Employing in the Netherlands
In the Netherlands, the national minimum wage applies to everyone over the age of 15, with the rates varying between the ages of 15 to 21 and over. The following rates apply from the 1st July 2025:
- 18 years old – € 7.20
- 21 years old and over – € 14.40
In the Netherlands, individual tax rates and thresholds vary depending on an employee’s annual salary:
- Income up to €38,441 – tax rate of 35.82%
- Income between €38,441 to €76,817 – tax rate of 37.48%
- Income over €76,817 – tax rate of 49.5%
In the Netherlands, pensions consist of at least one of the following:
- A state pension
- A supplementary pension
- A private pension
Both the employee and employer make contributions although the amount varies depending on the pension scheme and employer.
In the Netherlands a standard working week consists of 40 hours, Monday to Friday.
The Working Hours Act stipulates that employees over the age of 18 may work for a maximum of 12 hours per day and 60 hours per week, although this is not allowed every week. An employee may work an average of:
- 48 hours per week over a 16-week period, or
- 55 hours per week over a 4-week period
Employee’s leave consists of several types:
- Statutory time off or paid leave, which is 4 times the number of hours worked per week (typically 20 days per year)
- Public holidays (there are 11 in the Netherlands)
- Maternity, Paternity and Parental leave
- Sick leave
Termination of an employment contract in the Netherlands is often only allowed with a good reason, and sometimes not at all.
Legally compliant grounds of dismissal can include:
- A business reason
- Long-term illness
- Regular absenteeism
- Incompetence
- Unacceptable behaviour
All dismissals require a minimum notice period to be given, which depends on the duration of the contract. For permanent contracts the notice period for both an employer and an employee is 1 month. Upon dismissal, you often must make a payment as compensation for dismissal, which is known as a transition payment.
