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Global Expansion Guide

Netherlands

Manage and pay your employees easily with BIPO in the Netherlands and 170+ other markets. Build your international teams today with our global Employer of Record service!

employment guide_currency

Currency

Euro (EUR)

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Language

Dutch

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Capital

Amsterdam

Employer of Record the Netherlands

Employment Contract

Statutory Contributions

Minimum Wage

Public Holidays

Working Hours

Probationary Period

Leave

Termination and Compensation

BIPO as your Employer of Record

Benefits of BIPO EOR Service in the Netherlands

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  • Global Hiring Guide
  • Netherlands

Employer of Record the Netherlands

Embark on your business expansion in the Netherlands with BIPO’s Employer of Record (EOR) services. Designed to assist you in navigating the intricacies of local employment laws and regulations, we can help ensure a smooth transition for your business and workforce.

As an Employer of Record (EOR), we act as your legal employment entity, streamlining the process of business expansion. Allowing businesses to focus on their core business operations while the EOR manages all aspects of compliance, payroll, HR, and employee benefits when venturing into the Dutch market. An EOR provider addresses the common challenges associated with local employment laws, payroll regulations, and work permit requirements.

Employment Contract

Types of employment contracts:

  • Fixed-term contracts and open-ended (indefinite-term) contracts.
  • If the contract does not explicitly specify a term, it shall be deemed an indefinite-term contract.
  • A fixed-term or temporary contract must be converted into an indefinite-term contract if its renewals, in total, exceed 36 months.
  • From 1 January 2020, fixed-term contracts may only be renewed a maximum of three times.

Content

Employment contracts should preferably be concluded in writing on the employees’ first working day, and must include at least the following particulars:

  • Name and address of the employer and employee
  • Place of work
  • Job title or position
  • Working hours (per day or per week)
  • Provisions regarding overtime and shift arrangements
  • Leave entitlements
  • Salary and method of payment
  • Contract duration (if fixed-term)
  • Provisions regarding termination of the contract, among others

Statutory Contributions

Category Details Employer’s Contribution Employee’s Contribution
General Old Age Pension (AOW) Pension security – 17.90%
General Surviving Dependants Act (ANW) Survivor’s benefits – 0.10%
Long-Term Care Act (WLZ) Medical and care-related coverage – 9.65%
General Unemployment Fund (AWF) Unemployment insurance 2.74% / 7.74% (depending on type of employment contract) –
Health Insurance Act (ZVW) Health Insurance 5.26% / 6.51% (depending on individual situation and income) –
Work and Income (Capacity for Work) Act (WIA) / Invalidity Insurance Fund (AOF) Occupational injury and disability insurance 6.28% / 7.64% (depending on enterprise size) –
Return-to-Work Fund (WHK) Disability coverage 0.51% – 5.91% (depending on industry sector, enterprise size and degree of employee disability) –
Child Benefit Act (AKW) Children allowance 0.50% –
Total Contribution Approx. 15.29% – 28.30% Approx. 27.65%

For 2025, the maximum contribution base will increase to 75,864 EUR.

Minimum Wage

As of 1st July 2025, the statutory minimum hourly wage, differentiated by age, shall be as follows:

Age (years) Minimum Wage (EUR/hr)
21 and above 14.40
20 11.52
19 8.64
18 7.20
17 5.69
16 4.97
15 4.32

Public Holidays

In 2025, the Netherlands observes 11 public holidays. Actual dates are subject to the official announcement by the Dutch government.

Holiday Name Date
New Year’s Day 1 January 2025
Good Friday 18 April 2025
Easter Sunday 20 April 2025
Easter Monday 21 April 2025
King’s Day 26 April 2025
Liberation Day 5 May 2025
Ascension Day 29 May 2025
Whit Sunday 8 June 2025
Whit Monday 9 June 2025
Christmas Day 25 December 2025
Christmas Holiday 26 December 2025

Working Hours

Normal Working Hours

In the Netherlands, standard weekly working hours are typically 36, 38, or 40 hours.

  • Maximum daily working hours: 12 hours
  • Maximum weekly working hours: 60 hours

  • Average working hours restrictions:

    • Over a consecutive 4-week period, the average weekly working time may not exceed 55 hours.
    • Over a consecutive 16-week period, the average weekly working time may not exceed 48 hours.
  • On-call (zero-hour) contracts are permitted.

Rest Time

  • Employees working 5.5 hours are entitled to a 30-minute break, which may be split into two 15-minute paid breaks.
  • Employees working 10 hours are entitled to a 45-minute break, which may be split into three 15-minute paid breaks.
  • Lunch breaks are usually 1 hour and unpaid.
  • Minimum rest between working days: 11 hours.

Night Work

  • Night work is defined as work performed between 00:00 and 06:00.
  • Maximum night shift: 10 hours; 16-week average may not exceed 40 hours.
  • Minimum rest between consecutive night shifts: 14 hours.
  • Employers must schedule the next night shift at least 46 hours later if an employee has worked three or more consecutive night shifts.

Overtime

  • Overtime is any work beyond standard working hours.
  • Overtime, together with regular working hours, may not exceed 12 hours per day or 60 hours per week.
  • Overtime pay may be compensated by time off instead of payment.
  • No statutory overtime rates, and pay or compensation is determined by employment contracts or collective labor agreements.

Probationary Period

  • Employment contracts with a term of less than six months: no probationary period permitted.
  • Employment contracts with a term of six months up to two years: probationary period may not exceed one month.
  • Employment contracts exceeding two years and open-ended (indefinite term) contracts: probationary period may not exceed two months.

Leave

Dutch statutory leave entitlements include the following:

Type Applicability Duration
Paid Annual Leave All employees At least four times the weekly working hours; May be higher under collective agreements (typically 20–30 days).
Maternity and Pregnancy Leave Female employees Full pay; Minimum 16 weeks (including 6 weeks before expected childbirth).
Sick Leave All employees No statutory limit; Paid sick leave up to 2 years (104 weeks). During the first year, the employer must pay at least 70% of the employee’s standard wage, not below statutory minimum wage. In the second year, the minimum wage floor does not apply.
Paternity Leave Male employees 1 week fully paid + 5 weeks unpaid; Such leave must be taken within 6 months after the child’s birth.
Parental Leave Employees with children under 8 years old Up to 26 times weekly working hours; First 9 weeks paid at 70% of salary; Collective agreements may provide paid leave.
Adoption Parental Leave Employees adopting a child under 8 years old 6 weeks per parent; Fully paid.
Nursing / Breastfeeding Leave Female employees with children Up to 1/4 of working hours per day, fully paid; Applicable within 9 months of childbirth.
Family Care Leave All employees Up to 10 days, paid 70% of salary; Intended for the care of a sick child.
Short-Term Care Leave All employees Up to twice weekly working hours; 70% of salary; To care for ill family or close social relations.
Long-Term Care Leave All employees Up to six times of weekly working hours, unpaid; Social security benefits may apply; For care of terminally ill or seriously ill children, partners, or parents.
Emergency Leave All employees Paid leave as needed; For first day of illness or imminent death of relatives.
Political Leave All employees Unpaid leave as needed.

Termination and Compensation

Termination Notice

The statutory notice periods are as follows:

Length of Service (years) Notice Period (months)
< 5 1
5 – 10 2
10 – 14 3
≥ 15 4
  • During the probationary period, neither party is required to give notice.
  • Shortening of the notice period is permitted only by collective agreement.
  • The notice periods apply equally to both individual dismissals and collective redundancies.
  • Parties may agree on exceptions whereby the employee’s notice period is longer than the statutory period, provided it does not exceed six months.

Compensation

  • Employees are entitled to one-third of their gross monthly salary for each full year of service with the employer.
  • The statutory maximum (cap) for the transition payment is EUR 98,000 gross in 2025. Where the employee’s annual gross salary exceeds EUR 98,000, the maximum transition payment shall equal one full year’s gross salary.
  • Employees with less than one year of service are entitled to pro-rated transition compensation from the first day of employment.

BIPO as your Employer of Record

BIPO’s total HR solutions include our award-winning HR Management System, Global Payroll Outsourcing, Employer of Record service, and Athena BI.

As your EOR partner, our services are designed to provide a comprehensive, hassle-free experience:

  • Initial Consultation: The journey typically begins with an in-depth discussion to understand your specific business needs, ensuring our EOR services perfectly align with your objectives.
  • Payroll Management: We offer a streamlined payroll system that ensures timely and accurate salary disbursement, complete with statutory deductions and contributions in full compliance with Dutch regulations.
  • Contributions and Taxes: Our expertise in managing local social security requirements ensures your business complies with the Netherlands’ financial obligations.
  • Compliance with Working Hours: We guarantee that your employment practices adhere to Dutch working hours standards, safeguarding your business against potential legal issues.
  • Leave and Paid Time Off Management: Implement and manage leave policies that comply with Dutch laws, ensuring a fair and transparent leave management system for your employees.
  • Regulatory Compliance: Stay ahead of local labour laws and regulations with our up-to-date compliance services, minimising legal risks for your business.
  • Other services: Work visa, permit applications, termination procedures.

Services may vary across countries.

Benefits of BIPO Employer of Record Service in the Netherlands

Unlock your growth potential with BIPO’s Employer of Record service in the Netherlands. Our EOR service empowers businesses with seamless scalability while ensuring regulatory compliance.

From smooth onboarding to risk mitigation, BIPO handles the administrative HR tasks, enabling companies to concentrate on core business functions and accelerating growth. Our local expertise and global reach ensure efficient operations, enhancing flexibility and reducing operational complexities.

Stay up to date with the latest employment regulations.

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Frequently Asked Questions (FAQ)

An Employer of Record (EOR) is a partner company that acts as the official employer for your employees.

An EOR company handles all the HR aspects and processes, including the legal complexities associated with regulatory and tax compliance.

As your EOR, BIPO supports your organisation by providing a comprehensive range of HR, payroll and advisory services to ensure your business stays compliant. These include end-to-end on/offboarding services for your employees (e.g.: payroll processing, HR and benefits administration, labour contracts, visa applications, payroll/tax compliance, and more).

By engaging BIPO as your EOR, your business benefits from:

  • Compliance in the global markets where you operate
  • Reduced costs and risk mitigation
  • Overall workforce productivity, effectiveness, and efficiencies

A global EOR benefits organisations regardless of size or industry. It is especially useful for organisations that want to:

  • Scale their global business and be fully operational in foreign markets quickly
  • Reduce financial and HR complexities while expanding internationally
  • Minimise time spent trying to understand local labour laws and foreign tax systems
  • Stay compliant across global markets while reducing HR and administrative workflows
  • Benefit from a centralised and intuitive cloud HR platform to manage international teams

A global EOR enables businesses to fast-track their market entry into international market, and reduce the complexities of setting up multiple foreign entities.

When you partner with BIPO, we take on the the day-to-day administrative tasks, while you maintain full control of the business and delegate HR workflows and hiring needs.

Our vast network of business partners across 170+ markets globally supports your business expansion plans, with in-country HR experts providing localised support. Going global has never been easier!

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