How to Hire Employees in France using an Employer of Record?
Learn all you need about hiring employees in the Netherlands, laws, payroll and employer of records.
Quick Facts About Netherlands
About Netherlands
The Netherlands' strategic location as Western Europe's gateway, combined with its advanced logistics infrastructure and business-friendly regulatory environment, makes it an ideal hub for international expansion. As one of Europe's most digitally connected economies, the Netherlands offers companies access to a highly educated, multilingual workforce and a sophisticated market that serves as a launchpad to the broader EU region. While the country is renowned for its straightforward business procedures and transparent regulatory framework, establishing operations requires careful attention to its unique employment legislation, flexible work arrangements, and comprehensive social security system. Companies must navigate both the advantages of Dutch efficiency and the requirements of its modern labor laws when setting up operations, from understanding the distinct rules around flexible contracts to ensuring compliance with the country's balanced approach to worker protections and employer rights.
Why use an EOR in Netherlands?
Setting up a legal entity in Netherlands can be complex and time-consuming, typically taking between 21 to 28 days and requiring a minimum capital of 0.01 EUR. Using an Employer of Record (EOR) allows you to start hiring immediately while ensuring full compliance with local labor laws and regulations.
Local Entity Setup
21-28 days
0.01 EUR
500 EUR
Using an EOR
1-2 days
$0
$299-599
Per employee, includes all services
Employment Basics
Key requirements and regulations for hiring employees in Netherlands.
Contract Requirements
Written employment contracts are mandatory in Netherlands.
The employment contract must include the following provisions:
- Job description
- Working hours
- Salary
- Leave entitlement
- Notice period
- Applicable collective agreement (if any)
Working Hours
Standard working hours in Netherlands are 9 hours per day and 45 hours per week.
Overtime is limited to 2 hours, and must be compensated at 1.5x the regular hourly rate.
Probation Period
A probation period is mandatory in Netherlands and can last up to 2 months.
No notice period is required during the probation period.
Termination Requirements
Notice Period: 120 days
Severance Pay:
Employers must provide valid grounds for termination.
Required documentation for termination:
- Written notice
- Stated reason for termination
Compensation
Mandatory compensation requirements in Netherlands.
Minimum Wage
The minimum wage is 14.06 EUR per hourly.
Special Pay Requirements
Required Allowances:
- Remote work allowance: EUR 2.40 per day (tax-free)
Required Bonuses:
Tax Structure
Tax obligations and reporting requirements for employers in Netherlands.
income tax
| Income Range | Tax Rate |
|---|---|
| 0 - 38,441 | 35.82% |
| 38,441 - 76,817 | 37.48% |
| 76,817 - Above | 49.5% |
Employee Benefits
Netherlands provides a comprehensive benefits package for employees that includes both mandatory and optional benefits. These benefits are designed to ensure employee welfare and comply with local regulations.
Mandatory Benefits
Non-Mandatory Benefits
Leave Policies
Statutory leave entitlements for employees in Netherlands.
Annual Leave
Employees are entitled to 20 days of annual leave per year, paid at 100% of their regular salary.
Sick Leave
Employees are entitled to 728 days of sick leave per year, paid at 100% of their regular salary.
Maternity Leave
Employees are entitled to 112 days of maternity leave per year, paid at 100% of their regular salary.
Paternity Leave
Employees are entitled to 42 days of paternity leave per year, paid at 100% of their regular salary.
Public Holidays
Netherlands observes 11 public holidays throughout the year. Most holidays are paid at 100% of regular salary.
| Date | Holiday | Status |
|---|---|---|
| July 8 | Whit SundayEerste Pinksterdag | Mandatory |
| January 1 | New Year's Day | Mandatory |
| April 18 | Good Friday | Mandatory |
| April 20 | Easter Sunday | Mandatory |
| April 21 | Easter Monday | Mandatory |
| April 26 | Kings DayKoningsdag | Mandatory |
| May 5 | Liberation DayBevrijdingsdag | Mandatory |
| May 29 | Ascension DayHemelvaartsdag | Mandatory |
| June 9 | Whit MondayTweede Pinksterdag | Mandatory |
| December 25 | Christmas Day | Mandatory |
| December 26 | Boxing Day | Mandatory |
Choosing an Employer of Record in Netherlands
Key considerations and recommendations for selecting an EOR provider in Netherlands.
What to Look for in an EOR Provider
When selecting an Employer of Record in Netherlands, consider these key factors:
- Local expertise and presence in Netherlands
- Compliance track record and regulatory knowledge
- Transparent pricing and fee structure
- Quality of customer support and response times
- Technology platform and integration capabilities
- Employee experience and onboarding process
Common Pitfalls to Avoid
Be aware of these potential issues when choosing an EOR provider:
- Hidden fees and unclear pricing structures
- Limited local market knowledge or presence
- Poor communication and support responsiveness
- Outdated technology and manual processes
- Lack of compliance guarantees
Recommended EOR Providers
To help you make an informed decision, you can explore our complete list of Employer of Record (EOR) providers with detailed reviews, pricing information, and feature comparisons.