Natherlands
Stay compliant and protect your business in Netherlands with Lerio's expert insights on HR and employment legislation.
Hiring in Natherlands at a glance
€ / EUR
40 hours / week
11 holidays / year
The most common payment frequency is monthly.
Payment frequency can also be weekly or bimonthly.
Dutch
17M
€13.21 / hour
1st Jan – 31st Dec
Employment Tax
- National insurance premium: 27.65%
- AOW (General Old-age Pensions Act): 17.9%*
- ANW (General Surviving Relatives Act): 0.1%
- WLZ (Act on long-term care): 9.65%
- Health insurance: 5.45%
- Income tax: 9.42% – 49.5%
- Progressive interest rate, see below
- National insurance premium: 12.86%
- Social insurance: 11.21%
- Childcare allowance (AKW): 0.5%
- Unemployment insurance (WW): 2.64% or 7.65%*
- Occupational disability insurance (WIA/WAO): 7.11%
- Return to work fund (WHK): 0.21% – 3.48%
- Sectoral Contributions: the amount depends on the unemployment risk level within the business or professional sector in which the company operates
- Healthcare insurance: 6.7%
Income Tax
| Taxable Income | Tax Rate (%) | ||
| Up to €35,409 | 9.42% | ||
| €35,410 - €69,308 | 37.07% | ||
| More than €69,399 | Up to 49.5% |
Employer of Record
in Natherlands
An Employer of Record fulfills the role of the formal employer for an individual, guaranteeing compliance with all regulations pertaining to employment in Australia. This encompasses responsibilities such as payroll management, benefits administration, and taxation obligations
Employer of
Record Process
- Company
- Full legal name of prospective employee
- Employee contact details
- Employee nationality and residency status
- Proposed start date
- Right to work status
- Job title
- Working hours
- Job description and deliverables
- Salary information
- Benefit information
- Intellectual property and confidentiality agreement
- Terms of termination (e.g. notice period)
- Probation period
- EMployee bank details
- All other company-specific requirements (e.g. non-compete, intellectual property clauses, etc.)
Finds their perfect hire and provides Lerio with all the information required to prepare an employment agreement. For Australia, that includes:
- Lerio
Prepares the employment agreement and shares with the prospective employee for signing. Requests all additional documents such as identity documents, proof of right to work in Australia, tax information, etc.
- Employee
Signs employment agreement and submits required documents.
Umbrella Process
- Employee
Now no longer a prospective employee but simply an official employee, who ensures to keep Lerio updated on any personal information changes.
- Lerio
Onboards employee to payroll and benefit programs to get started ensuring that salaries are paid every month and benefits are administered. Tax contributions and benefit fees are paid and payslips are provided to the employee.
Lerio provides an invoice and statement to the company for each month.
- Company
Receives monthly invoice, reviews and processes. Provides information on whether anything has changed in their relationship with the employee, the employee’s role or the company that will have an effect on the upcoming payroll run.
Employee Benefits
- Health insurance
- Pension
- 8% Vacation bonus
- Workers compensation insurance
- Unemployment insurance
- Life insurance
Non-mandatory
Employee Benefits
- Commuter allowance
- Extended paternity leave
- Private pension fund
- Remote work
- Additional sick leave
- Income protection
Employee Rights
- Whistleblower protection
- A safe and healthy work environment free from risk
- Protection from bullying, discrimination and sexual harassment
- Protection of personal information
- Access to information such as company policies and codes of conducts
- Payslips showing all deductions and income
- Flexible working upon returning from parental leave
- Fair and just dismissals
- Equal and equitable opportunities and treatment
Leave
20 days per year
70% for first two years paid by employer.
Occupational Health and Safety Service must be notified of illness.
16 weeks. 4- 6 before birth. 100% paid capped at €264.57 a day). Paid either directly from the Social Sec office or reimbursed to the employer. If multiple births 4 weeks is added.
After the first 6 weeks the remaining leave can be split and used within 30 weeks.
The amount of hours you work in a week is the amount of days you’re entitled to, e.g. for a 40 hour work week, you’re entitled to 40 days paid leave. In addition 5 weeks of unpaid leave in the first 6 months of their life which you can claim back to the Employment Insurance Agency (UWV) for up to 70% of their salary.
26 weeks of parental leave – 70% salary paid by SS and 70% of the maximum daily wage.
6 weeks of paid leave. Can be taken anytime between 4 weeks before the arrival and 26 weeks after.
Less than 5 years: one month
5-10 years: two months
10-15 years: three months
15 years: four months
Probation
Maximum 2 months but maximum 1 month for a fixed-term contract that’s less than 2 years.
What is a work permit in the Netherlands?
Work permits are official documents from a country’s government that qualifies an individual to legally work and live in the country. However, this is a broad term and many countries require more than one official document and may use different terms to refer to these documents – and the Netherlands is not quite of them. Essentially all terms are referencing documents that prove someone has been given the legal right to work and live in the country.
In the Netherlands, the “work permit” required to legally live and work there is referred to as a residence work Permit and you need to get an entry visa called a provisional residence permit to enter.
Who needs a work permit in the Netherlands?
The Netherlands requires everyone who is not a citizen or a permanent resident to go through a process of obtaining legal right to work, with certain exceptions:
EU member state citizens: All EU citizens have the right to work in another EU member state. They may however need to register their presence in the country (if staying for three months or less) or register your residence (staying for longer than three months). The Netherlands is an EU member state and therefore EU member state citizens don’t need to obtain any documents to prove their right to work and live in The Netherlands. They are required to register their residence in the Netherlands to receive a certificate of residence when staying for longer than three months.
Iceland, Liechtenstein and Norway: As members of the EEA (European Economic Area), Iceland, Liechtenstein and Norway citizens have the same rights as any EU member state citizen to work and live in the Netherlands. They are required to follow the same process as EU citizens as described above.
Switzerland: Though not a part of the EU or the EEA, the EU has an agreement with the Swiss government that allows a mutual freedom of movement. This affords Swiss nationals the same rights as any EU citizen to work and live in the Netherlands. They are required to follow the same process as EU citizens as described above.
Therefore, anybody who is not a citizen of an EU member state, Iceland, Liechtenstein, Norway or Switzerland needs to go through the process to obtain a legal right to work.
*UK citizens: Please see here to understand the rights of UK citizens who settled in Estonia prior to Brexit
How long does it take to get a work permit in the Netherlands?
Up to 3 months
Types of work visas in the Netherlands
Provisional residence permit (MVV)
The provisional residence permit is a short-stay visa that allows entry into the Netherlands for work.
Eligibility
This is applied for at the same time as your residence permit, which is under one of the following categories and would therefore be approved if you meet their requirements:
General work residence permit (GVVA)
The general work residence permit, also called a single permit is intended for individuals who have received an offer of employment from a Dutch company who couldn’t fill the position locally.
Eligibility
- An offer of employment from a Duth company registered in the Commercial Register
- Minimum salary requirements are met
- Salary is market-related
- Employer couldn’t find a hire locally for the role
Highly-skilled migrant residence permit
The highly-skilled migrant residence permit is available to individuals who have demonstrable experience and qualifications in specialised fields.
Eligibility
- Offer of employment from a eligible employer recognised by the IND
- Salary offered meets the minimum requirements
- The salary is market-related
EU Blue Card
The EU blue card is a combined work and residency permit available to highly skilled individuals. It allows holders access to live and work in 25 out of the 27 EU member states (Denmark and Ireland not included).
Eligibility
- Bachelors or higher degree, some states accept 5 years of relevant experience without a degree
- Must be a salaried employee, not self-employed
- Annual salary must be at least 1.5 times the average national income of the state applying for
- Offer of employment
- Health insurance
Country-specific requirements and application processes can be seen here.
Application process in the Netherlands
Apply for a Provisional residence permit (MVV) and residence permit
This is done by the employer. Note that citizens from countries on this list may not need an MVV
- Submit applications for both the provisional residence permit and relevant residence permit online or via mail
- Pay the fees
- Wait for an answer, both the employer and employee can follow the application updates here
- Once approved, both will be notified and the IND will forward the information to the local consultat or embassy
Collect provisional residence permit (MVV)
- Make an appointment at the local consulate or embassy to collect
- During the appointment
- Submit biometric data
- Collect provisional residence permit
- Travel to and work in Netherlands is now allowed
Collect residence permit
- Once in the Netherlands make an appointment to collect residence permit
- Provide all supporting documents
- Receive residence permit
What documents are required to apply for a work permit in the Netherlands?
Provisional residency permit and work residence permits
Documents submitted together
- Valid passport with 3 blank pages
- Two recent passport photos
- Proof of funds
- Proof of accommodation
- Employment agreement or job offer
- Returning flight information
- Company registration documents
- Proof of qualifications
- Proof of experience aligned to the role
- Job description
- Proof of attempts to recruit for the role locally
Residence permit collection
- Passport
- Appointment code received when making appointment
- Provisional residence permit (MVV)
Contact Us
If you have questions - feel free to ask them. We are happy to help our clients.