Hiring in new markets creates growth momentum, along with added regulatory responsibilities. Despite its small size, the Netherlands offers outsized opportunity, with a skilled talent pool, business-friendly environment, and easy access to the wider European market. 

A Netherlands EOR minimizes legal risks and maximizes employment efficiencies. As a global employer of record (EOR), G-P manages everything on your behalf, including employment contract generation and benefits. With us, you can hire skilled talent in 180+ countries, quickly and easily — without setting up new entities.


We have the largest team of HR and legal experts in the industry to take care of all your employment needs in the Netherlands. 

Simplify hiring in the Netherlands with an employer of record

Partnering with an EOR allows you to hire anywhere quickly and compliantly. This approach supercharges your reach and scalability, all without needing a local entity.

An EOR acts as the legal employer, managing local HR responsibilities for you. It minimizes legal risks and optimizes costs associated with employment and payroll.

The EOR hiring process in the Netherlands

  1. Partner with a global employment expert. Choose an EOR with deep expertise in the Netherlands. They’ll be your guide through the local legal landscape.

  2. Source your ideal candidate. You find the best talent for your needs, and the EOR handles the rest.

  3. Draw up a compliant employment contract. Your EOR drafts a locally compliant contract that’s in line with the Netherlands’ labor law and the Working Hours Act. 

  4. Onboard and manage your team. The EOR manages all aspects of the employment lifecycle. This includes registering the employee with the Netherlands’ tax agency and social security system, processing payroll, and administering benefits.

Watch how an EOR works

Employment contracts in the Netherlands

A verbal employment contract is legally binding in the Netherlands, but a written contract is standard practice. By law, employers must have key details in writing. 

These include the names and addresses of both parties, work location, job title, start date, contract duration, salary, working hours, holiday entitlement, notice periods, pension details, and any applicable collective bargaining agreement (CBA). Certain clauses, such as a probation period or a non-compete clause, are only valid if agreed in writing.

All compensation amounts are usually in euros (EUR), and some CBAs or sector rules may require this. However, you can have these amounts in another currency if both parties agree and you’re compliant with Dutch tax and social security rules. 

Probation periods

A probation period must be included in the written employment contract to be valid. The maximum length depends on the contract length:

  • Contract of six months or less: No probation period

  • Contract longer than six months but less than two years: Maximum one-month probation

  • Contract of two years or longer, or an indefinite contract: Maximum two-month probation

During probation, either party may terminate the contract immediately without notice or reason, as long as the termination isn’t discriminatory.

Leave entitlements in the Netherlands

Working hours in the Netherlands

The Working Hours Act (Arbeidstijdenwet) sets guidelines for working time. While the maximum is 12 hours a day and 60 hours a week, employees can’t work more than an average of 48 hours a week over 16 weeks. Most full-time workweeks are between 36 and 40 hours.

A Netherlands employer of record ensures your team aligns with Dutch working hour regulations and stays compliant. 

Public holidays in the Netherlands

There’s no law mandating a paid day off for public holidays, but it’s standard practice to grant them in a contract or CBA. The Netherlands generally observes the following public holidays:

  • New Year's Day

  • Good Friday (not a mandatory day off for all)

  • Easter Monday

  • King's Day

  • Liberation Day (an official public holiday every five years)

  • Ascension Day

  • Whit Monday (Pentecost Monday)

  • Christmas Day

  • Boxing Day

Vacation days in the Netherlands

The legal minimum annual leave is four times the number of weekly working days, which equals 20 days for a full-time employee. However, it’s standard to offer 25 vacation days a year.

Sick leave in the Netherlands

By law, employers must continue paying employees during sickness for up to 104 weeks (two years). The minimum payment is 70% of the employee's salary. CBAs often require employers to pay 100% of the salary during the first year of sickness and 70% during the second.

Maternity, partner, and parental leave in the Netherlands

  • Maternity leave: Pregnant employees are entitled to 16 weeks of leave. This is typically taken 4-6 weeks before the due date and at least 10 weeks after birth. The Netherlands’ Employee Insurance Agency (UWV) pays 100% of the employee’s salary, capped at the maximum daily wage.

  • Partner leave: The birthing parent’s partner is entitled to one workweek of fully paid leave, to be taken within four weeks of the child's birth. This is paid by the employer.

  • Additional partner leave: Partners can take up to five extra weeks of leave within the first six months after birth. The UWV pays 70% of their salary during this leave, capped at the maximum daily wage.

  • Parental leave: Each parent is entitled to 26 weeks of parental leave for each child under eight. Of these 26 weeks, nine are paid by the UWV at 70% of the employee's salary (capped) if taken within the child's first year.

How an employer of record in the Netherlands helps manage leave entitlements

A Netherlands EOR manages entitlements, from annual and sick leave to parental and other time off. An EOR reduces the risk and complexity of leave management by handling all the administration and coordination with the UWV.

Health insurance and supplementary benefits in the Netherlands

Employers must pay an income-related contribution in line with the Healthcare Insurance Act (Zorgverzekeringswet or ZVW). As of 2026, this contribution is 6.10% of the employee's total salary, capped at an annual salary of EUR 79,409. This is paid directly to the Dutch Tax and Customs Administration.

All residents in the Netherlands are also legally required to take out a private basic health insurance policy (basisverzekering). An EOR in the Netherlands can help with this and incorporate any allowances into a compliant benefits package. 

Pensions and other benefits

Pensions: The Dutch pension system is undergoing significant reform under the Future of Pensions Act, with a transition period until 2028. Occupational pensions, provided by employers in addition to the basic state pension, are common — and often mandatory — under a CBA. These are usually set up through pension funds or insurance companies. 

For 2026, pension contributions are calculated based on the part of an employee’s salary that’s between EUR 19,172 (the lower threshold, called the franchise) and EUR 137,800 (the upper limit).

Holiday allowance: All employees are entitled to a holiday allowance of 8% of their total annual salary. This is typically paid out in May.

Other benefits: Commuting allowances and company cars are common supplementary benefits. We recommend budgeting about 22% on top of the total salary to cover all employer costs, including social security contributions and other benefits.

How an employer of record helps with benefits in the Netherlands

A Netherlands EOR streamlines benefits admin and compliance, including health insurance. The EOR manages social security, administers supplementary benefits (like commuting allowances), and stays updated on regulatory changes.

Bonuses in the Netherlands

A 13th-month bonus isn’t legally required unless it’s written into an employment contract or CBA, but it’s widely offered in practice.

Termination and severance in the Netherlands

Terminating an employment contract in the Netherlands is strictly regulated. An employer typically needs prior permission from the UWV (for economic or long-term sickness reasons) or the cantonal court (for personal reasons). The most common method of termination is a mutual settlement agreement.

Notice periods: The legal notice period for an employer is based on the employee's length of service:

  • Less than five years of service: One month

  • 5–10 years of service: Two months

  • 10–15 years of service: Three months

  • More than 15 years of service: Four months

The legal notice period for an employee is one month.

Transition payment: If the employer initiates termination, the employee is entitled to a transition payment. This is calculated as a third of a month's salary for each year of service. As of 2026, this payment is capped at EUR 102,000 or one year's salary if higher.

A Netherlands EOR helps you stay compliant with offboarding and terminations by navigating strict Dutch labor laws on your behalf. An EOR handles all termination aspects, including getting permissions from the UWV or cantonal court or setting up mutual settlement agreements. 

Payroll and taxes in the Netherlands

The Netherlands has a comprehensive social security system funded by contributions from both employers and employees. A Netherlands employer of record manages all payroll deductions and contributions, so you don’t have to.

Income tax is progressive, so it depends on how much you earn. For 2025, the tax rates applicable to work income are:

  • 36.97% on income up to EUR 75,518

  • 49.50% on income above EUR 75,518

A Netherlands EOR handles your payroll management. This includes calculations of employee salaries, bonuses, and commissions, alongside all withholdings, such as income tax and social security contributions. 

Choosing the right EOR in the Netherlands

When selecting an employer of record in the Netherlands, consider the following: 

  • Compliance expertise: Your EOR should have a deep understanding of Dutch labor laws, including the Working Hours Act, tax regulations, CBAs, and social security contributions. Look for a partner with a team of local HR and legal experts to help you proactively manage regulatory changes.

  • Comprehensive offering: The right partner offers a range of global employment products and EOR solutions. G-P EOR gives you everything you need to manage the full employee lifecycle, from payroll and benefits administration to expense management and offboarding.

  • Local support and cultural understanding: Access to in-country experts is essential. This ensures you get fast, accurate advice and that any challenges are resolved in compliance with Dutch regulations.

  • Technological capabilities: An EOR that uses AI technology like G-P can streamline onboarding, management, and payment processes. This ensures secure and efficient management of employee data, payroll, and compliance.

  • Transparent costs: You need a clear understanding of the EOR's pricing model. Look for transparent costs to accurately budget for your global hiring initiatives.

  • Reputation and industry leadership: Research the EOR's reputation in the market. G-P is the recognized leader in global employment and is the #1 EOR according to all industry analyst reports. Customer testimonials and case studies are also important when choosing an EOR.

  • Scalability and flexibility: The EOR should support your current needs and future growth. Their tech and solutions should be scalable to match your expansion goals, whether you're hiring one employee or an entire team.

Use G-P EOR for global hiring in the Netherlands

G-P EOR is the award-winning, AI-enabled global hiring solution that empowersstartups,SMBs, andenterprise businesses to build global teams. Onboard, manage, and pay top talent in over 180 countries in minutes, without the complexity of entity setup. 

G-P EOR is thepreferred partner for leading HCM, PEO, and payroll platforms. Bring your workforce data together in one place to maintain existing workflows while keeping consistent and accurate data across your integrated systems.


Request a proposal to start hiring in the Netherlands today.