The Netherlands
Congratulations on your decision to hire employees in the Netherlands! The Netherlands is known for its highly educated and multilingual workforce, making it a popular choice for businesses looking to expand their operations into Europe. The country has a well-developed economy, offering a stable, supportive environment for businesses to grow. Plane makes the hiring process easy for you by providing automated tax document collection, payroll, benefits, and more, while ensuring compliance and maximum efficiency. Still, navigating hiring in a new country can be challenging, so we've compiled the details below to help guide you through how to hire in the Netherlands.
Currency
EUR
Onboarding
2 - 3 weeks
Employer Cost
43.05%
Pay Frequency
Monthly
Public Holidays
10 or 11
6 Considerations Before Hiring in the Netherlands
As an employer in the Netherlands, it is important to have a comprehensive employment contract that outlines the terms and conditions of the employment relationship. The contract should include need-to-know info on compensation, benefits, vacation time, and sick leave policies. Before onboarding a new employee in the Netherlands, take a moment to consider the following questions:
Getting Started with Hiring in the Netherlands
Employment Contract
In the Netherlands, employers can offer two main types of employment contracts: fixed-term contracts and permanent contracts. These contracts can be written or verbal. Permanent contracts have no end date and provide employees with more job security. Fixed-term contracts that specify the duration of employment are available on a case-by-case basis through Plane and subject to approval. Fixed-term contracts are typically used for temporary work or projects that have a specific end date.Employers cannot extend fixed-term contracts indefinitely; these contracts can be renewed up to three times. If you renew a fixed-term contract for a fourth time, or if a fixed-term contract lasts longer than three years, it automatically converts to a permanent contract. Employment contracts must contain clear information on crucial employment terms and conditions, including:
- The name and place of residence of employer and employee
- Where work is performed (and specify if the employer or employee determines this)
- The employee’s job or responsibilities
- The employee’s usual working hours (per day or per week)
- Arrangements on working overtime or swapping shifts
- Salary amount and its individual components, how and when they will be paid
- The employee’s start date
- Term of the contract (if it’s a fixed-term contract)
- The amount of vacation the employee is entitled to, and how you calculate paid leave
- Holiday allowance amount and terms
- Notice period, in the case of termination or resignation
- Duration and conditions of the probationary period, if applicable
- Whether you will offer any paid training or education, if applicable
- Information about pension contributions, if applicable
- A non-compete or non-solicitation clause, if applicable
- Details on any Collective Labour Agreement (CAO) that governs their contract, if applicable
Payroll Timelines and Dates
Pay Frequency: Employee payroll is monthly, with 12 pay periods per year. Pay is distributed on the last business day of the month.Payroll Change Cutoff Dates: To meet payroll deadlines, any changes must be submitted to support@plane.com by the cutoff date. For the Netherlands, the payroll change cutoff date is on the last business day of the previous month. For example, changes to June payroll would need to be received no later than May 31, if May 31 is a business day.Plane sends payroll summaries to admins at the end of the second week of the month. After that, charges are automatically debited. Payroll summaries are also available to admins in their Plane accounts. Payday may vary based on country requirements.
Working Hours
A typical workweek for employees in the Netherlands is 36 to 40 hours from Monday to Friday. However, there are legal limits on how long employees can work, and statutes in place to ensure employees get adequate breaks and rest. Employees may not work more than 12 hours per shift or 60 hours per week. Additionally, employees must receive a break of at least 30 minutes after working for 5.5 hours, and a break of at least 45 minutes after working a shift of 10 hours or more. They also must receive rest periods of at least 36 consecutive hours in a seven-day period or 72 hours in a 14-day period. Dutch law puts limits on how many night shifts employees can work, with night shifts defined as work lasting one hour or more between midnight and 6 a.m. Employees aren’t allowed to work a shift ending after 2 a.m. more than 140 times per year, and no employee may work a total of more than 38 hours between midnight and 6 a.m. in a two-week period. If an employee’s night shift ends after 2 a.m., they must receive at least 14 hours of rest time after it ends, and an employee who works a night shift on three or more consecutive nights must be given 46 consecutive hours off before their next shift.Employers should also be aware of the complex rules regarding on-call time in the Netherlands. An employee may not work more than 13 hours in one 24-hour period, including on-call hours when the employee is called in to work. Additionally, an employee may not be on-call for more than 14 days out of 28, and there must be a minimum of two consecutive days out of every 28 when an employee is not on-call.
Public Holidays
The Netherlands has 10 public holidays (11, every five years):
- New Year’s Day
- Good Friday
- Easter Sunday
- Easter Monday
- King’s Day
- Liberation Day (every five years)
- Ascension Day
- Pentecost Sunday
- Whit Monday
- Christmas Day
- Boxing Day
Compensation
You can use Plane's Remote Compensation Tool to check remote salary data in the Netherlands by job title.The minimum wage in the Netherlands changes frequently, and there are many different types of bonuses to consider. The holiday allowance bonus is the most common, which employers typically pay out in May or June, to encourage employees to go on vacation.
Health Insurance Benefits
The Netherlands provides universal healthcare, which is mostly funded by taxes. However, all Dutch residents must purchase at minimum a Basic Health Insurance plan from private insurers, who are required to accept all applicants. Basic Health Insurance covers most general healthcare needs, but some treatments and medications might not be fully covered. Residents can choose to purchase additional private health insurance, which typically helps cover co-pays, dental care, certain elective surgical procedures, and other costs not covered by government-mandated basic healthcare coverage.Some employers in the Netherlands offer a group health insurance policy for their employees. While employees typically pay their own premiums, some employers may pay for a portion or all of these premiums on their employees’ behalf.
Sick Leave
Sick leave in the Netherlands is quite generous; employees in the Netherlands are entitled to up to two years of sick leave and pay if they are too sick to work. During sick leave, which can last up to two years, employers are required to pay at least 70% of the employee's salary. For the first year of illness, if 70% of their salary is less than minimum wage, then employers must pay minimum wage instead. If the reason an employee is out sick is because of organ donation, pregnancy or giving birth, employers must pay 100% of their normal salary.Dutch law lays out a process for employers to report employee illness and work to help sick employees return to work, working with doctors and the employees to create a reasonable return-to-work plan. After two years, the employer may end the employment relationship if the employee remains unable to work. The employee may become eligible for a government invalidity benefit in this case.
Vacation Leave
In the Netherlands, full-time employees are entitled to a minimum of 20 paid vacation days off per year, based on a 5-day workweek. Those who work more or less days weekly are entitled to a prorated amount of vacation days each year, equal to four times the amount of days they work each week. Most employers offer above and beyond the minimum 20 days per year of annual paid leave, often offering 25 or more days of annual vacation as a company incentive.Employees are also entitled to statutory leave for short-term and long-term care leave to provide essential care for someone who is ill, as well as emergency leave and short absence leave for unforeseen personal circumstances, such as sudden injury, sickness, or death. Employers must grant reasonable requests for emergency leave and continue to pay employees’ salaries during leave. Some collective labour agreements or employment contracts may include terms for special leave and extraordinary leave for situations such as a family member’s marriage or funeral, moving to a new home, doctor’s appointments, taking an exam, or more.
Maternity / Paternity / Parental Leave
The Dutch government protects paid leave for parents of all varieties. Maternity Leave: Expectant mothers are entitled to receive a total of 16 weeks of time off: 6 weeks of pregnancy leave before their due date, and 10 weeks of maternity leave after giving birth. During maternity leave, the employer pays the employee 100% of their salary, which is then reimbursed by the government. Expectant mothers can begin their maternity leave between four and six weeks before the expected delivery date, with any unused time added to the leave taken after giving birth. If a baby is born before pregnancy leave is taken, the employee is entitled to 16 weeks from the day after the birth. In certain situations, employees may be entitled to extra maternity leave — for example, for multiple births, employees are entitled to 20 weeks instead of 16. Paternity / Partner Leave: Fathers or partners of someone giving birth are entitled to one week of paid partner/paternity leave. This week of paid leave can be taken at any time during the first four weeks after the child’s birth. Employers pay 100% of their employees’ salaries during this week, which is also reimbursed by the Dutch government. Partners are eligible to take up to five weeks of extended partner leave, to be taken no later than six months after a child’s birth, at a pay rate of 70% of their daily wage. Adoption / Foster Leave: Six weeks of paid leave are also available for employees who adopt a child or take in a foster child. This PTO does not have to be taken consecutively and may be taken by both parents in a couple that adopts or fosters a child.Parental Leave: In addition to the above, employees are entitled to parental leave of up to 26 times the number of hours they work per week, allowing parents to spent more time with their children as needed. Parents receive a government benefit for the first 9 weeks out of 26, an amount equal to 70% of their daily wage. Unless stated otherwise in a collective labour agreement, employers aren’t required to pay their employees’ salaries during parental leave. However, employers legally cannot refuse a request for parental leave.
Employment / Termination
Employment contracts in the Netherlands may be terminated by mutual agreement, employee resignation, expiration of a fixed-term contract, or dismissal via termination. Employers must have valid grounds for dismissal, which may include economic reasons, excessive sickness absence, poor performance, or non-performance.Plane employs the practice of Mutual Termination Agreements (MTAs) for involuntary offboarding, which enable employers to terminate employees while minimizing costs and the risk of litigation. This agreement covers unused leave, notice periods, severance, and negotiated terms, in exchange for the employee waiving their right to challenge the termination. It is important to note that Plane does not facilitate unilateral terminations or dismissals, due to risk of litigation that can expose employers to increased damages. Also, the grounds for these terminations may not be valid for an employer of record. We ask that you give us as much notice as possible and involve us right from the beginning (at least 30 days) of the process so we can better support and guide you through the process. Involuntary termination can take time to negotiate with employees to mutually agree and end on good terms. You can find additional information here on how to terminate an employee.Notice Periods: The notice period for terminating an employee in the Netherlands depends on their length of service, ranging from one to four months. Employers may agree on a longer or shorter notice period, but if the employee's notice period exceeds one month, the employer's notice period must be at least twice as long.For resignations, employees must provide four weeks' written notice. However, employees retain the right to terminate their contract immediately without notice in urgent situations such as threats or inability to perform the job.In the case of a fixed-term contract expiring, employers must inform employees of their intent to extend or let the contract expire at least one month in advance.During the probationary period, either party can terminate the employment contract without notice or grounds for termination.Severance Pay: Terminated employees or those with non-extended fixed-term contracts are entitled to a severance payment known as a transition payment. The payment amount depends on the length of employment and wages, calculated as 1/3 of one month's wages per year up to 10 years, plus 1/2 of one month's salary for each year above 10 years. The maximum payment is EUR 81,000 or one year's wages, whichever is greater.Severance payments are not owed when an employee resigns voluntarily, when there is serious misconduct or negligence on the part of the company, if the employee is a minor working less than 12 hours per week on average, if the employee has reached retirement age, or if termination occurs without notice due to extreme misconduct.
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*rates for: May 28, 2025
Once you have sorted out the details mentioned above, you can add the employee to the Plane platform. We provide a step-by-step workflow that shows what tasks need to be completed, as well as real-time updates and notifications. This way, you can stay on top of the hiring process at all times. With Plane, you can confidently hire, knowing that you have a powerful platform at your disposal to manage the entire process from start to finish. Here are the instructions for adding a new employee to the platform:
How to hire and onboard an employee
Plane offers a guided process for administrators and managers to hire and onboard their new employees...
Learn moreHiring an employee in a new country can be a complex process, but with the right guidance and resources, it can be a smooth and successful transition. At Plane, we're committed to helping you navigate the process of hiring an employee in the Netherlands. We'll keep you informed and up-to-date with the latest regulations and employment laws.Good luck with your new hire, and welcome to the Netherlands!
Frequently Asked Questions
Here are the answers to some common questions about hiring employees in the Netherlands with Plane:
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