Employer of Record in the Netherlands
Employ talent in the Netherlands without a local entity — social security, the 8% holiday allowance (vakantiegeld), 30% ruling applications and CAO compliance handled by local specialists.
Why hire in the Netherlands through an EOR
The Dutch labour market blends a streamlined tax structure with strict statutory obligations: a mandatory 8% holiday allowance, sector collective agreements (CAOs), and a specialised international tax incentive. Through TopSource EOR, that entire operational layer is already running.
Hire in the Netherlands without setting up an entity
The Netherlands is a premier European hub for international talent, and its payroll carries features found almost nowhere else. Every employee is legally entitled to a holiday allowance (vakantiegeld) of at least 8% of gross annual salary, paid as a lump sum in May. Qualifying international hires can access the 30% ruling, receiving up to 30% of salary tax-free — a powerful recruitment tool for senior tech and finance roles facing Dutch income tax up to 49.5%.
Most positions fall under a sector collective agreement (CAO) that sets pay scales and pension obligations, and total employer social overhead runs to roughly 18-22% on top of gross. An Employer of Record removes all the setup: TopSource legally employs your Dutch staff, accrues the 8% holiday allowance, files 30% ruling applications with the Belastingdienst, enforces CAO compliance, and remits social security — so you can hire senior talent into the Netherlands fast.
Calculate Your Employee Costs in the Netherlands
Enter a gross salary to see the full monthly cost of a hire in the Netherlands — social security, the 8% holiday allowance and sector pension included in your total spend per employee.
Employment Cost Calculator
*Indicative figures only and not definitive legal advice. Local regulations change frequently. Consult an expertNetherlands
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How EOR in the Netherlands works: the process through TopSource
Employer Costs in the Netherlands at a Glance
Employer Costs in the Netherlands Explained
Dutch employers should budget roughly 18-22% in mandatory social security contributions on top of gross salary, plus a statutory 8% holiday allowance (vakantiegeld) paid annually in May. Employee-insurance contributions are capped at a maximum base of €79,409. With sector CAO pension obligations added, total employer burden typically lands around 30-40% above gross base salary.
EOR or entity setup: which one fits your Dutch expansion plan?
Incorporating a Dutch BV gives long-term autonomy but requires corporate tax registration, a local bank account, and ongoing management of CAO terms, the 30% ruling as a withholding agent, and the two-year sick-pay obligation. An EOR is the immediate, low-risk alternative — hire in days while staying fully compliant — and usually the right call until Dutch headcount and permanence justify the overhead.
Consider an EOR if you’re:
- Hiring your first one to five people in the Netherlands
- Recruiting senior international talent who qualify for the 30% ruling
- Still validating the market before committing capital to a BV
- Working to a hiring deadline measured in weeks, not months
Why TopSource for Employing in the Netherlands
TopSource for Employer of Record, global payroll or any other of our services represent a simpler, more reliable and transparent option.
We don’t hide fees or sneak price increases, and we don’t lock you in for employees you don’t use. You get a dedicated point of contact, reachable by phone, for the questions the Netherlands raises constantly — from 30% ruling applications to which CAO applies and how the 8% holiday allowance is handled. We blend HR advisory with in-market expertise, and stay flexible around your business.
“Their expertise and understanding of the unique hiring, payment, and human resource practices in each country has been nothing short of outstanding. Our Client Success Manager, has done just that … ensured our success. Her availability and willingness to engage on a personal level has made all the difference.”
“Excellent service, especially from our account manager who has gone above and beyond to help us use the platform effectively. Our manager, significantly simplifies my workload. It is like having your own TopSource HR representative on your team.”
“TopSource has been our go-to resource for international hiring. They are responsive, thorough, respectful and knowledgeable. The Client Success team has provided us with the utmost customer service, and the more we use TopSource, the more, it gives us access to more resources and knowledge.”
More than an Employer of Record.
Employer of Record services are only one way that we help you accelerate your global growth goals. From talent advisory to entity management, we give you the tools you need to research, enter and expand into your key markets.
Market Selection Advisory
Compare available talent, compensation, additional costs and regulations across different countries
Read more
Salary Benchmarking
Identify and prioritize markets for growth based on talent, cost & regulations
Read more
Global Skills Analysis
Map skill availability by region to align talent strategies with business goals..
Read more
Talent Acquisition
Find, hire & onboard the highly skilled team members you need in each locality.
Read more
Talent Strategy Optimization
Optimize your talent strategy to enable your organization to achieve it’s global ambitions.
Read more
Frequently asked questions
Total employer cost typically runs 30-40% above gross salary: roughly 18-22% employer social security (capped at a €79,409 base), the mandatory 8% holiday allowance, and any CAO pension contributions. We quote the exact all-in figure per hire — including whether the 30% ruling applies — before you commit.
The 8% holiday allowance is a mandatory statutory payment equal to 8% of gross annual salary, accrued monthly and paid as a lump sum, usually in May. It is a legal obligation under the Minimum Wage and Minimum Holiday Allowance Act — not a discretionary bonus — and sits on top of the agreed salary.
The 30% ruling lets qualifying employees recruited from abroad receive up to 30% of salary tax-free for up to five years, subject to Belastingdienst approval and a minimum taxable salary of €48,013 after the exemption. The rate drops to 27% from 2027. As the employer of record, we apply on the employee’s behalf and structure the split correctly.
A CAO (collectieve arbeidsovereenkomst) is a sector collective agreement setting binding pay scales, hours and pension terms. Most Dutch roles fall under one, and once it is declared universally binding, it applies even where it is not named in the contract. Getting the CAO classification right is the first thing we do for every Dutch hire.
Dutch employers must pay at least 70% of salary for up to 104 weeks (two years) during illness — many CAOs require 100% in the first year — plus managing reintegration under the Gatekeeper Improvement Act. As the employer of record, TopSource carries and manages this obligation.
Choose an EOR for speed, zero entity overhead and instant compliance when hiring one to ten people — especially senior hires needing the 30% ruling. Incorporate a BV once local headcount scales and a permanent base is justified. We transfer the team across when the time comes.
Hire Anywhere with Our EOR Services
We help you legally employ and pay talent across 180+ countries—so you can scale faster.
