Netherlands

Hiring in the Netherlands can be done in four ways. You can pay an employee through your HQ in limited cases, where they remain linked to your home entity, though this rarely works long-term. You can engage contractors for independent work, set up a Dutch entity, or partner with an Employer of Record. An EOR is often used to employ staff compliantly without establishing a local company.

Setting up a local company in The Netherlands is relatively straightforward However, the difficult part comes after the initial setup when payroll needs to be calculated and run every month, taxes filed, benefits extended, change of rules and regulations followed.

Contractors work well when the relationship is project-based and the person serves multiple clients. If an individual gives their full and undivided attention to your company in the Netherlands, employment is the right structure under Dutch law, covering entitlements like paid holiday, sick leave, and social security. For project-based contractor engagements, Boundless’s Agent of Record (AOR) service handles classification, contracts, and payments compliantly in the Netherlands.

HR compliance in the Netherlands means your policies and procedures respect all applicable Dutch employment laws and regulations. When you hire in the Netherlands, this matters both to safeguard employee rights and to reduce employer risk. Compliance covers labour law, sick leave, annual leave (20 days), minimum wage (€14.71/hour), tax credits, and working hours. Following these is fundamental for running the business well.

Employing in the Netherlands involves statutory contributions on top of the gross salary you are offering. Key employer costs include contributions to AOW, ANW and WLZ, unemployment insurance, disability insurance, health insurance, and mandatory pension schemes. To view the exact percentages and amounts for the salary you plan to offer, use our handy calculator tool.

An Employer of Record is the legal employer of the individual in the Netherlands for government, tax, and employment purposes. It provides a locally compliant contract, runs payroll, files employment taxes, and manages statutory benefits such as 16 weeks of maternity leave and 20 days of paid leave. You remain responsible for sourcing workers, managing day-to-day work, and funding payroll each cycle.

Boundless as the Employer of Record Netherlands files all pertinent taxes and contributions to the employee insurance agency as they relate to the compliant employment of an individual in The Netherlands.

Boundless partners with employment lawyers and advisers in each country we operate in, including the Netherlands. They ensure employment contracts and onboarding documents comply with the local jurisdiction. We hold detailed discussions on specific norms such as payroll, social protection, data protection, notice periods, and work-from-home regulations. When a sensitive issue arises, our internal team engages the relevant firm promptly.

Any new employee that is locally employed through an Employer of Record and has a compliant employment contract gets full employment rights and employee benefits as specified in Dutch employment law and employment regulations. They get a locally compliant employment contract, statutory maternity leave, annual leave, illness benefits, any relevant tax credit, and many more. All Dutch-based employees receive healthcare through the public healthcare system.

In the Netherlands, both employers and employees have to pay taxes. For employers, these include National insurance premiums, employee insurance, and healthcare insurance and for employees, they include National insurance premium, Dutch health insurance, and income tax.

To get a clear overview of both employee and employer taxes, use our salary breakdown calculator.