Employer of Record in the Netherlands (Hiring Guide)
An Employer of Record (EOR) can employ someone in the Netherlands while your team directs their day-to-day work. If you select the employee and the provider needs your consent to place them elsewhere, the arrangement can fall under Dutch payrolling rules. That affects the offer itself. The employee is entitled to at least the terms of comparable staff, and even a first hire may need a sector benchmark. Dutch payrolling rules
Employment in the Netherlands at a glance
For employees working in the European Netherlands. Working-time figures cover the ordinary adult rules.
| Label | Value | Detail | Source |
|---|---|---|---|
| Payroll currency and frequency | EUR, usually monthly | Agree the pay period in writing. For time-based wages, pay normally falls due after each wage period of one week to one month, with limited written extensions. | Salary payment rules, Civil Code 7:623 |
| Standard working week | Set by contract or CAO | The ordinary legal ceiling is 48 hours a week on average over 16 weeks. A collective labour agreement (CAO) can set normal hours for the role. | Working Hours Act, Collective agreements |
| Minimum paid annual leave | 4 × weekly working hours | Annual entitlement is measured in hours. A 40-hour week gives 160 paid hours for a full year. An agreement can provide more. | Annual leave rules |
| Public holidays | Time off varies | The government lists official dates. The CAO or employment contract determines which days the employee has off. | Dutch holiday calendar |
| Statutory minimum wage | €14.99 gross per hour | For workers aged 21 and over from 1 July 2026. Youth rates are lower. The adult floor rises to €15.29 on 1 January 2027. | 2026 minimum wage, 2027 minimum wage |
| Holiday allowance | Usually at least 8% | Applies to qualifying gross wages and is commonly paid in May or June. The CAO or contract governs the payment arrangement. | Holiday allowance |
| EOR hiring route | Check Dutch payrolling rules | Verify the supplier's Waadi registration. Where the setup qualifies as payrolling, comparable employment terms apply. | Supplier registration, Payroll-worker rights |
EOR and hiring options
Dutch law classifies the arrangement by how it works. In a typical payrolling setup, the client sources the employee and supervises their work. The provider employs the worker, and can assign them to another client only with the original client's consent. If the provider itself recruits and matches the worker to an assignment, the setup may fall under different agency-work rules. Check who sourced the candidate, who directs the work and who can reassign the worker before agreeing on the route. Civil Code 7:692, Dutch payrolling rules
What changes when this is your first Dutch hire?
For the same client-selected, client-directed hire under Dutch payrolling, the comparison starts with who already does equivalent work. Share the applicable employment terms with the payroll company before the assignment starts. Waadi, Article 8a, Payroll-worker rights
| Your situation | Where the offer terms come from | What to price before making the offer |
|---|---|---|
| You employ people in the same or equivalent roles | The terms for those employees | Give the EOR the relevant pay scale, leave, sick-pay terms and any extra month's salary. Identify the pension arrangement separately. |
| You have no staff in an equivalent role, including a first hire | The terms for equivalent work in your sector | Establish the sector and comparable role, then check the applicable terms and pension eligibility before signing off on gross pay or the start date. |
Give the provider those terms before it quotes. Two proposals for the same gross salary can price different packages if one includes an extra month's pay or a pension contribution that the other has yet to account for.
The payroll company signs the employment contract, pays wages and makes payroll filings. The client manages the work, supplies the comparable terms and checks that the supplier is registered with the Dutch Chamber of Commerce (KVK) for labour supply under Waadi. The client can still face liability for unpaid wages or certain taxes. KVK registration check, Hirer liability
For an assignment that will continue into 2027 or beyond, ask the supplier how it will meet the new Wtta authorisation rules. The transition year begins on 1 January 2027. Suppliers using it must notify the Dutch Labour Supply Authority (NAU) by 31 December 2026 and apply from 1 May to 30 June 2027. Hirers can check the new register from 1 July 2027. The admission requirement is enforceable from 1 January 2028. NAU timetable, Commencement decree
Direct employment is another route. You take on the contract, payroll registration and employment obligations, even if you outsource payroll processing. A foreign company can register as an employer with the Dutch Tax Administration where appropriate. Assess any Dutch taxable presence separately under the applicable treaty. Foreign employer registration, Dutch tax presence
Employment costs
Using 2026 rates for a full year, a €60,000 gross base salary gives a payroll subtotal of about €78,155 to €79,037 before the employer-specific return-to-work premium (Whk), pension, any additional employment terms and the EOR fee. That is about €6,513 to €6,586 a month for budgeting. The example assumes a full-time Amsterdam operations specialist with existing work rights and Dutch social insurance on a 12-month payrolling contract with guaranteed hours. The base excludes holiday allowance. The range reflects the formal employer's disability contribution tier. 2026 payroll rates, Holiday allowance
| Budget item | Annual amount or status | Basis |
|---|---|---|
| Gross base salary | €60,000 | €5,000 a month in this illustration |
| Holiday allowance | €4,800 | 8% of base pay |
| Published employer payroll additions | €13,355 to €14,237 | On €64,800 of qualifying pay. AWf unemployment at 7.74% for this contract, Aof disability at 6.27% or 7.63%, Wko childcare at 0.50% and Zvw health at 6.10%. |
| Whk return-to-work contribution | Provider rate required | Ask for the formal employer's applicable rate or how it handles self-insured exposure. |
| Pension and additional employment terms | Scope and price required | Check the comparator terms, pensionable pay and employer share. Price any required extra salary or fund contributions. |
| EOR administration | Quote required | Ask for the service fee separately. Itemize any optional benefits and one-off costs such as equipment or a permit application. |
The model uses the 2026 €79,409 annual wage cap for employee insurance and the employer health levy. The example is below that cap. Aof and Whk depend on the formal employer's payroll profile, so the size of your own Dutch team does not tell you which rate applies. A qualifying written, open-ended contract with guaranteed hours generally has a lower 2026 AWf rate of 2.74%. The 12-month contract in the example uses 7.74%. Payroll Tax Handbook
Check whether a quoted annual salary already includes holiday allowance. With the example's terms, €400 accrues for each full month of base pay. If the allowance is paid once a year, the accumulated amount is due in one pay run. The EOR invoice has its own schedule, so ask how it bills the allowance and associated payroll charges. For employment that continues into 2027, have the provider refresh the rates and pension cost for that year. For other salary and contract scenarios, see the Netherlands hiring cost guide.
Payroll and payments
The legal employer pays the agreed gross wages less employee withholding, including wage tax and applicable national insurance contributions. It pays its own employee-insurance contributions and the employer health levy on top of gross pay. It provides a payslip at the first payment and again when relevant pay details change. Payroll tax, Payslips
Employee payday follows the written pay agreement. The Dutch tax authority assigns the payroll return cycle, typically a calendar month or four weeks, and publishes the filing and payment deadlines. For the first run, agree when hours, variable pay and leave changes need to reach the provider so they make the right payslip. Paying wages, Payroll filing dates
Contracts and working conditions
Put the work location, role, hours, salary, holiday allowance, contract duration and any applicable CAO in the offer documents. A CAO can set pay scales, overtime, leave and other terms. Check the actual sector and function before using a company-wide template, including whether a sector agreement has been made generally binding. Employment contracts, Collective agreements
Any probation period must be in writing. The ordinary maximum is one month for fixed terms longer than six months and shorter than two years, and two months for contracts of at least two years or of indefinite duration. Contracts of six months or less cannot have probation. Keep track of fixed-term renewals and prior related employment. Successive contracts can convert to indefinite employment under the Dutch chain rule, subject to exceptions. Probation, Employment contracts
For home or hybrid work, set the approved location and agree who provides equipment and supports a safe setup. Dutch health and safety duties extend to working from home. If the employee will work regularly from another country, check which social security rules apply before approving the move. Remote work rules
Working hours, leave and holidays
Under the ordinary rules for adults, the maximum is 12 hours in a shift and 60 in an individual week, with limits of 55 hours a week on average over four weeks and 48 over 16 weeks. Overtime counts toward those limits. Check the CAO or contract for overtime pay or time off and any applicable sector rules. Working Hours Act, Collective agreements
Record annual leave in hours so part-time and changing schedules are handled correctly. Holiday allowance is a separate payment. The CAO or contract sets which official holidays are days off. For example, check whether 5 May (Liberation Day) is a day off under the employee's terms before scheduling coverage. Annual leave, Dutch holiday calendar
When an employee is sick, the employer generally continues at least 70% of qualifying wages for up to 104 weeks while the contract remains in force, subject to the minimum-wage floor in the first year. The employer also has reintegration duties, and the applicable terms may require a top-up. Pregnancy and maternity leave totals at least 16 weeks. Eligible parents can also take up to nine weeks of paid parental leave in the child's first year, with a UWV benefit based on 70% of daily wages up to the statutory cap. Sick pay, Family leave
Benefits and pension
Workers covered by the Dutch health system generally take out their own basic health insurance. The employer's Zvw levy is a separate payroll cost. For occupational pension, check for an applicable industry fund or agreement. In Dutch payrolling, the adequate-pension obligation applies when comparable employees at the client, or the relevant sector comparator, have a pension entitlement. Basic health insurance, Pension rules, Waadi, Article 8a
The payroll company can use the relevant equivalent plan or offer its own qualifying scheme. An own scheme must provide accrual from the first working day and survivor coverage. Its minimum collective employer contribution is 15.2% of the combined pensionable base in 2026, rising to 15.8% on 1 January 2027. Ask for the actual employer contribution in euros and how the plan determines pensionable pay. Allowances such as commuting or home-office support can be added if they are optional under the applicable terms. Adequate pension rules, 2026 pension rate, 2027 pension rate
Onboarding and work authorization
- Client and provider, before the offer. Confirm the employment route, comparator terms and pension. Give the provider the role, work location, hours, gross base, intended start date and any agreement or internal terms that apply.
- Legal employer, before work starts. Verify identity and permission to work. Dutch, other EU/EEA and Swiss nationals generally need no work permit. For other nationals, check the residence document and any permit requirements for this employer and role. Standard work permits include a TWV and the combined residence and work permit (GVVA). The highly skilled migrant route generally requires an IND-recognised sponsor and market-rate pay that meets the applicable threshold excluding holiday allowance. Verify the exact employer in the IND register if sponsorship is needed, and set the work start after the required authorization is in place. Work permits, Highly skilled migrant route, IND salary criteria, Sponsor register
- Employee and legal employer, before work starts. Collect the signed payroll details, including the employee's citizen service number (BSN), and confirm the bank details and first payday. A delayed BSN can affect first-pay withholding, with limited exceptions. Payroll Tax Handbook
Termination and final pay
Ending the client assignment leaves a separate employment decision for the payroll company. Dutch payroll workers have the same dismissal protection as comparable directly employed workers. Before setting an end date, give the provider the grounds and relevant records. Without the employee's agreement, dismissal usually goes through UWV for economic reasons or long-term incapacity and the subdistrict court for personal grounds such as performance. Payrolling and dismissal, Dismissal procedures
The statutory employer notice period for an indefinite contract generally runs from one to four months depending on service. A fixed term normally expires on its agreed date. For a fixed term of at least six months with a calendar end date, notify the employee in writing at least one month before expiry whether it will be renewed. Ending a fixed term early by giving notice generally requires an early-termination clause. A valid probation period has no notice period. Notice periods, Fixed-term notification, Probation
At exit, reconcile outstanding wages and unused leave, and pay accrued holiday allowance with the last salary. If the employer dismisses the employee or chooses not to renew, a statutory transition payment is generally due, with service counted from day one. Final leave payout, Holiday allowance at exit, Transition payment
The usual transition payment is one-third of a qualifying month's pay per year of service, prorated for partial years and subject to a cap. If the employer lets the example's 12-month contract expire without renewal after a full year of service, that would be about €1,800 gross using €5,000 monthly base plus €400 holiday allowance and no other qualifying pay. Budget it separately from recurring payroll. Transition pay calculation
Hiring with Borderless AI
Borderless AI offers EOR support for hiring in the Netherlands, with employment contracts, payroll and benefits administration. For a quote, bring the work location, role, gross base salary, contract length, proposed start date and work-authorization status. Ask which entity would employ the worker, which employment terms and pension it would apply, and how it will itemize the payroll charges and service fee. Borderless EOR services
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