Good to know
Local Currency : Euro (€ / EUR).
Minimum Salary: 1756.20€ gross per month for employees over 21 years old.
The minimum wage was last increased on July 1, 2022. In the Netherlands, there is a statutory minimum wage (wettelijk minimumloon) for employees aged 21 and over and a statutory minimum wage for employees under 21 (wettelijke minimum jeugdloon).
Salary Calculation: gross to net
Legal Working Hours: the maximum average is:
- 48 hours over a 16-week period or,
- 55 hours in up to 4 consecutive weeks.
Most CAOs (collective labour agreements) specify a 40-hour maximum working week.
Paid Leave: The statutory number of leave hours per year is at least 4 times the number of weekly working hours.
For example, if an employee works 40 hours per week, he/she is entitled to 4 x 40 = 160 hours of paid leave. If the employee works part-time, the number of hours of leave must be calculated proportionately.
Ready to benefit from Dutch HR & Payroll Experts?
About the Netherlands
The Netherlands is a Western European country that shares borders with Belgium, Germany and France (border with the Caribbean Island of St. Martin).
The Netherlands is known for being a flat country with landscapes that are particularly popular for hiking and cycling.
The standard of living in the Netherlands is one of the highest in Europe. The country attracts a lot of investments and Amsterdam, the capital, became in January 2021 new number one hub of finance in Europe. The Dutch economy is dynamic and driven by powerful multinationals such as Royal Dutch Shell, Unilever and Philips.
Fun fact: In Amsterdam, there are more bicycles than inhabitants. Not surprising for a country that puts the environment and climate management at the heart of its priorities.
Are you looking to settle in the Netherlands? Do you need help with payroll or human resources management? Our Dutch payroll and HR experts will provide you with a fast and accurate service in full compliance with local legislation.
The Dutch Social Security System (for employees)
The social security system in the Netherlands consists of two types of social insurance:
- The national insurance scheme (volksverzekeringen), which covers all residents in the Netherlands.
- The insurance scheme for employees (werknemersverzekeringen) which covers employees for their professional activity.
Administrative Organisation
The Dutch social security system is under the responsibility of two ministries:
- Ministry of Social Affairs and Employment (Ministerie van Sociale Zaken en Werkgelegenheid) ;
- Ministry of Health, Welfare and Sport (Ministerie van Volksgezondheid, Welzijn en Sport).
The implementation of the various laws* concerning social protection protection has been entrusted to various organisations.
SVB (Social Insurance Bank)
- National Old Age Pensions Act (AOW)
- ANW Survivor Benefit Scheme (ANW)
- General Child Benefit Act (AKW)
Dutch Provider of Employee Insurance Schemes (UWV)
- Sickness Benefits Acts (ZW)
- Pregnancy and Maternity Benefits (WAZO)
- Work and Income according to Labour Capacity Act (WIA)
- Disablement Benefits Act – old plan (WAO)
- Unemployment Insurance Act (WW)
- Young Disabled Persons Act (Wajong)
- Supplements Act (TW)
Private Insurance Companies
- Long-Term Care Act (WIz)
- Health Insurance Act (ZVW)
Municipal Social Services
- Participation Act (Participatiewet).
* Laws based on residency only and/or applicable by virtue of an employed activity
Social Security Contributions in the Netherlands (for employees)
National Insurance Scheme
National insurance (volksverzekeringen) applies to all persons who are covered by the Dutch social security system, whether they are resident or employed.
Rates applicable on January 1, 2021 (1) |
|||||
| National Old Age Pensions Act (AOW) | 17.90% (2) | ||||
| ANW Survivor Benefit Scheme (ANW) | 0.10% | ||||
| Long-Term Care Act (WIz) | 9.65% | ||||
(1) Calculation basis capped at 35 129€ per year
(2) The AOW pension contribution is not payable by people who have reached the statutory retirement age.
Insurance Scheme for Employees
Contributions to the employee insurance scheme (werknemersverzekeringen) are payable by the employer. They are deducted from the gross salary, up to a fixed annual limit of € 58,311.
Rates applicable on January 1, 2021 | |||||
| Health Insurance Act (ZVW) | 7% | ||||
Work and Income according to Labour Capacity Act (WIA) Basic contribution Differentiated contribution (Whk) Funding for childcare benefits | 7.03% Variable (1) 0.50% | ||||
| Unemployment Insurance Act (WW) – Awf general fund | 2.70% (2) | ||||
(1) Contribution aimed at financing part of the cash benefits in case of incapacity for work (to help people return to work). It is mainly dependent on the sector of activity of the company.
(2) Rate applicable to permanent contracts, other types of contracts are subject to a higher contribution (7.70%).
Health Care Premiums
Health care insurance requires a nominal premium to be paid by all insured persons 18 years of age and older. This premium is collected by the health insurance companies and its amount may vary depending on the insurer. On average, it stands at €1,473 per year.
Please note: The Dutch social security system does not provide specific insurance against work-related accidents and illnesses: these risks are covered by health insurance (benefits in kind and in cash), by benefits provided under the Work and Income according to Labour Capacity Act (WIA) and by survivors’ insurance (ANW).
Collection of contributions
The social security contributions are paid by the employer to the Tax and Customs Administration (Belastingdienst).
Employers who do not have an establishment in the Netherlands must register with the tax authorities using a special form.
Payroll Tax
Businesses that hire employees in the Netherlands must deduct payroll tax directly from the employees’ wages.
This payroll tax consists of:
- Wage Tax (wage withholding tax) and national insurance contributions
- Social Security Contributions
- An income-dependent employer’s health care insurance contribution
The amount of wage tax/national insurance contributions to withhold is based on the bracket rate for the wage tax/national insurance contributions.
- In 2022 there are 2 bands: a first band with a salary to € 69,398 and a second bad with a salary of € 69,399 or more.
From a salary of € 35,473, only the wage tax has to be deducted and not the national insurance contributions.
Employees who have reached the state pension age do not pay the state pension contribution, but do pay the surviving dependants and long-term care contributions.
To help you with the calculation, the government of the Netherlands has set a calculation simulator you can find here: Dutch Income Tax Calculator.
Our HR & Payroll Experts are Ready to Help
Payroll and HR are different in each country and to each business. Trust one of our local experts to ensure your company’s compliance in the Netherlands.
Our Payroll and HR services in the Netherlands
- Implementation and testing of the software
- An understanding of your individual business payroll processes
- Online payslips & payments
- A dedicated payroll expert
- Data entry & processing
- Payslip distribution
- Personnel & document production
- Legislation compliance
- Highly secure
HR & Payroll in the Netherlands
HR & Payroll in the Netherlands
Good to know
Local Currency : Euro (€ / EUR).
Minimum Salary: 1756.20€ gross per month for employees over 21 years old.
The minimum wage was last increased on July 1, 2022. In the Netherlands, there is a statutory minimum wage (wettelijk minimumloon) for employees aged 21 and over and a statutory minimum wage for employees under 21 (wettelijke minimum jeugdloon).
Salary Calculation: gross to net Legal Working Hours: the maximum average is:- 48 hours over a 16-week period or,
- 55 hours in up to 4 consecutive weeks.
Most CAOs (collective labour agreements) specify a 40-hour maximum working week.
Paid Leave: The statutory number of leave hours per year is at least 4 times the number of weekly working hours.For example, if an employee works 40 hours per week, he/she is entitled to 4 x 40 = 160 hours of paid leave. If the employee works part-time, the number of hours of leave must be calculated proportionately.
Ready to Benefit from Dutch HR & Payroll Experts?
About the Netherlands
The Netherlands is a Western European country that shares borders with Belgium, Germany and France (border with the Caribbean Island of St. Martin).
The Netherlands is known for being a flat country with landscapes that are particularly popular for hiking and cycling.
The standard of living in the Netherlands is one of the highest in Europe. The country attracts a lot of investments and Amsterdam, the capital, became in January 2021 new number one hub of finance in Europe. The Dutch economy is dynamic and driven by powerful multinationals such as Royal Dutch Shell, Unilever and Philips.
Fun fact: In Amsterdam, there are more bicycles than inhabitants. Not surprising for a country that puts the environment and climate management at the heart of its priorities.
Are you looking to settle in the Netherlands? Do you need help with payroll or human resources management? Our Dutch payroll and HR experts will provide you with a fast and accurate service in full compliance with local legislation.
The Dutch Social Security System (for employees)
The social security system in the Netherlands consists of two types of social insurance:
- The national insurance scheme (volksverzekeringen), which covers all residents in the Netherlands.
- The insurance scheme for employees (werknemersverzekeringen) which covers employees for their professional activity.
Administrative Organisation
The Dutch social security system is under the responsibility of two ministries:
- Ministry of Social Affairs and Employment (Ministerie van Sociale Zaken en Werkgelegenheid) ;
- Ministry of Health, Welfare and Sport (Ministerie van Volksgezondheid, Welzijn en Sport).
The implementation of the various laws* concerning social protection protection has been entrusted to various organisations.
SVB (Social Insurance Bank)
- National Old Age Pensions Act (AOW)
- ANW Survivor Benefit Scheme (ANW)
- General Child Benefit Act (AKW)
Dutch Provider of Employee Insurance Schemes (UWV)
- Sickness Benefits Acts (ZW)
- Pregnancy and Maternity Benefits (WAZO)
- Work and Income according to Labour Capacity Act (WIA)
- Disablement Benefits Act – old plan (WAO)
- Unemployment Insurance Act (WW)
- Young Disabled Persons Act (Wajong)
- Supplements Act (TW)
Private Insurance Companies
- Long-Term Care Act (WIz)
- Health Insurance Act (ZVW)
Municipal Social Services
- Participation Act (Participatiewet)
* Laws based on residency only and/or applicable by virtue of an employed activity
Social Security Contributions in the Netherlands (for employees)
National Insurance Scheme
National insurance (volksverzekeringen) applies to all persons who are covered by the Dutch social security system, whether they are resident or employed.
Rates applicable on January 1, 2021 (1) |
|||||
| National Old Age Pensions Act (AOW) | 17.90% (2) | ||||
| ANW Survivor Benefit Scheme (ANW) | 0.10% | ||||
| Long-Term Care Act (WIz) | 9.65% | ||||
(1) Calculation basis capped at 35 129€ per year
(2) The AOW pension contribution is not payable by people who have reached the statutory retirement age.
Insurance Scheme for Employees
Contributions to the employee insurance scheme (werknemersverzekeringen) are payable by the employer. They are deducted from the gross salary, up to a fixed annual limit of € 58,311.
Rates applicable on January 1, 2021 | |||||
| Health Insurance Act (ZVW) | 7% | ||||
Work and Income according to Labour Capacity Act (WIA) Basic contribution Differentiated contribution (Whk) Funding for childcare benefits | 7.03% Variable (1) 0.50% | ||||
| Unemployment Insurance Act (WW) – Awf general fund | 2.70% (2) | ||||
(1) Contribution aimed at financing part of the cash benefits in case of incapacity for work (to help people return to work). It is mainly dependent on the sector of activity of the company.
(2) Rate applicable to permanent contracts, other types of contracts are subject to a higher contribution (7.70%).
Health Care Premiums
Health care insurance requires a nominal premium to be paid by all insured persons 18 years of age and older. This premium is collected by the health insurance companies and its amount may vary depending on the insurer. On average, it stands at €1,473 per year.
Please note: The Dutch social security system does not provide specific insurance against work-related accidents and illnesses: these risks are covered by health insurance (benefits in kind and in cash), by benefits provided under the Work and Income according to Labour Capacity Act (WIA) and by survivors’ insurance (ANW).
Collection of contributions
The social security contributions are paid by the employer to the Tax and Customs Administration (Belastingdienst).
Employers who do not have an establishment in the Netherlands must register with the tax authorities using a special form.
Payroll Tax
Businesses that hire employees in the Netherlands must deduct payroll tax directly from the employees’ wages.
This payroll tax consists of:
- Wage Tax (wage withholding tax) and national insurance contributions
- Social Security Contributions
- An income-dependent employer’s health care insurance contribution
The amount of wage tax/national insurance contributions to withhold is based on the bracket rate for the wage tax/national insurance contributions.
- In 2022 there are 2 bands: a first band with a salary to € 69,398 and a second bad with a salary of € 69,399 or more.
From a salary of € 35,473, only the wage tax has to be deducted and not the national insurance contributions.
Employees who have reached the state pension age do not pay the state pension contribution, but do pay the surviving dependants and long-term care contributions.
To help you with the calculation, the government of the Netherlands has set a calculation simulator you can find here: Dutch Income Tax Calculator.
Our HR & Payroll Experts are Ready to Help
Payroll and HR are different in each country and to each business. Trust one of our local experts to ensure your company’s compliance in the Netherlands.
Our Payroll and HR services in the Netherlands
- Implementation and testing of the software
- An understanding of your individual business payroll processes
- Online payslips & payments
- A dedicated payroll expert
- Data entry & processing
- Payslip distribution
- Personnel & document production
- Legislation compliance
- Highly secure
Good to know
Local Currency : Euro (€ / EUR).
Minimum Salary: 1756.20€ gross per month for employees over 21 years old.
The minimum wage was last increased on July 1, 2022. In the Netherlands, there is a statutory minimum wage (wettelijk minimumloon) for employees aged 21 and over and a statutory minimum wage for employees under 21 (wettelijke minimum jeugdloon).
Salary Calculation: gross to net
Legal Working Hours: the maximum average is:
- 48 hours over a 16-week period or,
- 55 hours in up to 4 consecutive weeks.
Most CAOs (collective labour agreements) specify a 40-hour maximum working week.
Paid Leave: The statutory number of leave hours per year is at least 4 times the number of weekly working hours.
For example, if an employee works 40 hours per week, he/she is entitled to 4 x 40 = 160 hours of paid leave. If the employee works part-time, the number of hours of leave must be calculated proportionately.
Ready to benefit from Dutch HR & Payroll Experts?
About the Netherlands
The Netherlands is a Western European country that shares borders with Belgium, Germany and France (border with the Caribbean Island of St. Martin).
The Netherlands is known for being a flat country with landscapes that are particularly popular for hiking and cycling.
The standard of living in the Netherlands is one of the highest in Europe. The country attracts a lot of investments and Amsterdam, the capital, became in January 2021 new number one hub of finance in Europe. The Dutch economy is dynamic and driven by powerful multinationals such as Royal Dutch Shell, Unilever and Philips.
Fun fact: In Amsterdam, there are more bicycles than inhabitants. Not surprising for a country that puts the environment and climate management at the heart of its priorities.
Are you looking to settle in the Netherlands? Do you need help with payroll or human resources management? Our Dutch payroll and HR experts will provide you with a fast and accurate service in full compliance with local legislation.
The Dutch Social Security System (for employees)
The social security system in the Netherlands consists of two types of social insurance:
- The national insurance scheme (volksverzekeringen), which covers all residents in the Netherlands.
- The insurance scheme for employees (werknemersverzekeringen) which covers employees for their professional activity.
Administrative Organisation
The Dutch social security system is under the responsibility of two ministries:
- Ministry of Social Affairs and Employment (Ministerie van Sociale Zaken en Werkgelegenheid) ;
- Ministry of Health, Welfare and Sport (Ministerie van Volksgezondheid, Welzijn en Sport).
The implementation of the various laws* concerning social protection protection has been entrusted to various organisations.
SVB (Social Insurance Bank)
- National Old Age Pensions Act (AOW)
- ANW Survivor Benefit Scheme (ANW)
- General Child Benefit Act (AKW)
Dutch Provider of Employee Insurance Schemes (UWV)
- Sickness Benefits Acts (ZW)
- Pregnancy and Maternity Benefits (WAZO)
- Work and Income according to Labour Capacity Act (WIA)
- Disablement Benefits Act – old plan (WAO)
- Unemployment Insurance Act (WW)
- Young Disabled Persons Act (Wajong)
- Supplements Act (TW)
Private Insurance Companies
- Long-Term Care Act (WIz)
- Health Insurance Act (ZVW)
Municipal Social Services
- Participation Act (Participatiewet)
* Laws based on residency only and/or applicable by virtue of an employed activity
Social Security Contributions in the Netherlands (for employees)
National Insurance Scheme
National insurance (volksverzekeringen) applies to all persons who are covered by the Dutch social security system, whether they are resident or employed.
Rates applicable on January 1, 2021 (1) |
|||||
| National Old Age Pensions Act (AOW) | 17.90% (2) | ||||
| ANW Survivor Benefit Scheme (ANW) | 0.10% | ||||
| Long-Term Care Act (WIz) | 9.65% | ||||
(1) Calculation basis capped at 35 129€ per year
(2) The AOW pension contribution is not payable by people who have reached the statutory retirement age.
Insurance Scheme for Employees
Contributions to the employee insurance scheme (werknemersverzekeringen) are payable by the employer. They are deducted from the gross salary, up to a fixed annual limit of € 58,311.
Rates applicable on January 1, 2021 | |||||
| Health Insurance Act (ZVW) | 7% | ||||
Work and Income according to Labour Capacity Act (WIA) Basic contribution Differentiated contribution (Whk) Funding for childcare benefits |
7.03% Variable (1)
0.50% | ||||
| Unemployment Insurance Act (WW) – Awf general fund | 2.70% (2) | ||||
(1) Contribution aimed at financing part of the cash benefits in case of incapacity for work (to help people return to work). It is mainly dependent on the sector of activity of the company.
(2) Rate applicable to permanent contracts, other types of contracts are subject to a higher contribution (7.70%).
Health Care Premiums
Health care insurance requires a nominal premium to be paid by all insured persons 18 years of age and older. This premium is collected by the health insurance companies and its amount may vary depending on the insurer. On average, it stands at €1,473 per year.
Please note: The Dutch social security system does not provide specific insurance against work-related accidents and illnesses: these risks are covered by health insurance (benefits in kind and in cash), by benefits provided under the Work and Income according to Labour Capacity Act (WIA) and by survivors’ insurance (ANW).
Collection of contributions
The social security contributions are paid by the employer to the Tax and Customs Administration (Belastingdienst).
Employers who do not have an establishment in the Netherlands must register with the tax authorities using a special form.
Payroll Tax
Businesses that hire employees in the Netherlands must deduct payroll tax directly from the employees’ wages.
This payroll tax consists of:
- Wage Tax (wage withholding tax) and national insurance contributions
- Social Security Contributions
- An income-dependent employer’s health care insurance contribution
The amount of wage tax/national insurance contributions to withhold is based on the bracket rate for the wage tax/national insurance contributions.
- In 2022 there are 2 bands: a first band with a salary to € 69,398 and a second bad with a salary of € 69,399 or more.
From a salary of € 35,473, only the wage tax has to be deducted and not the national insurance contributions.
Employees who have reached the state pension age do not pay the state pension contribution, but do pay the surviving dependants and long-term care contributions.
To help you with the calculation, the government of the Netherlands has set a calculation simulator you can find here: Dutch Income Tax Calculator.
Our HR & Payroll Experts are Ready to Help
Payroll and HR are different in each country and to each business. Trust one of our local experts to ensure your company’s compliance in the Netherlands.
Our Payroll and HR services in the Netherlands
- Implementation and testing of the software
- An understanding of your individual business payroll processes
- Online payslips & payments
- A dedicated payroll expert
- Data entry & processing
- Payslip distribution
- Personnel & document production
- Legislation compliance
- Highly secure
Sources:
Websites of the Government of the Netherlands
https://www.government.nl/topics/minimum-wage/amount-of-the-minimum-wage
https://business.gov.nl/running-your-business/staff/health-and-safety-at-work/working-hours-act/
https://business.gov.nl/regulation/holiday-entitlement/