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In the Netherlands, the minimum base salary for full-time employees over 21, not including the holiday allowances, is EUR 2.317,83 a month. Lower minimum base salaries apply to employees under the age of 21. The minimum wage is pro-rated for part-time employees. 
The minimum wage for Deel EOR employees over 21 includes the holiday allowance and amounts to EUR 2,503.25 monthly or EUR 30,039 annually.

The individual income tax ranges from 37.07% to 49.50%. Income tax is calculated according to progressive rates. 

The employer cost is generally estimated at approximately 34% of the employee salary, estimated on a salary of €66,956 gross, being the maximum salary for social security contributions. Anything below or under this salary will result in different percentages.

Please note that in The Netherlands, by local labor law, employees are entitled to a yearly holiday allowance (8% of salary) which is included in the base monthly salary and invoiced as an employer cost. Depending inter alia on the sector and preferences of offering a pension scheme, a private pension contribution might come on top of the below contributions, which amounts to another 15,4%.

• Social security employer costs
• Unemployment tax: 2.64% for indefinite contracts; 7.64% for definite contracts
  
• Disability and Sickness Insurance (WGA and ZW)*: 0.87%
• National Health Insurance (ZW)*: 6.57%
• Disability: 6.18%
• Child care social security: 0.50%
• Mandatory company doctor: EUR 8.00

• Pension contribution**: 15.4% of employee's pensionable salary + USD 14 admin fee

*Capped at a maximum monthly salary of EUR 5,969. 

**The amount will be prorated considering the employee's working hours. The maximum pensionable salary is capped at €137,800.00/year for 2024

Please note: the pension fund contribution will be prorated considering employee's working hours. The maximum pensionable salary and a franchise apply to the pension contribution calculations. These amounts may be subject to change annually and according to local regulations.

Holiday Allowance

The 8% holiday allowance is invoiced monthly as an employer cost, separately from the salary. However, this cost is included in the employee’s annual salary.

One off costs: 

• Contract Labour Service - EUR 15
• Worker Insurance - EUR 112

These costs are provided as estimates and are intended solely for general informational purposes. To fully comprehend all associated costs and fees related to the terms of any employment agreement for this country, please contact our Sales team for a quote.

Terminations must respect complex rules and the rules of an employee’s employment country. The off-boarding is always handled by the Employer with the primary stakeholders. It may include ad-hoc fees as well as required or recommended steps on specific termination cases.

An employer can only come towards a termination of an employment agreement on the basis of a valid reason in combination with the fact that there is no longer a suitable redeployment for the employee within the company. The following reasons are specified in the Dutch legislation:

• Redundancy due to economic circumstances
• Long-term disability (two years)
• Frequent absence due to illness or disability which results in unacceptable consequences for business operations
• Underperformance
• Misconduct
• Refusal to perform contractual duties due to conscientious or religious objection
• Disturbed relationship

Terminations in the Netherlands can be complex. As a general rule you cannot unilaterally terminate an employee in the Netherlands without the permission of the Dutch Courts or the Dutch Unemployment Agency (UWV). In most cases it is therefore preferred to seek mutual consent to a termination in which case the governmental permission is not required.

• Less than 5 years of service: 1 month’s notice
• Between 5 and 10 years of service: 2 months’ notice
• Between 10 and 15 years of service: 3 months’ notice
• 15 years or more of service: 4 months’ notice

When a termination is done by mutual consent, severance payments are often required in order to obtain the employee’s consent. Typically, the amounts for severance by mutual agreement can be equivalent to 2-6 months of salary or more depending on the strength of the case. In case of a termination by the court or the Dutch Unemployment Agency (UWV) the statutory severance needs to be paid which is roughly 1/3 gross monthly salary per each year worked.

To protect you from unforeseen financial risks arising from terminations, Deel applies a Severance Accrual to all employment agreements in this country.  Deel has extensive expertise in managing litigation risk globally and our Severance Accrual calculation is based on the prevailing common-law or statutory entitlements and local best practices. In the event your employee resigns or is not entitled to severance, all unused amounts will be returned to you.

The legal minimum number of vacation days for an employee in the Netherlands per year is four times the number of days worked per week.

This typically means 20 holidays in the case of a full-time employee working for five days a week. Most employers in the Netherlands grant their employees 25 days of paid holidays.

The Netherlands celebrates 11 national holidays.

National public holidays include:

1. New Year’s Day
2. Good Friday
3. Easter Sunday
4. Easter Monday
5. King’s Day
6. Liberation Day (once every 5 years)
7. Ascension Day
8. Whit Sunday
9. Whit Monday
10. Christmas Day
11. Boxing Day

Onboarding takes 2 business days after the client signs the SOW.

Salary Requirements

At Deel, the 8% holiday allowance is included in the annual salary. This means that the employee's annual salary on the Deel platform will include both the annual base salary and the 8% holiday allowance.

When determining the employee’s annual salary, ensure that you include both the base salary and the 8% holiday allowance.

The 8% holiday allowance is invoiced monthly as an employer cost, separately from the salary.