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% vakantiegeld (holiday allowance) is paid on top of base salary, typically lumped into May or June. 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.
- Vakantiegeld
- 8% of annual salary, paid as holiday allowance in May/June.
- 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
Sources
Statutory rates and rules verified against the following authorities. We update this page when rates change.