Please fill in your information below and download our total cost estimate for an employee with the specified gross salary level in .
- Employee Cost Calculator
- Netherlands
Employee cost calculator in Netherlands
Looking to hire in Netherlands? Our Employee Cost Calculator gives you a clear view of expenses including taxes and employer contributions.
Trusted by industry leaders around the world
Get started with Tarmack-hiring and paying global talent is just a few clicks away.
Request a demoFrequently Asked Questions (FAQs)
What are the mandatory employer costs and statutory benefits in the Netherlands?
Dutch employers must provide statutory benefits including holiday allowance (vakantiegeld) of at least 8% of annual gross salary, social security contributions (for AOW, ANW, Wlz, WW, WIA, and ZW), and a minimum number of paid vacation days (four times the weekly working hours). Employer pension contributions are mandatory only if a sectoral pension fund (bedrijfstakpensioenfonds) applies, and employers must also pay for employee insurance schemes and, in most cases, a portion of health insurance premiums via the Zorgverzekeringswet (Zvw) contribution.
How are payroll taxes and employer social contributions calculated for employees in the Netherlands?
Payroll taxes in the Netherlands include wage tax (loonbelasting), national insurance contributions (volksverzekeringen), and employee insurance contributions (werknemersverzekeringen), which are withheld and remitted to the Belastingdienst (Dutch Tax Authority). Employers are also responsible for the Zvw employer’s healthcare contribution, calculated as a percentage of the employee’s gross income, with rates updated annually by the government.
What are common hidden or indirect employment costs for Dutch employers?
Common hidden costs include onboarding and training expenses, administrative fees for payroll compliance, and potentially a 13th month salary or end-of-year bonus if customary in the sector or under a collective labour agreement (CAO). Additional costs may arise from mandatory severance pay (transitievergoeding) upon termination, as well as providing equipment and workplace arrangements for remote or flexible workers.
What legal requirements affect the total cost of employment in the Netherlands?
The Wet minimumloon en minimumvakantiebijslag (Minimum Wage Act) sets statutory minimum wage levels, adjusted biannually, while collective bargaining agreements (CAO) may stipulate higher wages and extra benefits. Dutch law also mandates strict rules on working hours, paid leave, sick pay (up to 104 weeks at 70% of salary), and prescribes specific notice periods and severance obligations in case of termination.
Which country-specific employment practices and contract types impact employer costs in the Netherlands?
Typical Dutch employment contracts include fixed-term (tijdelijk) and open-ended (onbepaalde tijd) agreements, with probationary periods up to two months allowed by law. It is customary to offer supplementary benefits such as travel allowances, flexible working options, and pension schemes, while the sector and applicable CAO may further influence contract terms and total employment costs.
