Our Expertise
Managing a global workforce in the Netherlands
The Netherlands is known for its employee-friendly regulations, strong social security system, and emphasis on work-life balance. Businesses must navigate these complexities, including adherence to the Dutch Civil Code and compliance with sectoral agreements. TopSource Worldwide offers invaluable assistance in this regard, providing expert EOR services tailored to the unique requirements of the Dutch labour market.
Extensive expertise
Our team of experienced, knowledgeable staff collectively provide up-to-date employment information across 180 countries, so you can always get accurate advice.
Entity-free employment
Feel free to hire employees from all over the world without being weighed down by setting up entities, running complex payroll or recruiting a hiring team.
Payroll without hassle
Have the confidence that your staff will always be paid accurately and on time, so that you can focus on your core business activities and work towards your success.
Always-on support
Access helpful, relevant, personalised advice whenever you need it, along with expert-led recruitment policies and tried-and-tested HR best practices.
"With TopSource we were able to have employees hired or maintained in Nutreco without having to establish an entity in these countries for only 1-2 employees. I think most countries are covered by TopSource, so they can help us with almost all cases. Good advice on conditions and direct contact with employees. Invoicing done directly to the company. An easy process compared to hiring employees by ourselves."
Annette van Duijnhoven
”We searched the market for a local payroll vendor in 2014 and we chose TopSource as our partner. We were looking for error-free and timely payroll processing and TopSource Worldwide delivers this, saving us time and money. We have worked together for 8 years now and would recommend them to anyone."
Praveen Lihinar
Personalised Employer of Record services in the Netherlands
TopSource Worldwide offers personalised Employer of Record (EOR) services tailored to meet the specific needs of your business in the Netherlands. This includes handling employee onboarding, payroll processing, tax compliance, employee benefits management, and HR support. Our EOR services ensure that your business meets all legal and regulatory requirements, providing a hassle-free solution to manage your Netherlands-based employees.
End-to-end Netherlands payroll services
Looking to expand into the Netherlands? Our unparalleled expertise in global payroll services ensures that your business can seamlessly navigate the complexities of payroll on a global scale, supporting your Netherlands expansion initiatives.
Global entity management
Venturing into the Dutch market can be both exciting and challenging. With distinct business regulations, cultural nuances, and economic landscapes, it's essential to have a clear roadmap for your business establishment journey.
Accounting
Whether your goal is to process your purchase-to-pay transactions with minimum errors or manage your expense claim procedure, our team of experts can handle your accounting responsibilities, allowing you to focus on your core business and save time and money.
Global EOR services
Managing a diverse global workforce can be complex. This is where TopSource steps in as an invaluable employer of record services partner for companies seeking to expand their global reach while ensuring compliance with local employment laws and regulations.
Global Expansion Simplified
How to do business in the Netherlands
Entering the Dutch market presents a mix of excitement and challenges. Given unique business regulations, cultural intricacies, and economic dynamics, a well-defined roadmap is crucial for a successful business establishment.
TopSource Worldwide is with you at every stage. Whether it's navigating local regulations or facilitating seamless operational transitions, our expertise ensures a swift and efficient process for establishing your business in the Netherlands.
Netherlands Insights
Key insights into the Netherlands' landscape
VAT rates: The Netherlands has a standard Value Added Tax (VAT) rate of 21%, as well as reduced rates of 9% and 0% for specific goods and services.
Ease of Doing Business rank: The Netherlands ranks 36th in the Ease of Doing Business Index, indicating a somewhat favourable business environment.
Consumer Confidence Index: The consumer confidence index of the Netherlands rose to 98.26 in September of 2023.
Employee maternity/paternity leave: Maternity leave is typically 16 weeks, and paternity leave is 5 days, with additional parental leave options.
Employee termination period: Standard notice for termination varies but is typically 1 to 4 months, depending on employment contract terms and duration.
Employee salary pay date: Wages are commonly paid monthly, with specific pay dates outlined in employment contracts and subject to labour laws.
Bank holidays: Public holidays in the Netherlands include New Year's Day, King's Day, Liberation Day, Ascension Day, Pentecost, Christmas, and other regional holidays.
An overview of employing in the Netherlands
Salary currency
Euros (€)
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.
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.
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