The Netherlands has a population of more than 17 million people, with thriving food, agriculture, and energy industries. Many types of business entities can be created including partnerships, private companies, and sole proprietors. Companies must first register with the Chamber of Commerce before beginning operations.
The corporate tax rate varies by industry and type of company structure. Some labor and payroll considerations in the Netherlands.
Standard work hours are 36-40 per week.
Employment details must be written and provided to the employee.
Collective bargaining agreements are created at the national, industry, and company levels.
EU/EEA and Swiss nationals do not need a work permit, but other foreign nationals must have a residence permit and work permit to live and work in the Netherlands.
New hires need to be locally registered.
Employers must prove they tried to find local, EU/EEA/Swiss talent before hiring foreign workers.
Social security contributions are withheld from employee pay.
In accordance with the labor laws in the Netherlands, payment for work missed due to illness is as follows:
After two years of sick leave, there is a compensation for the sick pay by the Dutch Government.
When planning to hire in the Netherlands, it's crucial to be aware of the official holidays when employees may not be available for work.
Is the Netherlands in your hiring or expansion plans? Paylocity can help. Our cloud-based platform helps you navigate the waters of international payroll.
And don’t sweat complicated compliance — our hybrid service model includes a U.S.-based team and in-country experts in the Netherlands to help when you have questions.
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