Employing in the Netherlands.

Minimum wage

The statutory minimum wage is EUR 14.99 gross per hour for employees aged 21 and over from 1 July 2026, with fixed lower hourly youth rates for ages 15 to 20.

EUR 14.99 · from 1 July 2026per hour, gross, employees aged 21 and over (statutory hourly minimum wage; lower fixed youth rates for ages 15 to 20)

• From 1 July 2026, per hour gross: 21 and over EUR 14.99; 20 EUR 11.99; 19 EUR 8.99; 18 EUR 7.50; 17 EUR 5.92; 16 EUR 5.17; 15 EUR 4.50
• 2026 youth percentages of the adult rate: 20 80%; 19 60%; 18 50%; 17 39.5%; 16 34.5%; 15 30%
• Since 1 January 2024 there is no fixed monthly, weekly or daily minimum: pay per week or month depends on the hours worked
• Amounts are set twice a year, on 1 January and 1 July

Changes on 1 January 2027: EUR 15.29 gross an hour from age 21; the youth percentages rise (age 20: 87.5%, EUR 13.38). Published Source: Regeling van de Minister van Sociale Zaken en Werkgelegenheid van 29 oktober 2026, nr. 2026-0000391146, tot indexatie van het wettelijk minimumloon en bekendmaking van het wettelijk minimumloon per 1 januari 2027

Employer social security contributions

Employers pay unemployment (2.74% or 7.74%), disability (6.27% or 7.63%, plus a 0.50% childcare surcharge), a variable Whk premium and a 6.10% health insurance levy, on pay up to EUR 79,409 a year.

15.61% to 21.97% plus a variable Whk premium, on pay up to EUR 79,409 a year · from 1 January 2026percent of gross pay, employer-paid, 2026 (sum of AWf, Aof, Wko surcharge and Zvw employer levy; Whk added separately)

• AWf (unemployment, WW): 2.74% low rate for a written open-ended contract that is not an on-call contract; 7.74% high rate otherwise, with five exceptions
• Aof (disability): 6.27% for small employers (premium wage bill in 2024 up to EUR 1,082,500); 7.63% for medium and large employers
• Wko childcare surcharge: 0.50%, paid on top of the Aof premium
• Whk (WGA and ZW-flex): differentiated by employer size and sector or own claims record, notified by the tax authority; small-employer sector rates range from 0.76% to 6.63% in 2026; average Whk premium 1.52%
• Zvw employer levy (werkgeversheffing Zvw): 6.10%
• Ceiling: maximum premium wage EUR 79,409 a year (EUR 6,617.41 a month; EUR 6,108.38 per 4 weeks), the same for the employee insurances and the Zvw
• Ufo premium 0.68% applies only to public-sector employers
• National insurance contributions (AOW 17.90%, Anw 0.10%, Wlz 9.65%) are paid by the employee, withheld with wage tax in the first band (pay up to EUR 38,883)

Our sum of the published rates: unemployment (AWf) 2.74% or 7.74%, disability (Aof) 6.27% or 7.63%, childcare surcharge (Wko) 0.50% and health insurance levy (Zvw) 6.10% make 15.61% to 21.97%; the Whk premium comes on top.

Changes on 1 January 2027: Intended 2027 rates: disability (Aof) 6.67% for small employers and 8.03% for others, average Whk 1.67%, Zvw employer levy 6.27%; unemployment (AWf) and the childcare surcharge unchanged. The 2027 maximum premium wage is not yet published. Proposed Source: XV Sociale Zaken en Werkgelegenheid Rijksbegroting 2027 (Kamerstuk 37 020 XV, nr. 2), section 7.1.1 'Premiepercentages 2027 en meerjarig', table 130

Payroll tax withholding and filing

The employer withholds wage tax and national insurance contributions and files one combined payroll tax return with the Belastingdienst, usually monthly or 4-weekly, filing and paying within one month after each period.

Employer withholds; monthly or 4-weekly return, filed and paid within one month after the period · from 1 January 2026filing and payment frequency and deadline, Belastingdienst

• Payroll taxes (loonheffingen) are wage tax/national insurance contributions, employee insurance premiums and the income-related Zvw contribution, all on the one return (aangifte loonheffingen); no separate social security return
• Return periods are usually a calendar month or 4 weeks (13 periods a year); the return must be filed digitally
• 2026 deadlines (return and payment): January due 28 February 2026; December due 31 January 2027; 4-weekly period 1 (1 to 25 January) due 25 February 2026
• Each employer receives an annual payroll tax return letter (aangiftebrief loonheffingen) in November with its return periods
• Authority: Belastingdienst (Netherlands Tax Administration), https://www.belastingdienst.nl

Salary payments a year and holiday allowance

Salaries are usually paid monthly or every four weeks; a holiday allowance of at least 8% of gross pay is due, paid in June unless agreed otherwise, and there is no statutory 13th month.

12 (monthly) or 13 (4-weekly); 8% holiday allowance; no statutory 13th month · from 1 January 2026payments a year and statutory extra pay

• Holiday allowance (vakantiebijslag): at least 8% of the wage, counting pay up to three times the minimum wage (Minimum Wage and Minimum Holiday Allowance Act, art. 15)
• Above three times the minimum wage, a lower or no holiday allowance may be agreed in writing
• A collective agreement may exclude it if pay plus allowance is at least 108% of the minimum wage (art. 16)
• Paid in June for the year to 31 May; other timing by written agreement but at least once a calendar year; the accrued amount is paid when employment ends (art. 17)
• Civil Code 7:623: wages fixed by time are paid after each pay period of not less than one week and not more than one month (extendable in writing, up to a quarter for monthly pay)
• End-of-year payments or a 13th month arise only from a collective agreement or the contract

Paid annual leave

Employees earn statutory paid leave of at least four times their agreed weekly working hours each year, which is 20 days for a full-time five-day week.

4 x the agreed weekly working hours (20 days on a five-day week) · from 1 January 2026statutory paid leave per year

• Civil Code 7:634(1): at least four times the agreed weekly working hours per full year
• Pro rata for part of a year (7:634(2))
• Examples from business.gov.nl: 4 days a week gives 16 days; 40 hours a week gives 160 hours a year

Sick pay

The employer pays at least 70% of wages for up to 104 weeks of sickness, and in the first 52 weeks no less than the statutory minimum wage.

Employer pays at least 70% of wages for up to 104 weeks (not below minimum wage in the first 52 weeks) · from 1 January 2026employer-paid wage continuation during sickness

• 70% applies to wages up to the maximum daily wage under article 17(1) of the Wet financiering sociale verzekeringen
• Up to two waiting days may be agreed (7:629(9))
• A collective agreement or contract may give more; 100% for illness related to organ donation, pregnancy or childbirth
• The 104 weeks can be extended, for example by a UWV wage sanction of up to one year where reintegration efforts fall short
• Six weeks only for domestic workers working fewer than four days a week for a household, and for employees past state pension age

Running payroll without a local entity

A foreign employer without a Dutch entity registers with the Belastingdienst using the 'Registration Form Foreign Companies' and receives a payroll tax number for wage tax and social security contributions.

Register with the Belastingdienst for a payroll tax number (loonheffingennummer); no Dutch entity needed · from 1 January 2026registration for payroll tax and social security

• Form: 'Aanmelding Onderneming buitenland' (Registration Form Foreign Companies); payroll tax number and payroll tax return letter usually within one week
• If employee insurance premiums are due: a sector letter (within 8 weeks, usually 3) and a Whk rate letter (within 4 weeks)
• Wage tax: a non-resident employer is a withholding agent only with a Dutch permanent establishment or permanent representative, or if it keeps the payroll in the Netherlands and registers as withholding agent (Wage Tax Act 1964, art. 6(2))
• Social security: where the employee is covered by Dutch social security (EU Regulation 883/2004, treaties), the employer pays the employee insurance premiums and the Zvw employer levy itself
• One registration and one payroll tax return cover tax and social security; the Belastingdienst collects both

Pension

There is no general duty to offer a workplace pension, but participation is compulsory where a mandatory industry-wide pension fund or collective agreement applies; the state pension (AOW) is financed partly by employee contributions.

No general obligation; compulsory where a mandatory industry-wide pension fund or collective agreement applies; state pension (AOW) via contributions · from 1 January 2026workplace and state pension

• Mandatory industry-wide pension funds: the minister can make participation compulsory for a sector at the request of a representative majority (Wet verplichte deelneming in een bedrijfstakpensioenfonds 2000, art. 2)
• A collective agreement can also require a pension; occupational schemes apply to some professions; otherwise the employer decides
• About 90% of employees have a supplementary pension; the employer usually pays about two thirds of the premiums
• AOW premium 17.90% (employee), withheld with wage tax in the first band; the AOW fund is topped up by government contributions

Probation and notice

Probation may not exceed two months, with one month or none for shorter fixed-term contracts; statutory employer notice is one to four months by length of service, and one month for employees.

Probation up to 2 months; employer notice 1 to 4 months by length of service, employee 1 month · from 1 January 2026statutory maximum probation and statutory notice

• Probation (7:652): open-ended contract up to 2 months; fixed-term of 2 years or more up to 2 months; fixed-term over 6 months but under 2 years up to 1 month; no fixed end date up to 1 month; none for contracts of 6 months or less; must be agreed in writing and equal for both sides
• Employer notice (7:672(2)): under 5 years' service 1 month; 5 to under 10 years 2 months; 10 to under 15 years 3 months; 15 years or more 4 months
• Employee notice: 1 month (7:672(4)); can be extended in writing to at most 6 months, with the employer's period then at least double
• Notice runs to the end of the month unless agreed otherwise in writing or by custom (7:672(1))
• Employer notice is 1 month once the employee has reached state pension age (7:672(3))