The Netherlands has a population of more than 17 million people, with thriving food, agriculture, and energy industries. As the sixth-largest EU economy with a highly developed infrastructure and an advantageous position in mainland Europe, the Netherlands is a well-situated base for foreign companies looking to expand their global reach.
Under Dutch law, businesses are required to register with the Chamber of Commerce (KVK) to be listed in the Business Register. In some instances, this task can be delegated to a civil-law notary.
It is also necessary under Dutch law to register as an employer with the Tax Administration to obtain a payroll tax number. Foreign companies will also need to complete a foreign company registration form.
Within a few weeks after registration, the Tax Administration will use the company’s business information to determine which taxes will be required, which most commonly include:
According to the Tax Administration, employers are obligated to pay into multiple social insurance schemes including:
Per Dutch government guidance, contribution rates vary and are updated in January and July each year.
There is no legal requirement for a Netherlands bank account; however, many employers choose to maintain one for administrative convenience.
Beginning January 1, 2026, the following minimum wage rates apply. Employees between the ages of 15 and 20 fall under the youth minimum wage statutory guidelines.
|
Category of Employee |
Hourly Rate |
|
Ages 21+ (National Minimum Wage) |
€14.71 |
|
Age 20 |
€11.77 |
|
Age 19 |
€8.83 |
|
Age 18 |
€7.36 |
|
Age 17 |
€5.81 |
|
Age 16 |
€5.07 |
|
Age 15 |
€4.41 |
As of 2024, there is no longer a fixed monthly, weekly, or daily minimum wage. The pay per week or month depends on the number of hours worked (official working hours).
Official working hours include at least the following:
The official number of working hours can be different every month, because some months have more working days than others. Minimum wage rates are adjusted every six months.
There is no legal requirement for pay frequency; however, for salaried employees, monthly (12) is the most common and for hourly employees, weekly (52) is common. Dutch regulations outline timing requirements for how soon wages must be paid after the end of the pay period.
Under the Working Hours Act, employees aged 18 and over can work a maximum of 12 hours per day and 60 hours per week. However, hours worked cannot average more than 48 hours per week over a 16-week period, or 55 hours per week over a 4-week period. Exceptions can be made for seasonal work or during peak times.
There is no law that requires higher pay for overtime. Employers can make their own independent arrangements with employees or through collective labor agreements (CAO).
Payroll Taxes consist of the following:
Under Dutch regulations, payroll taxes must be withheld and submitted monthly while any annual income statements must be issued to employees at the end of the calendar year.
Employees are entitled to at least 16 weeks of maternity leave. The leave can begin up to six weeks prior to the due date and continues for 10 weeks following birth. According to the Employee Insurance Agency (UWV) employees are entitled to full salary during this period, and employers may be eligible to apply for reimbursement.
Partners of employees are entitled to one week of leave, to be taken within four weeks after the birth. They may also take an added five weeks of leave at a reduced salary which must be taken within the first six months after birth.
Employees with children under the age of eight may also take up to 26 weeks of added parental leave, at reduced salary for the first nine weeks, and the remaining weeks unpaid. Employers can be reimbursed for most parental leave payments by applying through the Employee Insurance Agency (UWV).
Employees are entitled to at least 4 times the number of working days that they work per week as annual leave (typically 20 days), or 4 times the number of hours worked per week. Leave days can be carried over but expires on July 1 of the following year. Any accrued holiday leave must be paid out at the time of termination.
In addition to time off for annual leave, Dutch regulations specify that employers must give employees a holiday allowance of at least 8% of their gross annual salary for the prior year. Most employers pay the holiday allowance once a year in May or June.
The earliest current retirement age is 67 under the Old Age Pension (AOW). Depending on the applicable collective labor agreement or industry roles, supplemental pensions may also apply.
Employees that continue to work after reaching retirement age are subject to different labor laws and statutory requirements. More information can be found here.
Employers must give employees who have been in continuous service notice, depending on the length of the employee’s service. A shorter notice period is allowed only if agreed to by contract:
|
Length of Service |
Minimum Notice Period |
|
Less than five years |
One month |
|
Five to less than ten years |
Two months |
|
Ten to fourteen years |
Three months |
|
Fifteen years or more |
Four months |
Dutch law provides for a statutory severance pay (“transition payment”) upon termination as defined by the government. The payment amount is typically one third of gross monthly salary times the number of full years worked. See here for more information.
Per Dutch employment law, employees generally may not be dismissed during the first two years of illness. During this period, Dutch law requires employers to pay sick pay of up to 70% of the employee’s salary to the employee types below:
Employees who can return to work after illness must be consulted based on the employers reintegration obligations.
The Netherlands recognizes 10 or 11 public holidays each year; however, Dutch law generally does not require employers to provide these days off unless specified by employment contract or collective labor agreement.
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The above information was last updated March 02, 2026. It is not intended as legal or tax advice.