Octagon Guide for the Average Salary in the Netherlands

Understanding the average salary in the Netherlands can be confusing for internationals. Salary structures, social premiums, and benefits all play a role in how pay is calculated. Many newcomers are unsure how gross and net salaries differ or how the Dutch minimum wage system works.

At Octagon Professionals, we created this guide to help you understand how salaries work in the Netherlands. We will explain minimum wages, salary calculations, and income requirements for expat employees.

Gross Income Versus Net Salary in the Netherlands

When discussing the average salary in the Netherlands, it’s important to understand the difference between gross and net income. Dutch employers usually refer to the gross (bruto) amount when talking about salary.

Gross income is the total amount you earn before taxes and other deductions.
Net income, or netto salary, is the amount you take home after income tax, social security payments, and pension contributions are deducted.

Employers may also consider benefits like the 30% ruling when calculating your net salary. Each benefit has its own tax implications, which can affect your total take-home pay. If you’d like to estimate your pay, you can use a salary calculator Netherlands tool for an accurate overview.

Minimum Wage in the Netherlands (2024 Update)

The Dutch government reviews the average salary in the Netherlands and the minimum wage every six months, in January and July. From 1 January 2024, the minimum wage is calculated on an hourly basis instead of monthly or weekly.

The minimum wage depends on the worker’s age and peaks at age 21. Anyone aged 15 to the official pension age is entitled to at least the minimum wage plus holiday allowance. The only exceptions are interns and apprentices.

Employers now use the hourly rate to calculate monthly salaries based on contracted working hours, ensuring the average salary in the Netherlands stays aligned with current labour standards.

Employers now use the hourly rate to calculate monthly salaries based on contracted working hours. Hourly Minimum Wage in the Netherlands (as of 2024):

Minimum Salary Requirements for Expat Employees (2024)

For international employees on a highly skilled migrant visa, the Dutch government applies specific minimum salary requirements. These criteria ensure that salaries meet the national standard for skilled professionals.

*Please note that these gross salary amounts exclude holiday allowance.

Reduced Salary Criteria in the Netherlands

In some cases, employers can apply a reduced salary criterion when hiring non-EU professionals. This applies when:

1. The employee applies for a highly skilled migrant permit during or right after an orientation year for highly educated persons.
2. The employee previously held an orientation year permit and now applies for a highly skilled migrant visa within three years of graduation, PhD completion, or research expiry.
3. The employee never had an orientation year permit but meets the same conditions (graduated, earned a PhD, or completed research) and applies for the visa within three years.

You can read more about the orientation year visa on our blog or check the official IND website for updated requirements.

Set Up Your Pay Structure and Plan salary Netherlands with Octagon Professionals

With over 30 years of experience supporting international companies in the Netherlands, Octagon Professionals helps employers create compliant pay structures aligned with Dutch standards.

Our HR specialists can guide your company in setting up salary frameworks, ensuring full compliance with Dutch labour laws.

Contact us today to schedule a consultation with one of our experts and start optimising your payroll process.