Are you ready to hire in Netherlands?

The Dutch value work-life balance, and many businesses support flexible working arrangements and prioritize employee well-being. While the cost of living in the Netherlands can be high, salaries are competitive, ensuring that employees can maintain a good quality of life.

Dutch workers are known for their strong work ethics, professionalism, and commitment to their jobs which is beneficial when hiring in Netherlands.

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Minimum Wage

The minimum wage in the Netherlands for employees 21 years and over is currently € 1,934.40 per month.

Working Hours

Standard Working Hours

The workweek in the Netherlands is limited to a maximum of 45 hours, often structured as 40 hours spread over 5 days, with 8 hours per day being the common schedule. The standard work week is Monday – Friday.


When the prescribed work hours are exceeded, it is mandatory to provide overtime compensation. The maximum number of overtime hours is determined by the terms outlined in the employee’s collective agreement or employment contract.


In the Netherlands, the payroll frequency is monthly, with salaries paid on the last working day of the month.


Paid time off

All employees are entitled to a minimum of 20 days paid annual leave. However, sometimes companies offer 25 or 32 days of paid annual leave a year. 

Sick Pay

In case of employee illness, the employer is required to pay a minimum of 70% of their last earned wages plus holiday allowance for up to 2 years.

The specific percentage depends on the employment contract or collective labor agreement (CLA). Typically, it is standard practice to pay 100% of the full salary during the first year of illness and 70% during the second year. In the first year, if the 70% is less than the minimum wage, a supplement is provided up to the minimum wage amount, which was 1,995 Euros per month as of July 2023.

Maternity Leave

In the Netherlands, maternity leave is over a period 16 weeks and should commence between 4 to 6 weeks before the anticipated birth date. Throughout this maternity leave period, women employees are entitled to receive full wage compensation provided by the Employee Insurance Agency.

Paternity Leave

Fathers are entitled to receive 100.00% of the regular salary for 5 working days of paternity leave.


Termination of Employment

The process of ending employment depends on the specific terms outlined in the Employment Agreement and Collective Agreement, as well as the nature of the contract and the cause for termination.

Dutch labor law provides employees with strong protection against unjust dismissal. Employers must have valid reasons to terminate an employment contract. These reasons can include redundancy, poor performance, long-term illness, or misconduct.

Termination for economic reasons or prolonged disability cannot occur without involvement from the Employee Insurance Agency.

Notice Period

The notice period is dependent on the employees length of service with the company. For service less than 5 years, 1 months notice period is required. This can extend up to a maximum of 4 months notice with service of up to or more than 15 years.

Probation Period

The probation period in Netherlands is usually set within collective agreements and contracts. However, the typical probation period can vary between 2 – 6 months.


In the Netherlands, citizens from EU/EEA/Switzerland do not need to obtain formal residence or work permits. However, they are required to secure a residence permit if they intend to access social security benefits. On the other hand, individuals from countries outside the EU/EEA/Switzerland, such as the United States, Canada, Japan, Australia, New Zealand, and more, who plan to stay in the Netherlands for a period exceeding three months, must obtain an “authorization temporary stay” (MVV) prior to their arrival.

For those non-EU/EEA/Swiss nationals seeking employment in the Netherlands, a crucial step is the application for work permits, which must be submitted by their prospective employers to the Social Security Office (UWV). The application process entails demonstrating a genuine effort to consider and hire local or EU/EEA/Swiss candidates for the position in question. Notably, individuals are not permitted to commence work until the relevant work permit has been officially approved.


The standard rate of VAT in The Netherlands is 21.00%.

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