Business · Employer of record
Employer of record in the Netherlands
Employing someone in the Netherlands through an employer of record: employer premiums, the hourly minimum wage, leave, the 8% holiday allowance, probation, notice, the transition payment and two years' sick pay.
Checked on 16 October 2026. The headline rules for a standard employee, from official sources where they opened and law firm, PwC or specialist publisher guides where they didn't; each line names its source. Sectors, collective agreements and contracts can change them. This is general information, not legal advice.
Know this first
- Dismissal isn't at will: the employer needs a valid reason.
- Qualifying staff moving to the Netherlands can be paid up to 30% of salary tax-free under the "expatregeling", falling to 27% from 2027 except for people already covered before 2024.
- The premium rates come from accountancy firms, because the official notice didn't open for us.
Sources: business.gov.nl, transition payment, SRA, October 2026
Employing someone in the Netherlands
- Employer costs on top of salary
- About 17% for a small employer on a permanent contract, by our sum, or about 22% on a flexible contract: unemployment 2.74% (7.74% on flexible contracts), disability 6.27% (7.63% for larger employers), childcare 0.50%, a return-to-work premium that varies by employer (about 1.5% on average) and the 6.10% health levy. All stop at €79,409 a year in 2026. Sector pension funds, where they apply, are extra. RSM Netherlands, Loonspecial 2026, Accountancy van Morgen, December 2025
- Minimum wage
- €14.99 an hour for workers 21 and over from 1 July 2026 (€14.71 from 1 January). It's set per hour, with lower rates for younger workers. Rijksoverheid, minimum wage 2026
- Holiday
- 4 times the weekly hours each year: 20 days on a 5-day week. There's no legal right to public holidays off; the contract or collective agreement decides. business.gov.nl, holiday entitlement, Rijksoverheid, public holidays
- Working hours
- Up to 12 hours a day and 60 a week, averaging no more than 48 a week over 16 weeks. Normal hours are set by the contract or collective agreement. business.gov.nl, Working Hours Act
- Probation
- Up to 2 months on a permanent contract; 1 month on a fixed-term contract over 6 months but under 2 years; none for 6 months or less. It only counts if agreed in writing. business.gov.nl, trial period
- Notice from the employer
- 1 month, plus a month for every 5 years' service, up to 4 months. business.gov.nl, notice period
- Severance
- A transition payment from the first day when the employer dismisses someone or doesn't renew their contract: a third of a month's pay per year of service, pro rata, up to €102,000 in 2026 or a year's pay if that's higher. Rijksoverheid, transition payment, August 2026, business.gov.nl, calculating the transition payment
- Extra pay the law requires
- A holiday allowance of at least 8% of gross annual pay, usually paid in May or June. For staff earning over 3 times the minimum wage, it can be reduced or dropped by written agreement. Rijksoverheid, holiday allowance
- Contract
- It can be verbal, but the key terms must be given in writing: the main ones within a week of starting, the rest within a month. We found no rule on language. business.gov.nl, employment contract
- Payroll and tax
- Pay periods can't be shorter than a week or, unless agreed in writing, longer than a month. The employer withholds wage tax and national insurance contributions. Civil Code 7:623 (wetboekplus.nl), Belastingdienst, employers not established in the Netherlands
- Sick pay
- Paid by the employer for up to 2 years, at least 70% of pay, topped up to the minimum wage in the first year. The employer must also help the employee back to work. business.gov.nl, sick pay
Providers and what they say about the Netherlands
What each provider's own website says about the Netherlands, in order of its published starting price. None of them publishes a separate price for the Netherlands; the starting prices are worldwide or regional (Papaya quotes EUR 650 in Europe), and what you pay is set by quote.
| Provider | Covers the Netherlands? | What it says | Starting price a month | |
|---|---|---|---|---|
| Skuad | Yes, on its own site | Listed in its coverage list | From USD 199 | Go to Skuad |
| Pebl (formerly Velocity Global) | Has its own page for it | - | USD 399 | Go to Pebl (formerly Velocity Global) |
| Multiplier | Has its own page for it | - | From USD 459 (annual), USD 499 monthly | Go to Multiplier |
| Deel | Yes, on its own site | Says it has its own entity | From USD 599 | Go to Deel |
| Remote | Yes, on its own site | Says it has its own entity | From USD 599 | Go to Remote |
| G-P (Globalization Partners) | Not stated | - | From USD 599 | Go to G-P (Globalization Partners) |
| Atlas HXM | Yes, on its own site | - | From USD 599 | Go to Atlas HXM |
| Papaya Global | Not stated | - | From USD 650 (EUR 650 in Europe) | Go to Papaya Global |
| Oyster | Yes, on its own site | - | From USD 699 | Go to Oyster |
| Rippling | Not stated | Says 80 countries, with no list | Quote only | Go to Rippling |
Coverage is each company's own claim, from its country pages and coverage lists; we haven't checked how each one employs there. Ask whether it uses its own company or a partner in the Netherlands.
Other countries
Employer costs, leave, notice, severance and the catches, with the providers that cover each one.
United KingdomIrelandGermanyFranceSwedenSwitzerlandBelgiumSpainPortugalItalyPolandRomaniaCanadaAustraliaSingaporeJapanIndiaPhilippinesSouth AfricaMexicoBrazilColombiaChileArgentina
All 25 countries side by side: employer cost at your salary, holiday, notice and redundancy pay