Hire talent in The Netherlands with EOR
Our Employer of Record (EOR) services in the Netherlands provide a tailored solution to your business needs without the need to establish a physical entity, while ensuring ​compliance with local regulations. With our professional support, you can confidently build, pay, and manage your remote team in the Netherlands, so you can focus on your business’s growth and success.
- Fully licensed and compliant
- Secure and transparant payments
- Fast and worry-free
Capital City
Amsterdam
Currency
Euro (€/EUR)
Language
Dutch, English
Population Size
17,669,457
Facts & Stats
Capital City
Amsterdam
Currency
Euro (€/EUR)
Language
Dutch, English
Ease of doing Business
Very Easy
Gross Domestic Product
1.009 trillion USD
Working Hours
36 - 40 hours per week
Average Wage
€2,855 per month
Average Education Level
45% of 25-64 year-olds have tertiary attainment
Capital City
Amsterdam
Currency
Euro (€/EUR)
Language
Dutch, English
Ease of doing Business
Very Easy
Gross Domestic Product
1.009 Trillion USD
Working Hours
36-40 hours a week
Average Wage
€2,855 per month
Average Education Level
45% of 25-64 year-olds have tertiary attainment
Why choose the Netherlands
How EOR in the Netherlands works
- Work is performed individually.
- Employees receive compensation for their work.
- There exists a hierarchical relationship between employer and employee.
- Contractors work independently.
- There is no hierarchical relationship between employer and contractor.
- Contractors are not required to perform the work personally.
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Why businesses choose us
Our Competitors
What you can expect
Hiring through an Employer of Record or EOR in The Netherlands involves several crucial steps to ensure compliance and efficiency in your hiring process:
No need to limit your growth
We can assure a compliant legal entity for your business to grow in the country of your choice.
Decide between an EOR in the
Netherlands and a legal entity
Choose between establishing a legal entity or utilizing an EOR service in the Netherlands based on factors like resources, company size, and expansion plans. Setting up a legal entity requires registration, bank account opening, and compliance with local laws, while an EOR handles these tasks on your behalf.
Choose the best EOR for your business
Select an EOR in the Netherlands that aligns with your needs, considering factors like geographic coverage, entity ownership, data protection measures, automation capabilities, and support services. Prioritize EORs with expertise in the countries where you plan to hire and robust support systems.
Hire and onboard your employees
Run payroll
After collecting necessary employee details and signing employment agreements, the EOR in the Netherlands manages payroll processing. Dutch employees receive their salaries in Euros, with taxes withheld according to local laws. Employers must pay payroll taxes and contributions, including income tax, social security, and mandatory healthcare, by specified deadlines to avoid penalties.
The cost of EOR services in the Netherlands
The cost of EOR in the Netherlandsvaries based on factors such as the number of employees, the complexity of local regulations, and the specific services required. As most other providers use intermediaries and we do not, at WTS Energy we can ensure competitive pricing that is tailored to your needs. Contact us for a customized quote.
Taxes and payroll
Dealing with taxes and payroll in The Netherlands can be complex, but we’re here to make it easy by covering the essential tax responsibilities for both employers and employees, and the different types of payroll processes.
Employer taxes
In the Netherlands, employers are subject to several mandatory taxes. These include:
Payroll Tax (Loonbelasting) Employers deduct wage tax from their employee’s salaries. This amount depends on the employee’s income.Employee taxes
- General Unemployment Fund contribution (AWf): Between 2.64% and 7.64% of the employee’s gross salary. Employers contribute a lower unemployment benefit (WW) rate for employees with permanent contracts and a higher rate for those with temporary or flexible contracts.
- Differentiated premium Invalidity Insurance Fund (Aof): The high Aof premium is 7.11% and the low Aof premium is 5.82%.
- Childcare Act (Wko): Employers pay the Wko surcharge on top of the low or high premium Aof premium. The surcharge for 2023 is 0.50%.
- Differentiated contributions under the Return to Work Fund (Whk): 1.53% based on a maximum of €66,956 EUR of taxable base salary
- Health Insurance Contribution (Zorgverzekeringswet): Employers pay a contribution rate of 6.95% of the employee’s gross salary, capped at an annual maximum of €66,956 EUR of taxable base salary.
Employee taxes
Employees in the Netherlands are also subject to several taxes and contributions, which are typically withheld from their salaries by their employers:
Income Tax (Inkomstenbelasting): The Dutch income tax rates for 2023 are as follows:
Social Security Contributions
This applies to all residents of the Netherlands. It covers benefits for old age, death, long-term disability, certain medical expenses, and child benefits. Normally the social security contribution is already included in the income tax. The total social security premium is 27.65%, which is allocated as follows:
Health Insurance Premium:
Employees are required to have basic health insurance from a private insurer. This typically ranges from €120 to €150 per month. Typically, employees are instructed to contract their own health insurance which can be subsidized by the government on the basis of salary. For more information on the healthcare benefit, read this page.
Types of payroll
No need to limit your growth
We can assure a compliant legal entity for your business to grow in the country of your choice.
Internal Payroll
Companies with a local entity in The Netherlands may choose to manage payroll internally. This requires a dedicated payroll team familiar with Dutch laws and regulations.
Outsourced Payroll
Many companies opt to outsource payroll to third-party providers who handle all payroll-related tasks, including tax withholdings, compliance, and reporting.
Employer of Record (EOR)
Using an EOR service allows companies to employ staff in the Netherlands without establishing a local entity. The EOR handles all aspects of payroll, tax compliance, and employee benefits.
Payroll via Professional Employer Organization (PEO)
Similar to EOR, a PEO provides comprehensive HR services, including payroll management. The PEO becomes the employer of record for tax purposes, simplifying compliance for the client company. The difference between EOR and PEO, is that the PEO company also manages HR and administrative tasks. Your employees are legally the employees of the EOR company. However, with a PEO, there is a co-employment setup in place.Â
Salary, compensation & benefits
In The Netherlands, understanding salary structures, compensation, and benefits is essential for attracting and retaining top talent. This overview covers the minimum wage, diverse compensations and benefits, and the pension system, helping you provide fair and competitive remuneration to your employees. This knowledge is crucial for maintaining a motivated and financially secure workforce.
- Private pension fund
- Transport allowance
- 13th month’s salaryFlexible
- working hours and remote work
- Education reimbursement
- Career development training
The state or AOW pension
In general, everybody who reaches the state pension age in the Netherlands will receive this basic state pension. Everyone who resides or works in the Netherlands builds up this pension over the years. The state pension age (AOW age) is gradually changing, until it reaches 67 years in 2024. The amount of state pension you receive depends on the pension rights accrued during your working life in the Netherlands. For each year that a person pays health insurance in the Netherlands, they accumulate two percent of the state pension benefit. Additionally, individuals who do not work still accrue state pension rights.
Workplace pension
In the Netherlands, employers typically contribute to their employees' workplace pensions. Each month, employer makes contributions to the pension fund, and an additional amount is often deducted from employees’ salary. This ensures employees automatically save for retirement. Upon retiring, employees will receive monthly payments from this fund, supplementing the basic state pension (AOW).
Individual pension products
The third component of the Dutch pension system comprises individual pension products or supplements. These supplements are predominantly utilized by self-employed individuals and employees in sectors without collective pension funds. This approach allows individuals to independently purchase and oversee pension products or investments, including life insurance, stocks, or real estate, while also benefiting from associated tax incentives.
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When managing employees in the Netherlands, knowing probation periods, termination procedures, Dutch labor laws and working hours is essential. This section provides a concise overview of these key issues to ensure compliance and efficiency in your employment practices.Â
Period of probationÂ
The period of probation in the Netherlands depends on the length of the employment contract and is limited to a maximum of 2 months. This maximum period applies equally to both the employer and the employee. Â
For temporary employment contracts lasting more than 6 months but less than 2 years, or for contracts without an end date, the probationary period cannot exceed 1 month. Â
For permanent contracts or temporary contracts of more than 2 years, the probation period may be up to 2 months. Â
Terminating and giving noticeÂ
Notice periods define termination procedures for both employees and employers. These periods are usually set out in employment contracts and come into play when an employee wishes to resign or when an employer wishes to dismiss an employee for just cause. In cases where notice periods aren’t specified, the legal minimum is one month. However, there are exceptions, such as during a probationary period, for gross misconduct, or for immediate termination.Â
For employers: According to Dutch labor laws, employers must provide notice when terminating an employee’s contract, with the duration of notice contingent upon the length of the employee’s tenure with the company.
For employees: During probation, an employee can resign without notice. For permanent contracts, notice periods typically start on the first of the month and last one month. If a longer notice period is agreed upon, the employer’s notice period must be double the employees. For instance, if the employee’s notice period is four months, the employer’s is eight months.Â
Dutch labor law regulates employment matters in the Netherlands. These regulations apply universally, regardless of where a company is registered. This law covers a wide range of employment-related topics, including trial periods, contracts, paid vacation, notice, and working hours. Â
The working hours
Employees aged 18 and over can work a maximum of 12 hours per day and 60 hours per week. However, these limits are subject to certain conditions. Throughout 16 weeks, the employee cannot work more than 48 hours a week on average. There is an exception to high-level employees and managerial staff whose yearly wages are equal to or exceeding three times the Dutch statutory minimum wage.Â
Overtime: There are no laws in place that regulate overtime. Therefore, the contract between the employer and employee establish the overtime compensation, if any.Â
Leave and holidaysÂ
 In the Netherlands, holidays and leave policies are determined by law to ensure a healthy work-life balance. Here’s what you need to know:Â- Annual Leave: Employees are entitled to a minimum of four times the number of working days in a week. For example, if an employee works five days a week, they are entitled to at least 20 days of paid leave per year.Â
- Sick Leave: In full-time contracts, the employer is required by law to pay at least 70% of the ill employee’s wages for up to two years. Â
- Parental Leave: Starting August 2, 2022, new laws mandate that parents receive 70% of their daily wage for the first 9 weeks of parental leave. Parents can take a total of 26 weeks of leave, with the remaining 17 weeks being unpaid unless specified otherwise by the company policy. The 9 weeks of paid leave must be used within the first year after the child’s birth, while the rest can be taken until the child turns 8.Â
- Maternity Leave: Expectant mothers are entitled to 16 weeks of maternity leave, which can start six weeks before the expected delivery date. During this period, they receive 100% of their salary, funded by the government.Â
- Public Holidays: There are 11 public holidays in the Netherlands, such as New Year’s Day, King’s Day, and Christmas. While not all public holidays are mandatory paid leave days, many companies include them as part of their leave policy.Â
Employee rights
There are various strict Dutch labor laws in place to ensure employee protection. They include rights such asÂ
Equal Treatment: Discrimination based on gender, race, age, sexual orientation, religion, or any other personal characteristic is strictly prohibited.Â
Workplace Safety: Employers are required to provide a safe working environment, complying with the Working Conditions Act (Arbeidsomstandighedenwet). They are also required by law to conduct regular risk assessments to identify any potential hazards in the workplace. Â
Collective Bargaining: Employees have the right to join trade unions and participate in collective bargaining to negotiate better working conditions.Â
Whistleblower protection- For companies with 50 or more employees, the whistleblower Act ensures that employees can report any reasonable suspicion of abuse by their employer or another company that affects public interest. They will be protected from any legal disadvantages or retaliation. Smaller companies without formal whistleblower procedures can report concerns to a supervisor, inspectorate or the House for Whistleblowers.Â
Highly Skilled Migrant Visa
This is for highly skilled workers who meet certain salary thresholds (€4,752 per month for individuals 30 years and older in 2023). The employer must be a recognized sponsor by the Dutch Immigration and Naturalisation Service (IND).
EU Blue Card
Highly skilled workers who meet a higher salary threshold (€5,670 per month in 2023) and have a recognized higher education qualification can apply for this type of visa.
Provisional Residence Permit (MVV)
This visa is intended for people who will stay in the Netherlands for more than 90 days. You must also apply for a residence permit known as the Entry and Residency Procedure.
Single Permit (GVVA)
This is a combined residence and employment permit and is usually employer-sponsored and valid for three years.
ICT (Intra Corporate Transfer) Permit
This visa is intended for employees transferred within a multinational company to work in the Netherlands as a manager, specialist, or trainee.
Startup Visa/Entrepreneur permit
Entrepreneurs starting an innovative business in the Netherlands can apply for this visa which requires a facilitator recognized by the Dutch government.
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The benefits of global EOR
WTS Energy stands out for its industry expertise and global reach. Our professionals have extensive experience in the energy sector, making us uniquely equipped to handle the specific challenges of hiring and managing a global workforce. We provide:Â
Compliance with Local Regulations
Stay on the right side of local laws with EOR services that ensure compliance with labor laws, tax codes, and employment regulations, minimizing legal risks in the energy sector.
Cost EfficiencyÂ
Cut costs and hassle with EOR services, which eliminate the need for local entities and free up resources for your core business activities.
Lightning-Fast Market Entry
Beat the competition by rapidly onboarding skilled professionals with EOR services, ensuring you meet project deadlines and secure contracts quickly.
Tap into Global Talent
Hire the best from around the world! EOR services give you access to a global pool of specialized professionals for your complex energy projects.
Focus on What Matters
Let EOR handle the nitty-gritty of employment management, so you can concentrate on strategic planning, project execution, and driving innovation.
Enhanced Flexibility
Adapt to project needs with ease. EOR services offer the flexibility to scale your workforce up or down without the hassle of permanent local hires.
Reduce Your Risks
EOR services help you navigate regulatory changes and geopolitical challenges, ensuring your workforce management is compliant and robust.
Simplify Payroll & Benefits
Streamline payroll and benefits management across multiple jurisdictions with EOR services, boosting operational efficiency and employee satisfaction.
Get Ongoing HR Backup
Beat the competition by rapidly onboarding skilled professionals with EOR services, ensuring you meet project deadlines and secure contracts quickly.
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of our experts →
How to get started, step-by-step
From our initial contact to a fully compliant legal entity through an EOR in The Netherlands
No need to limit your growth
We can assure a compliant legal entity for your business to grow in the country of your choice.
Consultation and Needs Assesments
We begin with a detailed consultation to understand your specific needs in the energy sector, including project scopes and workforce requirements, then assess your staffing and regulatory needs, analyzing necessary skills and certifications.
Custom Solution DevelopmentÂ
We develop a tailored EOR solution, including payroll, tax compliance, and benefits administration.
Implementation
We manage the onboarding process, ensuring all legal and administrative requirements are met for seamless integration.Â
Ongoing Management
Our team provides continuous support, handling payroll, compliance, and HR issues, ensuring smooth operations.
Feedback and ImprovementÂ
We actively seek feedback to refine and enhance our services, ensuring the best possible experience for both employers and employees.Â
EOR to help you grow
Do you have questions?
What is employer of record in the Netherlands?
An Employer of Record or EOR in the Netherlands is a service provider that handles administrative tasks related to employment, such as payroll, compliance, and HR management, on behalf of companies hiring in the country.
How long does it take to get an EOR in the Netherlands?
Are there risks included with employer of record?
- Online screening to verify qualifications and experience.
- Psychometric and aptitude testing to assess candidates’ mental and skill capabilities.
- Behavioral screening to evaluate candidates’ fit within your company culture.
- Safety awareness checks to ensure adherence to industry safety standards.
- Verification processes including right to work, criminal record, employment, residency, and identity checks.
- Skills competence screening to confirm technical abilities.
When do I convert a contractor to an employee?
My question is not here?
