Employer of Record (EOR) Netherlands: Hire, Manage, and Pay Talent Seamlessly

Hiring in the Netherlands comes with strict rules and ongoing changes to expat policies. Tarmack, as your Dutch employer of record, makes it simple:

1. Global Hiring and Onboarding

Dutch payroll is detailed and tightly monitored — we keep everything accurate and compliant.

2. Payroll Management

Dutch regulations are stricter about worker protection and classification. As EOR Netherlands, Tarmack makes sure to comply with every rule.

3. Compliance Assurance

Dutch employees expect strong statutory and supplementary benefits — we manage everything end-to-end.

4. Benefits Administration

Comprehensive EOR Netherlands Solutions for Seamless Global Hiring

EOR Services in the Netherlands

1. Employee Services

2. Contractor Services

3. Corporate & Regulatory Services

Employer of Record Netherlands Pricing Structure

Hiring in the Netherlands becomes instant with a Dutch Employer of Record. You skip setting up a Dutch private limited company (BV) and start onboarding through our local structure right away. Contracts, compliance, and paperwork are handled from day one.

1. Accelerated Market Entry

With Tarmack as your Netherlands employer of record, you avoid incorporation costs, notary fees, and ongoing BV maintenance. You only pay for the people you hire and the services you choose.

2. Cost-Effective Hiring

Grow or adjust your team without getting stuck in Dutch labour rules. Tarmack, as a PEO Netherlands, supports permanent hires, fixed-term roles, and freelancers while keeping everything compliant and smooth.

3. Workforce Agility & Flexibility

We manage Dutch labour requirements—contracts, renewals, minimum wage, leave rules, documentation—so you stay protected and audit-ready.

4. Hassle-Free Compliance & Administration

Tarmack, as a Dutch employer of record, runs monthly payroll in euros, handles all tax and social-security deductions, and processes mandatory benefits like the 8% holiday allowance, backed by clear HR and payroll reporting.

5. Payroll & Benefits, Simplified

Tarmack, as a Dutch employer of record, runs monthly payroll in euros, handles all tax and social-security deductions, and processes mandatory benefits like the 8% holiday allowance, backed by clear HR and payroll reporting.

Benefits of Employer of Record Netherlands

How the Dutch Law Decides Whether It's Employment

When It Does Not Count as Employment

Government bodies may use employment contracts under Article 7:615 BW, or they may appoint someone as a civil servant. Civil-service appointments are unilateral and do not constitute employment contracts.

Special Rules for Public Employers In the Netherlands

What Must Be Included in a Dutch Employment Contract

Types of Employment Contracts in the Netherlands

Where a CAO Applies

Types of CAO and Flexibility

Effect of CAO on Employment Contracts

Collectieve Arbeidsovereenkomst (CAO)

Employment Contracts

Step-by-Step Onboarding Checklist

Hiring Foreign Employees

Onboarding Process

Work Visa:

A short-stay Netherlands Schengen visa is required for business visits. It is valid for up to 90 days. Some of the required documents are -

Business Visa:

Visa

A permit will not be issued if any of these mandatory conditions apply:

Reasons a Work Permit May Be Denied In the Netherlands

Cases Where Dutch Permits Are Not Needed

Permit Duration and Residence Registration

Dutch Work Permits – Key Guidance for Employers

Below is how EOS is calculated when employment ends due to termination, contract maturity, or force majeure:

Employer Responsibilities

Minimum Wages

The payroll cycle in the Netherlands is monthly. Employees are typically paid on the last day of the month.

Payroll Cycle

Employees in the Netherlands are paid 8% of their annual wage as an annual bonus. This 'holiday pay' or 'vakantiegeld' is offered in May or December. Employees who have worked for less than a year are offered 8% of the pay for the number of months worked.

Annual Bonus

Health Benefits

Working Hours and Overtime

Sick Leave

Parental Leave

Annual Leaves

Some dates may vary based on official notifications and traditional calendars.

Public Holidays (for the Calendar year 2024)

Public Holidays (for the Calendar year 2025)

Leaves

Employers in the Netherlands pay the bulk of employee insurance contributions. Below is the table:

1. Employer Social Security Contributions

As per Dutch law, the employers are responsible for deducting social security contributions from employee salaries and remitting them to the Dutch authorities. For 2025, the contribution base for national insurance schemes is capped at €38,441. Employers have to ensure these deductions are calculated each pay period to remain compliant with Dutch law.

2. Employee Social Security Contributions

Social Security Contributions

This is the income from work and home ownership. This includes salary, benefits, and income related to the home you live in. For most employees, Box 1 is where their entire tax burden sits.

Box 1 (Work & Home Ownership)

This applies if you own 5% or more of shares in a company. It covers dividends or profits you take out of that business.

Box 2 (Substantial Business Interest)

Box 3 (Savings & Investments)

Personal Income Tax Rates

1. Government Requirements

2. Pension Requirements

A. Employment Contracts: Every employee should receive a contract that fully aligns with Dutch employment law and any CAO rules. The contract must also reflect statutory pay, leave, and benefit requirements.

B. Minimum Wage: Employers must pay at least the statutory minimum wage (updated twice a year). As of July 2025, the hourly minimum wage is €14.40 for workers aged 21 and older. Along with base pay, there's a mandatory 8% holiday allowance that must be included in the employment terms.

E. Extraterritorial Costs and the 30% Facility: When employees are hired from abroad, they often face extra living expenses such as temporary housing, residence permits, travel home, or language courses. Dutch employers can compensate for these costs either by reimbursing the real expenses or by using the 30% facility.

F. Immigration: EEA and Swiss nationals can work in the Netherlands without immigration formalities. For non-EEA and non-Swiss employees, you must determine whether they need a residence permit, work permit (TWV), or a combined single permit (GVVA) before starting employment.

G. Social Security: Employees are normally insured for social security in the country where they physically perform their work. This applies even for short-term assignments.

I. Healthcare: Everyone living in the Netherlands must take Dutch health insurance, except in two clear cases:

3. Employment Obligations

Work-related cost scheme (WRCS): Under the WRCS, employers can give tax-free allowances within a fixed “free space.” For 2025, the free space is:

Reporting Obligations: Employers must calculate the WRCS final levy once a year. If the tax-free space is exceeded, the 80% final levy must be reported and paid in the first wage tax return of the following year.

4. Payroll Requirements

5. Banking Requirements Related to Payroll

Netherlands Payroll Compliance Overview

1. Technology​‍​‌‍​‍‌​‍​‌‍​‍‌ & IT: Dutch firms are rapidly automating and digitally transforming their operations, and the tech & IT jobs are the ones that form the core of that radical change. In-demand skills include:

Top Skills on Demand

The probation period in the Netherlands can be for up to 2 months. Probation periods are usually decided upon in collective agreements.

Probation

Termination

The mandatory notice period in the Netherlands is one month. It differs according to the length of service -

The severance pay or the transition payment is decided upon in the employee agreements.

Severance Pay

Independent Contractors (ZZP/Freelancers): Independent contractors are self-employed professionals who provide services on assignment, without being bound by an employment contract.

Employees vs Independent Contractors

An Employer of Record (EOR), also known as a Global PEO, allows you to hire employees and contractors in the Netherlands without opening a local entity.

Global PEO Netherlands

Tarmack, as your PEO Netherlands, offers transparent, competitive pricing with no hidden fees. Our cost-effective plans help you manage your Dutch workforce smoothly and stay within budget. Reach out to us today to get started.

Start Hiring Today

An EOR is a local partner that becomes the legal employer for your staff in the Netherlands while you manage their day-to-day work. It lets you hire, onboard, and pay talent compliantly without opening a Dutch entity.

What is an Employer of Record (EOR) in the Netherlands?

The prices for Tarmack EOR Netherlands services are clear and easy to plan for. It’s $199 per employee each month and $39 per contractor each month. If you only need payroll support, it starts at $15 per employee per cycle. For further breakdowns, <a href='https://www.tarmack.com/get-started'>contact us</a>.

What is the cost of an Employer of Record in the Netherlands?

Frequently Asked Questions

The Netherlands (also known as Holland) is a country in northwest Europe that attracts top talent for its employee-friendly norms. Proximity to other business destinations across Europe makes it a great place for business expansion. The various employment norms in the Netherlands can be complex for new employers. EOR services help companies with employee payrolls, benefits, taxes and more, ensuring legal compliance.

Employment Norms in Netherlands

Expand into the Netherlands with confidence — Tarmack, as your Dutch Employer of Record, handles hiring, payroll, and compliance end-to-end. Connect with us to get started.

Employer of Record (EOR) Netherlands: Hire, Manage, and Pay Talent Seamlessly

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