An overview of employing in the Netherlands
Salary currency
Euros (€)
Salary pay date
It’s not uncommon for salaries to be paid around the 25th of each month. Here at TopSource Worldwide, salaries are paid on or by the last working day of the month.
Bonus
There’s no specific requirement to include a bonus in the contract.
Employers must be registered with an ‘Arbodienst’ provider, a company which helps re-integrate employees who are sick back into the workplace. They also seek to support employers to reduce illness-related absence, minimise work-related risks and ensure a healthy and motivated workforce.
TopSource Worldwide is affiliated with ArboNed for such services.
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The Dutch social security system consists of national insurance, employee insurance and medical insurance.
The national insurance scheme comprises of state pension (AOW), surviving dependents (ANW) and exceptional medical expenses (AWBZ).
National insurance contributions and salaries tax are withheld by the employer from an employee’s salary and then paid to the Dutch Tax and Customs Administration.
Employees are to take out their own private health insurance as per the Health Insurance Act (Zorgverzekeringswet). The insured individual pays a premium to the insurance company which is determined by the insurer. The Health Insurance Act (ZVW) provides an income-related contribution to be paid by the insured person: the higher the salary, the higher the contribution.
Individuals can choose to take out supplementary insurance to cover anything not included in their health scheme. There’s a mandatory excess of €385 (correct for 2021) to be paid for claiming on the scheme despite having to pay a standard premium.
An overview of the main statutory benefits
The maximum probationary period under Dutch law is two months for indefinite contracts or contracts of at least two years, otherwise only one month’s probation is allowed. Contracts shorter than six months don’t allow for a probation period.
It’s possible to terminate the employee’s contract during the probationary period with immediate effect should they not be meeting the required standards of performance; however, protocols must be observed — TopSource Worldwide can advise clients on this.
There’s no specific action required to inform employees they have passed the probationary period.
- A vacation allowance equal to 8% of the gross salary earned from 1 June to 31 May is paid in June each year.
- Vacation allowance accrues each month and needs to be paid out when employees exit.
- The monthly salary cited in the employment contract does not include the 8% vacation allowance.
Full-time employment is usually 36–40 hours per week. The Working Hours Act (ATB) sets the maximum working hours per week to 60; however, an employee must not work the maximum number of hours every week.
• Per week during a four-week period: on average 55 hours per week
• Per week during a 16-week period: on average 48 hours per week
If an employee works for more than five and a half hours, they’re entitled to at least 30 minutes of 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.
Dutch law does not provide a legislative regulation for overtime. Overtime hours can be accrued as compensation hours that can be added to leave entitlement. This should be agreed in the contract of employment.
TopSource Worldwide doesn’t have an occupational pension scheme in the Netherlands. We can facilitate voluntary employers’ contributions to be paid directly to the employee, who is responsible as to where the funds are invested.