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Hire and manage employees in Netherlands

As your Employer of Record (EOR) in Netherlands, we’d help you expand by hiring employees and running their payroll without establishing a local branch office or subsidiary.
Last updated:
July 16, 2025
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Quick facts

The Netherlands has a highly developed economy with strengths in trade, technology, and finance. As a member of the European Union, the country offers a favorable business environment, making it attractive for international companies and skilled professionals. Dutch labor laws provide comprehensive protections, including regulated working hours, social security, and strong employment rights.

Employment Contracts

In the Netherlands, both fixed-term and indefinite contracts are allowed. An employee can be offered up to three fixed-term contracts or a total duration of 36 months before the contract automatically converts to an indefinite term.

Probation Period

For fixed-term contracts, the probation period is 1 month. For indefinite contracts, the probation can extend up to 2 months.

Working Hours

The Working Hours Act allows a maximum of 12 hours per shift and 60 hours per week, though standard hours are 40 hours weekly. Work hours may increase to 48 hours per week as long as it is set as the regular schedule.

Vacation Days

Employees are entitled to at least 20 vacation days per year, though many employers offer 25 days. Vacation days accrue from January 1 to December 31, and unused statutory days expire 6 months after the accrual year ends. A vacation allowance of 8% of gross annual salary is typically paid in May.

Sick Leave

Employers must pay 70% of an employee's salary during the first two years of illness, provided the payment is no less than the minimum wage. Both the employer and employee must work towards reintegration, with mandatory support from a medical officer for long-term sickness.

Wages and Salary Payment

Employees are paid in 12 monthly installments, with a vacation allowance of 8% of gross annual salary added in May. In 2024, the minimum wage was €2134 per month for employees aged 21 and over.

Public Holidays

There are 10 national public holidays in the Netherlands, including:

  • January 1: New Year’s Day
  • April 27: King’s Day
  • May 5: Liberation Day (every five years)
  • December 25-26: Christmas

Employer Taxes

Employers contribute to social security at the following rates:

  • Unemployment insurance: 2.94% for indefinite contracts, 7.94% for temporary contracts
  • Disability insurance: 8.55%
  • Childcare allowance: 5%Medical insurance contributions are 6.7% on income up to an annual cap of €57,232.

Employee Taxes

Employee tax rates are progressive:

  • 37.07% on income up to €69,397
  • 49.5% on income above €69,397
  • Medical insurance contributions cost approximately €1,509 annually for the employee.

Notice Period

The notice period for employers varies by service length:

  • Less than 5 years: 1 month
  • 5-10 years: 2 months
  • 10-15 years: 3 months
  • 15 years or more: 4 months

Employees are required to provide 1 month’s notice.

Termination and Severance Pay

Termination is possible via:

  1. Mutual agreement and a settlement.
  2. Dismissal permit from the Social Security office (UWV).
  3. Court dissolution of the contract.

Employees dismissed after the probation period are entitled to a transition allowance of 1/3 of a month’s salary for each year of service, capped at €84,000 or one year’s salary if higher.

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Frequently
Asked
Questions

What is International EOR and PEO?

International EOR (Employer of Record) and PEO (Professional Employer Organization) are services that enable businesses to compliantly hire, manage, and pay employees in foreign countries without the need for establishing a legal entity. EOR acts as the legal employer while PEO co-employs workers, handling administrative tasks such as payroll, taxes, and benefits.

Does Acvian handle time record submissions?

Acvian does not handle time record submissions directly. It is the client’s responsibility to track and submit employee work hours. However, Acvian can offer guidance and best practices to ensure efficient time tracking and compliance with local labor laws.

How can employees view their payroll details?

Employees can view their payroll details through the monthly payslips they receive and also via our Acvian platform. These payslips contain information on earnings, deductions, taxes, and net pay, giving employees a clear overview of their monthly payroll. Please note that in some countries, employers are restricted from viewing payslips due to data protection regulations, and only employees can share their payslips. For more details on these regulations, please contact our specialists.

How Acvian handles payroll disputes?

Acvian addresses payroll disputes promptly, working closely with both the client and the employee to investigate and resolve any issues.

Does Acvian require advanced monthly payments of salaries and service?

Yes, Acvian requires advanced monthly payments for salaries and service to ensure timely and accurate payroll processing.

Can Acvian provide consultations regarding a labor and tax legislation?

Yes, Acvian can provide consultations regarding labor and tax legislation. Our team of experts is well-versed in local regulations and can offer guidance to help your business maintain compliance, reduce risk, and navigate the complexities of international employment and taxation laws.

Which benefits does Acvian provide?

Acvian provides a diverse range of benefits, including but not limited to:

  • Health insurance
  • Car leasing
  • Gym allowance
  • Per diem compensation
  • Maternity leave

We can customize and offer many kinds of benefits requested by the client, ensuring that your employees receive the support and perks that align with your company culture and local regulations.

Can Acvian provide private health insurance?

Acvian can provide private health insurance options as part of its comprehensive employee benefits package.

What would the monthly/yearly costs for the employee be?

The monthly/yearly costs for an ‘average’ package vary depending on the specific plan and location. See our estimated price packages here. Acvian’s team can provide detailed cost breakdowns based on your requirements.

Can Acvian help with entity set up?

While Acvian doesn’t directly provide entity set-up services, we can introduce you to local lawyers who specialize in this area to assist you with your needs. See also, when it's better to set the entity or use the EOR.

Offboarding: how it is handled?

Offboarding is managed by Acvian in a structured and compliant manner. We coordinate with your business to ensure all necessary documentation, exit interviews, and final payments are completed. Acvian also ensures adherence to local labor laws and regulations, including providing any required notice periods and managing the termination process.

When does business need it?

Businesses typically need EOR and PEO services when they:

  • Expand into new international markets.
  • Hire remote employees in foreign countries.
  • Seek to streamline global workforce management.
  • Aim to ensure compliance with local labor laws and regulations.
  • Want to reduce the time and cost of establishing legal entities abroad.

Is Acvian compliant with GDPR?

Yes, Acvian is fully compliant with GDPR regulations. We collect and process personal data in accordance with the law, ensuring that data is used only for general, allowed purposes such as marketing and other legitimate business activities.

Where can Acvian supply EOR services?

Acvian can supply EOR services in over 180 countries, encompassing almost all European nations, the United States, and Canada, providing extensive coverage to support your business’s global expansion and workforce management needs. See our coverage here.

How does payroll work under EOR?

Under EOR, Acvian manages the payroll process by:

  • Acting as the legal employer of your foreign workforce.
  • Handling salary calculations, deductions, and disbursements.
  • Ensuring compliance with local tax and labor laws.
  • Managing payroll taxes, social contributions, and benefits.
  • Providing timely and accurate payroll processing for your employees.

Explore the details here.

Can you provide support for expatriate EOR workers?

Yes, Acvian provides comprehensive support for expatriate EOR workers, including:

  • Visa and work permit assistance.
  • Relocation and housing support.
  • Local registration and compliance.
  • Payroll and tax management.
  • Coordination of benefits and insurance coverage.

Explore in details here.

What are the details of expats support?

Expats support from Acvian encompasses a range of services designed to facilitate a smooth transition for employees working abroad. Key aspects include:

  • Assistance with visa and work permit applications, renewals, and compliance.
  • Support for relocation, including housing, schooling, and local registration.
  • Guidance on local tax regulations and filings.
  • Coordination of locally compliant benefits and insurance coverage.
  • Ongoing support for any changes or issues that may arise during the expatriate assignment.

What happens after onboarding?

After onboarding, Acvian maintains an ongoing relationship with your business and employees, ensuring smooth payroll processing, managing tax and regulatory compliance, handling benefits administration, and providing support for any changes or issues that may arise in the employment lifecycle. This allows you to focus on your core business operations while Acvian manages your international workforce.

How many days will it take for our personnel to be onboarded?

The onboarding process typically takes between 2 to 4 weeks, depending on the country and complexity of the employee’s situation. However, Acvian strives to expedite this process, ensuring a smooth and efficient transition for your personnel. See our story of the urgent employment project.

Does Acvian provide in-country support for employee inquiries or assistance requests?

Yes, Acvian provides in-country or regional support for employee inquiries and assistance requests. We have dedicated managers in the countries where we support your employees, ensuring prompt and knowledgeable assistance tailored to local regulations and practices.

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