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EOR IN Netherlands
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A guide to employing and growing your team in Netherlands
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The Netherlands features a highly stable, competitive economy with strengths in logistics, technology, agriculture, and finance. The Dutch labor market is governed by the Dutch Civil Code and often supplemented by industry-specific Collective Labour Agreements (CAO). Employment in the Netherlands is noted for strong protections for employees. As of January 1, 2026, the statutory minimum wage for employees aged 21 and older is EURO14.71 per hour.
Employer Contributions
Social Security: 18%
Work Injury Insurance: 1.5%
Total Employer Contribution: 19.5%
Employee Payroll Taxes
Social Security: 27.65%
Total Employee Contribution: 27.65%
Employee Income Tax Rates
Up to EURO38,883: 35.75%
EURO38,883 – EURO78,426: 37.56%
Above EURO78,426: 49.50%
Statutory Leave
Employees are entitled to a minimum of 4 times their weekly working hours in annual leave (e.g., 20 days for a full-time 40-hour week). Additionally, the Netherlands observes various public holidays, including New Year’s Day, King’s Day, and Christmas. Unused statutory leave can be carried forward and typically expires 6 months after the end of the calendar year in which it was accrued.
Pregnancy and Maternity Leave
Female employees are entitled to 16 weeks of leave. This is split into 6 weeks of pregnancy leave (beginning 4-6 weeks before the due date) and 10 weeks of maternity leave after birth. It is compensated at 100% of the employee’s salary, funded by the Employee Insurance Agency (UWV).
Paternity Leave
Fathers or partners are entitled to 1 week of paid leave (Geboorteverlof) to be taken within the first 4 weeks after birth, compensated at 100% of salary by the employer. They may also take an additional 5 weeks of extended paternity leave within the first 6 months, compensated at 70% by the UWV.
Work-Related Injury Leave
Parental Leave: Parents are entitled to 26 weeks of parental leave until the child turns eight. For the first 9 weeks taken within the first year, parents receive a benefit of 70% of their salary from the UWV.
Other Leaves: Includes short-term and long-term care leave for sick family members, emergency leave, and adoption/foster care leave.
Termination Process
Termination in the Netherlands is strictly regulated. Employers generally require a valid reason for dismissal (e.g., economic redundancy, frequent illness, or poor performance) and often must obtain approval from the UWV or a court. If an employment contract is terminated, the employer may be required to pay a “transition payment” (transitievergoeding) based on the employee’s salary and years of service.
Notice Period
Statutory notice periods depend on the employee’s length of service:
Less than 5 years: 1 month
5 to 10 years: 2 months
10 to 15 years: 3 months
15+ years: 4 month
Probation Period
Must be agreed upon in writing. It cannot exceed two months and is prohibited in fixed-term contracts lasting less than six months. During this period, either party may terminate the contract immediately without notice.