TL;DR, Hiring in Netherlands
- Fully-loaded employer cost: ~20% on top of gross
- WW (unemployment) and WIA (disability) are the main employer contributions
- 30% ruling provides tax-free allowance for qualifying expats (now capped)
- Vakantiegeld, 8% holiday allowance paid annually in May/June
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Statutory employer costs in Netherlands
In the Netherlands, employer social contributions total roughly 18–22% on top of gross salary, including WW unemployment (~2.7%), WIA disability (~7.5%), Zvw healthcare (~6.6%), and sector-specific funds. The 8% vakantiebijslag (holiday allowance) is paid on top of base salary, typically as a lump sum in May or June. Enter the annual base salary and the calculator adds the 8% holiday allowance on top as statutory additional pay, then charges employer contributions on the total. Pension is not statutory but is required by ~90% of sector collective agreements.
| Contribution | Employer rate | Notes |
|---|---|---|
| WW (general unemployment) | 2.64–7.64% | Lower rate for permanent contracts; higher for fixed-term |
| WIA (disability) | ~7.5% | Includes WGA and IVA components |
| Zvw (healthcare income-dependent) | 6.57% | Capped at €71,628 income in 2024 |
| Sector fund (Whk) | 0.5–3.0% | Sector-dependent |
Mandatory employee benefits
Beyond statutory contributions, Netherlands law requires the following benefits the employer must fund.
- Vakantiebijslag (vakantiegeld)
- Statutory: at least 8% of the wage earned in the year (WML arts. 15–17), normally paid in May or June. Included in this calculator's estimate as statutory additional pay, calculated as 8% of the entered annual base salary, and inside the employer contribution base. Employees earning more than three times the statutory minimum wage may agree in writing to a lower or nil allowance; the calculator models the statutory default.
- Holiday leave
- Minimum 4× weekly hours per year, 20 days for full-time.
- Pension
- Not statutory but mandatory under most sector CAOs; check BPF obligation.
Termination, notice and severance
Probation
Maximum 1 month for contracts ≤2 years; 2 months for longer/permanent.
Notice period
1–4 months depending on tenure (1 month per 5 years of service).
Severance
Transition payment: 1/3 month per year of service, no cap on years.
Common compliance pitfalls
- Termination requires UWV permit or Subdistrict Court approval, you cannot simply dismiss.
- Chain rule: 3 fixed-term contracts in 3 years automatically becomes permanent.
- 30% ruling has been scaled back (30/20/10 over 5 years from 2024); model the real net for expat hires.
Frequently asked questions
A tax facility for qualifying expats relocating to the Netherlands: up to 30% of gross salary is paid as a tax-free allowance for up to 5 years. As of 2024 it's being scaled back to 30/20/10 across the term.
Yes, 8% holiday allowance is on top of gross, typically paid as a lump sum in May or June. EOR quotes should make clear whether the gross figure is including or excluding vakantiegeld.
No. You need either employee consent (settlement), a UWV permit (for economic/long-term illness reasons), or court dissolution (for personal reasons). All routes trigger the statutory transition payment.
Sources
Statutory rates and rules verified against the following authorities. We update this page when rates change.