Hire employees in the Netherlands using an Employer of Record

Three Dutch rules shape every hire here.

The minimum wage is set per hour, not per month. Every employee earns a holiday allowance of at least 8% on top of salary. And when someone falls ill, the employer keeps paying at least 70% of their salary for up to two years.

None of that stops you hiring in the Netherlands, but all three belong in the budget from day one. The rules below come from Business.gov.nl and Rijksoverheid, the government's own portals, and from the Belastingdienst, the Dutch tax administration, and each one is linked in the source list at the end.

What are your options for a Dutch hire?

There are three set-ups to weigh here: a Dutch BV of their own, a self-employed contractor, or an employer of record (EOR).

A BV makes sense for a Dutch team you plan to keep growing. You then file the wage tax returns, pay the premiums and apply the CAO yourself.

Self-employed contractors are judged on the actual working relationship, and both sides have to assess it. Enforcement against false self-employment resumed on 1 January 2025, so a relationship that works like employment can lead to payroll tax assessments.

Where the work is independent, Hire with Columbus can take care of the contractor agreement and payments from $22.50 per contractor per month. Through an EOR, the Dutch contract, payroll and filings sit with the provider while you manage the work, from $179/month per employee with Hire with Columbus and with onboarding in 2 to 3 days in most cases.

How Dutch law treats payroll employment

The Netherlands has specific rules for payrolling, where a payroll company employs someone you recruited while you supervise their work. The employee is entitled to employment terms equivalent to your own staff's, including an adequate pension arrangement. Dismissal protection still applies, and ending the service agreement with the payroll company is not, on its own, a ground for dismissal.

So ask any provider how its arrangement fits these rules, which pension scheme your hire will join, and what happens to the employee if you end the service.

How do Dutch employment contracts work?

A contract can be agreed verbally, but the key details have to be given in writing within one week of starting, and the rest within one month. Put down the legal employer, pay, hours, contract duration and the collective labour agreement (CAO), pension and leave terms that apply.

Temporary contracts and the chain rule

The usual limit is three temporary contracts in a row within three years. A fourth contract, or a chain that runs longer than three years, becomes permanent. Gaps of six months or less generally don't break the chain, and a CAO can change the numbers.

Probation

A CAO can set different terms.

On-call contracts

On-call workers normally get 4 days' notice of when they're needed, which a CAO can cut to 1 day. After 12 months, you have to offer fixed hours based on the previous year's average. The employee can say no.

Non-compete clauses

A non-compete has to be agreed in writing with an adult employee, and it can't unreasonably restrict their future work. In a temporary contract, it's only valid if the contract spells out the business interest that justifies it.

What does a Dutch payroll include?

Agree the pay period in writing: monthly, four-weekly or weekly are all possible. Pay follows the period worked, and at least the net minimum wage has to be paid by bank transfer.

Minimum wage and median pay

From 1 July 2026, the minimum wage for employees aged 21 and over is €14.99 gross per hour. Younger workers have their own rates.

The Netherlands dropped the fixed monthly minimum in 2024, so monthly pay depends on the hours. On a 40-hour week, it works out at about €2,597.77 a month.

CBS, the Dutch statistics office, gives a median of €26.90 gross an hour for 2025, a provisional figure without overtime or special payments. Use it to sanity-check an offer, not to set one.

Holiday allowance

Every employee earns holiday allowance (vakantiegeld) of at least 8% of gross pay, overtime included. It's separate from paid time off. A CAO, or a written agreement for pay above three times the minimum wage, can change it.

There's no statutory 13th month or year-end bonus. A CAO or the contract can make one compulsory, so check before you rule it out.

Employer contributions

Dutch employers pay employee-insurance premiums and a healthcare levy on top of salary. For a standard case, a medium or large employer with a written permanent contract, the Belastingdienst's 2026 rates are:

These apply to pay up to €79,409 a year. A small employer pays a lower Aof rate of 6.27%, while flexible and on-call contracts pay the high unemployment rate of 7.74%. Each employer also pays a Whk premium set individually by the Belastingdienst, and a mandatory sector pension fund adds contributions in some industries.

To see these layers on a real salary, try the Dutch salary cost calculator.

What to put in a Dutch budget

When you price a Dutch hire, list each layer on its own. One percentage won't cover it:

• Gross salary, at or above the hourly minimum and any CAO scale.
• Holiday allowance of at least 8% of gross pay.
• Employer premiums and the healthcare levy, 16.97% in the standard case above, up to the €79,409 cap.
• The Whk premium, which differs per employer.
• Pension, through the client's scheme, the provider's scheme or a mandatory sector fund.
• Sick pay risk, since salary continues during illness for up to two years.
• Any 13th month or bonus the CAO or contract requires.

Income tax and national insurance

The employer withholds wage tax, which includes the employee's national insurance. For people below state pension age, the 2026 Box 1 rates are:

The first band already includes national insurance: 17.90% state pension (AOW), 0.10% survivors (Anw) and 9.65% long-term care (Wlz). Tax credits reduce what people actually pay, so these rates are not a take-home estimate.

What are the Dutch working-time limits?

Dutch law sets ceilings, not a standard week. Adults can work up to 12 hours a shift and 60 hours a week, but averages must stay within 55 hours a week over 4 weeks and 48 hours a week over 16 weeks. The normal full-time week comes from the contract or the CAO.

Rest is protected too. The general rule is 11 hours in a row off each day, which can drop to 8 hours once a week when the work requires it, and 36 hours in a row off each week.

Which leave is statutory in the Netherlands?

Annual leave

The statutory minimum is four times the weekly working hours each year. On a 40-hour week that's 160 hours, or 20 working days.

Someone who works part of the year gets a proportional amount. Statutory leave not taken normally expires in July of the following year.

Public holidays in 2026

The official calendar has 11 public holidays in 2026:

Here's the catch: a public holiday doesn't automatically give an employee a legal right to the day off. Time off and pay on these days come from the CAO or the employment contract.

Sick pay: the two-year rule

When an employee falls ill, the employer normally keeps paying at least 70% of their salary for up to two years, and at least the minimum wage in the first year. A CAO or the contract often requires more.

The employer also has reintegration duties during that time. If UWV, the employee insurance agency, decides those efforts fell short, it can extend the employer's wage payments by up to another year. It's easy to leave out of a budget, so ask your provider how sick pay is billed.

Family leave

Care leave comes on top. Short-term care leave covers twice the weekly hours each year at 70% of pay, and at least the minimum wage. Long-term care leave covers six times the weekly hours, unpaid.

How do you end a Dutch employment contract?

In the Netherlands, notice alone doesn't end a job. A dismissal needs a valid ground and the right route. Contested dismissals for economic reasons or long-term illness normally go through UWV, which has to give permission first, and other grounds go to court.

Employment can also end by written mutual agreement. The employee can withdraw within 14 days of signing, or 21 days if the agreement doesn't mention that right.

Notice

The contract or CAO can change these periods.

Transition payment

An employee dismissed by the employer is generally owed a transition payment (transitievergoeding), though eligibility depends on how the employment ends. It's one-third of a month's salary for each year of service, counted from the first day, with a proportional amount for part years. For 2026 it's capped at €102,000 gross, or one year's salary if that's higher.

What does a non-Dutch hire need?

The highly skilled migrant route is the usual way to sponsor a non-EU hire, and only employers recognised by the IND, the immigration service, can apply. Sponsor duties stay in place when a payroll company supplies the employee to a client.

For a first application in 2026, the gross monthly salary, excluding holiday allowance, must be at least:

• €5,942 for applicants aged 30 or over
• €4,357 for applicants under 30
• €3,122 under the reduced criterion, for applicants who qualify for it

What has changed recently?

• 1 January 2025: enforcement on false self-employment resumed. Contractor relationships that work like employment can lead to payroll tax assessments.
• 1 January 2026: new payroll rates. The employer healthcare levy is 6.10% on pay up to €79,409.
• 1 January 2026: transition payment cap. The cap for 2026 is €102,000 gross.
• 1 January 2026: skilled-migrant thresholds. €5,942 a month at 30 and over, €4,357 under 30.
• 1 July 2026: minimum wage increase. €14.99 gross an hour for employees aged 21 and over.

Employing someone in the Netherlands through Hire with Columbus

Hire with Columbus is the legal employer for your Dutch hire. We run the contract, the payroll and holiday allowance, the wage tax returns and the employee-insurance premiums, and you lead the work.

It costs from $179/month per employee, contractors from $22.50/month, and onboarding is typically 2 to 3 days once the offer is accepted. Check the pricing, try a salary in the Netherlands cost calculator or get started.

Sources

The figures in this guide come from the government pages below. Several are in Dutch only.

• Business.gov.nl, Payrolling (checked 13 September 2026)
• Business.gov.nl, Avoid false self-employment (as of 1 January 2025)
• Business.gov.nl, Employment contracts (checked 13 September 2026)
• Rijksoverheid, When a temporary contract becomes permanent (checked 13 September 2026)
• Rijksoverheid, Length of a probation period (checked 12 September 2026)
• Business.gov.nl, On-call employees (checked 13 September 2026)
• Business.gov.nl, Non-compete clause (checked 13 September 2026)
• Business.gov.nl, Salary and payslip (checked 13 September 2026)
• Government of the Netherlands, Minimum wage amounts (rate from 1 July 2026)
• CBS, Hourly earnings of employees (2025 provisional, published 18 August 2026)
• Business.gov.nl, Paying holiday allowance (checked 13 September 2026)
• Business.gov.nl, 13th month or year-end bonus (as of 1 October 2026)
• Belastingdienst, Payroll tax rates, amounts and percentages from 1 January 2026 (as of 1 January 2026)
• Belastingdienst, Zvw contribution percentages (as of 1 January 2026)
• Belastingdienst, National insurance contributions (as of 1 January 2026)
• Belastingdienst, Box 1 income tax rates (as of 1 January 2026)
• Rijksoverheid, Legal rules on working and rest times (checked 12 September 2026)
• Ondernemersplein, Public holidays and statutory leave days (checked 12 September 2026)
• Government of the Netherlands, Public holidays in the Netherlands (2026 calendar)
• Business.gov.nl, Sick leave: your employee calls in sick (checked 13 September 2026)
• Rijksoverheid, Calculating pregnancy and maternity leave (checked 12 September 2026)
• Rijksoverheid, Birth leave for partners (checked 13 September 2026)
• Rijksoverheid, Paid parental leave (checked 12 September 2026)
• Business.gov.nl, Leave schemes (checked 13 September 2026)
• Rijksoverheid, Employer notice periods (checked 13 September 2026)
• Rijksoverheid, Transition payment amount (as of 1 January 2026)
• Business.gov.nl, Dismissal procedures (checked 12 September 2026)
• IND, National highly skilled migrant scheme (checked 13 September 2026)
• IND, Required amounts and income requirements (as of 1 January 2026)