To successfully expand your business, determining the right compensation and benefits for your Netherlands employees needs to be a priority from day one. You must figure out the proper wages, bonuses, and...
Read MoreTo successfully expand your business, determining the right compensation and benefits for your Netherlands employees needs to be a priority from day one. You must figure out the proper wages, bonuses, and any supplemental benefits that can put you ahead of other employers, all while following Netherlands compensation laws and requirements.
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To successfully expand your business, determining the right compensation and benefits for your Netherlands employees needs to be a priority from day one. You must figure out the proper wages, bonuses, and any supplemental benefits that can put you ahead of other employers, all while following Netherlands compensation laws and requirements.
Simplify the process with Globalization Partners. We are a global PEO solution for customers looking to expand in the Netherlands, hire employees, and run payroll. As the Employer of Record, we will employ workers on your behalf and take care of all compliance concerns from Netherlands benefit management to compensation laws.
As of July 2022, the minimum wage in the Netherlands is 1,756.20 EUR per month for employees 21 and older. However, the minimum wage rate could change if your employee is covered under a collective bargaining agreement (CBA). It is best practice to outline the correct minimum wage in a written employment contract that the employee signs before their first day to avoid any misunderstandings.
Every employee in the Netherlands gets an 8% vacation allowance as a bonus under Netherlands compensation laws. They accrue this allowance monthly, and employers usually pay it out once a year in May.
Your Netherlands benefit management strategy must include guaranteed benefits. For example, the country celebrates 10 public holidays during which employees get the day off. Holidays that fall on the weekend are not compensated in lieu. Paid vacation time often depends on the applicable CBA. Globalization Partners currently does not operate under a CBA. The statutory minimum annual holiday entitlement is 20 days. However, skilled white-collar professionals generally receive 23-25 days per year. Some CBA’s grant additional leave days to older employees (55+ years). It may, therefore, be that your prospect expects you to match this, although this is not a general law.
Maternity and paternity leave is another guaranteed benefit in the Netherlands. Female employees get 16 weeks, starting with four to six weeks before the expected birth date and at least 10 weeks after giving birth. Fathers are entitled to 5 days of paid leave. For more information see the Maternity and Paternity section.
The second important aspect of the Netherlands benefit management includes offering any additional benefits that may not be required but are expected by employees. Employers in the Netherlands often provide a travel allowance that can go toward a leased car, or pay 100% of an employee’s train or bus fares for commuting.
Additional to the state pension, almost all employees in the Netherlands participate in a private pension through their employer. To learn what Globalization Partners offers, see Pension in the Netherlands.
Deciphering and sourcing these different benefits on your own is often difficult. Instead, you can benefit from the Netherlands benefit outsourcing services. Globalization Partners is here for you every step of the way, and we will make sure you stay totally compliant.
The most significant restrictions on your employees’ benefits and compensation relate to Netherlands compensation laws and any CBAs. Make sure the benefits you provide meet or exceed the CBA’s requirements. If your industry doesn’t have a CBA, you must provide the minimums guaranteed by law to stay compliant.
As your company grows in a new country, benefits management will play a role in your success. When you create your benefits plan, you can make your company more competitive in the labor market and improve employee morale.
Your benefits plan can be an excellent way to support your success in a new country. While you’ll have to provide specific benefits based on labor regulations, your provisions can do far more than keep you compliant.
The perks and provisions you provide for your employees will show them how much you value their hard work. A well-developed benefits plan can improve morale at your workplace and improve retention. Competitive benefits can also encourage workers to apply for your vacancies.
Possible fringe benefits can include:
Employers are responsible for meeting labor law requirements, including benefits regulations. Required provisions in the Netherlands include:
Holiday allowance is distributed in the form of a single payment for annual leave, and it should be 8 percent of an employee’s gross yearly wage.
The challenge of employee benefit planning is meeting your workers’ needs without exhausting your company’s resources. Your goal is to find a balance between your financial capabilities and what employees expect. You can follow a few basic steps as you start planning.
Understanding your income and expenses can help you allocate funds to your benefit plan. Take the time to estimate your earnings and how your benefits spending will fit into them.
It’s also helpful to consider your goals and how you can use your perks to meet them. For instance, if you want to compete with other companies in your industry, you can create a benefits plan similar to theirs.
Qualified job seekers often compare benefits across companies to find which employers represent their needs. To make your plan competitive, you need to meet or exceed the provisions other companies in your industry offer. Research businesses similar to yours to find out which benefits can be a valuable investment.
This research phase can also be employee-focused. You can learn more about workers’ needs by conducting surveys or interviews with employees in the area.
With a budget and an understanding of employee needs and expectations, you can create your plan. Start by allocating funds to the required benefits, then dedicate your remaining budget to additional provisions that reflect industry standards.
Every company pays a different amount for benefits based on its size, how many benefits it provides, and what types it offers. As a result, knowing the average cost of benefits in the Netherlands will not be especially helpful in your planning. It’s best to set a personal budget based on earnings and expenses so you can allocate funds accordingly.
While calculations of your costs will look different for every benefit, you can find some guidance in the labor regulations. For example, social security contributions include a set percentage for employees and employers. Employees must contribute 27.65 percent, which includes:
Employers pay social security toward employment insurance, which includes:
All benefits are classified as employment income in the country. As a result, all provisions need a monetary amount attached to them so employees can include them in their annual earnings.
The country has a universal healthcare system for residents that combines public and private care. While most health care is free to residents, the country requires every working person to hold a basic private insurance scheme to fill in any gaps in the public system.
Employers contribute to these health insurance minimums through social security contributions at a rate of 6.7 percent of employees’ incomes.
As your company grows in a new country, benefits management will play a role in your success. When you create your benefits plan, you can make your company more competitive in the labor market and improve employee morale.
Your benefits plan can be an excellent way to support your success in a new country. While you’ll have to provide specific benefits based on labor regulations, your provisions can do far more than keep you compliant.
The perks and provisions you provide for your employees will show them how much you value their hard work. A well-developed benefits plan can improve morale at your workplace and improve retention. Competitive benefits can also encourage workers to apply for your vacancies.
Possible fringe benefits can include:
Employers are responsible for meeting labor law requirements, including benefits regulations. Required provisions in the Netherlands include:
Holiday allowance is distributed in the form of a single payment for annual leave, and it should be 8 percent of an employee’s gross yearly wage.
The challenge of employee benefit planning is meeting your workers’ needs without exhausting your company’s resources. Your goal is to find a balance between your financial capabilities and what employees expect. You can follow a few basic steps as you start planning.
Understanding your income and expenses can help you allocate funds to your benefit plan. Take the time to estimate your earnings and how your benefits spending will fit into them.
It’s also helpful to consider your goals and how you can use your perks to meet them. For instance, if you want to compete with other companies in your industry, you can create a benefits plan similar to theirs.
Qualified job seekers often compare benefits across companies to find which employers represent their needs. To make your plan competitive, you need to meet or exceed the provisions other companies in your industry offer. Research businesses similar to yours to find out which benefits can be a valuable investment.
This research phase can also be employee-focused. You can learn more about workers’ needs by conducting surveys or interviews with employees in the area.
With a budget and an understanding of employee needs and expectations, you can create your plan. Start by allocating funds to the required benefits, then dedicate your remaining budget to additional provisions that reflect industry standards.
Every company pays a different amount for benefits based on its size, how many benefits it provides, and what types it offers. As a result, knowing the average cost of benefits in the Netherlands will not be especially helpful in your planning. It’s best to set a personal budget based on earnings and expenses so you can allocate funds accordingly.
While calculations of your costs will look different for every benefit, you can find some guidance in the labor regulations. For example, social security contributions include a set percentage for employees and employers. Employees must contribute 27.65 percent, which includes:
Employers pay social security toward employment insurance, which includes:
All benefits are classified as employment income in the country. As a result, all provisions need a monetary amount attached to them so employees can include them in their annual earnings.
The country has a universal healthcare system for residents that combines public and private care. While most health care is free to residents, the country requires every working person to hold a basic private insurance scheme to fill in any gaps in the public system.
Employers contribute to these health insurance minimums through social security contributions at a rate of 6.7 percent of employees’ incomes.
Globalization Partners is here to support your growth with a team of HR professionals and legal experts. Get in touch with us today to learn more.
THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). G-P does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect G-P’s product delivery in any given jurisdiction. G-P makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.
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