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Labor Laws in Netherlands

  • Annual Leave: 20 - 25 days
  • Maternity Leave: 16 weeks
  • Public Holidays: 10
  • Workweek: 36 - 40 hours per week.

Income Tax in Netherlands

The Netherlands has a progressive income tax with rates from 9.28% to 49.5%.

Value Added Tax (VAT) in Netherlands

The standard Commercial Tax Rate is 21%.

Social Security in Netherlands

Employer Contributions

  • Employers pay social security contributions to their employees, which vary depending on the industry sector.
  • The average yearly contribution paid by the employer amounts to approximately €6,576 per employee with a permanent contract and €9,438 per employee with a temporary contract.
  • Employers are required to register their employees with a pension fund, with contributions ranging from 12-20% of the pensionable salary.

Employee Contributions

  • Employees pay social security contributions through payroll tax, which is collected by the employer.
  • As of 2023, the total social security contributions paid by employees amount to 27.65% of their salary, broken down as follows:
    • 17.9%: AOW (old-age pension scheme)
    • 0.10%: ANW (survivor benefit scheme)
    • 9.65%: WLZ (long-term care scheme)
    • Social security contributions are levied on income up to a maximum of €34,712 under the national insurance regulations.

Work Visas in the Netherlands

Here are the main work visas available in the Netherlands:

Combined Residence and Work Permit (GVVA)

  • Non-European Economic Area (EEA) nationals planning to work for longer than 3 months.
  • This permit combines both residence and work permits into one application. Validity: Maximum of 1 year, with the possibility of renewal.

Work Permit (TWV)

  • Non-EEA nationals working for less than 3 months or those not eligible for a GVVA.
  • This is a standard work permit that must be combined with a residence permit.
  • Typically issued for the duration of the employment contract.

European Blue Card

  • Highly skilled workers with a Bachelor’s or Master’s degree.
  • Allows migrants to live and work in the Netherlands and other EU countries.
  • Minimum gross annual salary of approximately €70,022.88.
  • Valid for up to 4 years.

Highly Skilled Migrant Visa

  • Individuals with a job offer from a recognized sponsor in the Netherlands.
  • Aimed at attracting skilled workers to fill labor shortages.
  • Must meet specific salary thresholds set by the Dutch government.

Hire Dutch Talent with Global Expansion

Setting up a company in the Netherlands can be expensive and complex. Global Expansion simplifies your entry into this market.

We handle hiring, HR, and payroll while ensuring compliance with local regulations, all without establishing a local entity.

Our Netherlands Employer of Record (EOR) solution lets you focus on your business growth.

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