foundation of every compliant hire you make as an employer expanding to the Netherlands.
This guide explains the salary criteria, the visa process, and how the highly skilled migrant Netherlands programme differs from a standard dutch work permit. Additionally, it covers what a tewerkstellingsvergunning is and when you need one instead.
What is the highly skilled migrant salary threshold in the Netherlands?
The highly skilled migrant salary threshold is a minimum gross monthly income that the IND requires before granting an HSM visa. These amounts change every year, typically on 1 January. The threshold depends on the employee’s age and situation. Consequently, employers must verify the current figures before submitting any application. For example, employees under 30 generally face a lower threshold than those aged 30 and above. Reduced salary criteria also apply to employees who recently graduated from a Dutch university.
Because the figures for the indicative salary thresholds update annually, always confirm the latest amounts on the IND website before you begin the process.
How does the HSM visa differ from a tewerkstellingsvergunning?
The HSM visa and the tewerkstellingsvergunning serve different purposes entirely. A tewerkstellingsvergunning is a standard dutch work permit that the UWV issues. In contrast, the HSM visa falls under the highly skilled migrant Netherlands programme managed by the IND. Understanding this distinction matters because it determines your timeline, costs, and administrative burden as an employer.
A tewerkstellingsvergunning requires a labour market test. This means your company must first prove that no suitable candidate exists within the EU or EEA. The process typically takes several weeks and involves significant paperwork. Furthermore, the UWV may reject your application if they find available local candidates.
The HSM visa, on the other hand, bypasses the labour market test entirely. Instead, it relies on meeting the highly skilled migrant salary threshold. Therefore, when your candidate earns above the required amount, the process moves much faster. As a recognised IND sponsor, Octagon can facilitate HSM visa processing in approximately two weeks. This speed advantage makes the HSM route far more attractive for most international hires.
Who qualifies as a recognised sponsor for the highly skilled migrant programme?
Only companies with recognised sponsor status from the IND can apply for HSM visas. The IND grants this status after reviewing your organisation’s track record, financial stability, and compliance history. However, obtaining recognised sponsor status takes time and effort. Many companies expanding to the Netherlands do not yet have a local entity, which makes this impossible.
This is precisely where an employer of record becomes valuable. Octagon holds recognised IND sponsor status, which means your company can hire a highly skilled migrant Netherlands candidate without establishing your own Dutch entity. In addition, Octagon handles the full visa application process, salary administration, and employment contract. Consequently, your new hire can start working in the Netherlands within weeks rather than months.
What salary components count toward the HSM threshold?
Not every payment you make to an employee counts toward highly skilled migrant requirements. The IND only considers fixed, guaranteed gross salary. Therefore, variable bonuses, overtime payments, or one-time allowances do not count. This distinction catches many employers off guard.
The following components typically count toward the threshold:
- Fixed gross monthly salary as stated in the employment contract
- Fixed allowances that are guaranteed and unconditional
- Thirteenth-month payment, if contractually guaranteed
The following components typically do not count:
- Holiday allowance (8%), which is excluded from the calculation
- Performance bonuses or variable pay
- Overtime compensation
- One-time signing bonuses
- Benefits in kind such as a company car or housing
Because of these rules, you must structure the employment contract carefully. The fixed salary alone must meet or exceed the threshold.
Can your company use the 30% ruling alongside the HSM visa?
Yes, eligible highly skilled migrant Netherlands employees can benefit from the 30% ruling. This Dutch tax facility allows employers to pay up to 30% of the employee’s salary as a tax-free allowance. It compensates for the extra costs of living and working abroad. As a result, it significantly increases the net take-home pay for your international hire.
However, the 30% ruling has its own eligibility requirements. The employee must have lived more than 150 kilometres from the Dutch border before their employment started. Additionally, they must possess specific expertise that is scarce in the Dutch labour market. The highly skilled migrant salary threshold often serves as a proxy for this requirement.
What happens if the salary drops below the HSM threshold?
If the highly skilled migrant salary falls below the required threshold, serious consequences follow. The IND can revoke the HSM visa, which means your employee loses their right to work and live in the Netherlands. Therefore, monitoring salary levels is an ongoing obligation, not a one-time check.
Several situations can cause the salary to dip below the threshold unexpectedly. For instance, unpaid leave, a reduction in working hours, or a salary adjustment can all trigger non-compliance. In addition, the annual threshold increase on 1 January may push an existing salary below the new minimum.
Employers must proactively review salaries against the updated thresholds each year. If an issue arises, acting quickly matters.
How does the process work when you want to migrate to Amsterdam and hire through an employer of record?
When your company finds the right candidate abroad and wants them to work in Amsterdam or anywhere else in the Netherlands, the process follows a clear path. First, you define the role, salary, and working conditions. Then, the employer of record, in this case Octagon, drafts a locally compliant employment contract that meets the highly skilled migrant salary threshold.
Next, Octagon submits the HSM visa application to the IND as a recognised sponsor. Because Octagon already holds this status, the application moves through the fast track. Processing typically takes around two weeks. Meanwhile, Octagon also handles the following steps:
- Registration with Dutch tax authorities and social security
- 30% ruling application where eligible
- Payroll setup including monthly salary payments and tax filings
- Onboarding support and ongoing HR administration
Throughout this entire process, your company retains full control over the employee’s role, responsibilities, salary structure, and benefits. Octagon manages the legal and administrative side so you can focus on your business.
Why does IND sponsor status matter when hiring a highly skilled migrant?
IND recognised sponsor status is not just a formality. It directly determines how fast and how smoothly the visa process runs. Without it, your company simply cannot sponsor an HSM visa. Therefore, this status is a prerequisite, not an advantage.
Obtaining recognised sponsor status independently requires your company to have a registered Dutch entity. The IND reviews your business continuity, payment history, and compliance record. This process takes time, and not every company qualifies on the first attempt.
By working with Octagon, your company immediately benefits from established IND sponsor status. Octagon has maintained this status for years, with a strong compliance track record. As a result, HSM visa applications submitted through Octagon move through the fast-track process reliably.
Octagon exists to empower companies to grow internationally. By handling employment compliance, payroll, and visa administration, Octagon reduces the risk of costly mistakes. Your company retains full transparency and complete control over salary, benefits, and working arrangements for every employee.
Frequently asked questions
What is the highly skilled migrant salary threshold in the Netherlands?
The highly skilled migrant salary threshold is a minimum gross monthly income set by the IND. It changes every year on 1 January. The amount depends on the employee’s age, with a lower threshold for those under 30. Always verify the current figures on the IND website before starting your application.
What is a tewerkstellingsvergunning and when do you need one?
A tewerkstellingsvergunning is a standard dutch work permit issued by the UWV. You need one when your candidate does not qualify for the HSM visa programme. It requires a labour market test, which means proving no suitable EU or EEA candidate is available for the role.
How long does the HSM visa process take in the Netherlands?
The HSM visa process typically takes around two weeks when submitted through a recognised IND sponsor. This is significantly faster than a tewerkstellingsvergunning, which can take several weeks or longer. Working with a recognised sponsor like Octagon ensures the fast-track timeline.
Can you hire a highly skilled migrant without a Dutch entity?
Yes, you can hire a highly skilled migrant Netherlands employee without setting up a local entity. An employer of record with recognised IND sponsor status acts as the legal employer. This allows your company to onboard talent in the Netherlands compliantly and quickly.
Does the 30% ruling affect the highly skilled migrant salary calculation?
No, the 30% ruling does not reduce the salary threshold requirement. The IND calculates the highly skilled migrant salary based on the gross amount before applying the 30% ruling. However, the ruling does increase the employee’s net income by making part of the salary tax-free.
What happens if you pay below the HSM salary threshold?
If the salary falls below the required threshold, the IND can revoke the HSM visa. This means the employee loses the right to work and reside in the Netherlands. Employers must monitor salaries against updated thresholds every year to maintain compliance.
How do you migrate to Amsterdam to work for a foreign company?
Companies that want their international hire to migrate to Amsterdam use an employer of record with IND sponsor status. The EOR handles the HSM visa application, employment contract, and payroll. The employee works exclusively for the foreign company while being legally employed through the EOR in the Netherlands.
Is a tewerkstellingsvergunning harder to get than an HSM visa?
Generally, yes. A tewerkstellingsvergunning requires a labour market test and involves more documentation. The HSM visa only requires meeting the salary threshold and using a recognised sponsor. Most employers prefer the HSM route because it is faster and more predictable.
