~53.09%
Estimated employer cost
|
20 days
Statutory annual leave
|
Up to 2 months
Maximum probation period
|
Employer social costs
The estimated employer cost in the Netherlands is approximately 53.09% on
top of gross salary. The main components are set out in the table below.
|
Component
|
Notes
|
|
Occupational pension
|
Mandatory employer-only contribution of 15.2% in 2026 (15%
in 2025), payable from the employee's first day of
employment.
|
|
Sector fund premium
|
Contribution to the industry-specific sector fund; the
rate depends on the employer's sector classification.
|
|
General unemployment fund (Awf)
|
Mandatory contribution to the national unemployment
insurance scheme (WW).
|
|
Occupational disability fund (Aof/WIA)
|
Covers incapacity-for-work benefits under the Work and
Income according to Capacity for Work Act.
|
|
Return-to-work fund (Whk)
|
Funds reintegration of employees who become incapacitated
for work; the rate varies by employer size and sector risk
profile.
|
|
Redundancy payment fund
|
Contribution supporting statutory unemployment and
redundancy-related benefit payments.
|
|
Health insurance contribution (Zvw)
|
Employer-paid contribution toward the national healthcare
insurance scheme.
|
|
The 53.09% figure reflects the standard blended
employer cost, including the mandatory occupational
pension contribution. Exact contributions vary by
sector classification, company size, and individual
salary level, and several components are capped at the
annual wage ceiling (€79,409 in 2026). Danbro
International will confirm applicable rates during
client onboarding.
|
Included benefits
Dutch employment law imposes a number of mandatory benefits and
entitlements. These are included within the standard cost structure for all
employees on our payroll:
· Occupational pension contribution from the first day of employment
(employer-only, 15.2% in 2026)
· Holiday allowance (vakantiegeld) of at least 8% of annual gross
salary, typically paid out in May or accrued monthly
· Statutory minimum of 20 days paid annual leave (Danbro
International's standard contracts provide 25 days for full-time employees)
· Continued salary payment during illness, generally at a minimum of
70% of salary for up to 104 weeks
· Employer contribution toward national healthcare insurance
(Zorgverzekeringswet)
|
A tax-free homeworking allowance of up to €2.45 per
working-from-home day (2026 rate) may be applicable
depending on working arrangements. Applicability is
confirmed during onboarding.
|
Fixed-term contracts
Fixed-term contracts are permitted in the Netherlands, subject to the
following conditions:
· A maximum of three successive fixed-term contracts may be
concluded with the same employer.
· The total duration of successive fixed-term contracts may not
exceed three years.
· A break of more than six months between contracts resets the
chain, allowing a new sequence of fixed-term contracts (this interval may be
reduced by collective bargaining agreement for certain roles).
· Part-time working arrangements are permitted and must be captured
in writing in the employment contract.
|
Where the maximum number of contracts or the
three-year cap is exceeded, the final contract is
deemed to convert to an indefinite-term agreement by
operation of law.
|
Annual leave and public holidays
Employees in the Netherlands are entitled to a statutory minimum of 20 days
of paid annual leave per year for full-time work, prorated for part-time
contracts. Safeguard Global's standard contracts provide 25 days of annual
leave for full-time employees.
Employees also accrue statutory holiday allowance (vakantiegeld) of at least
8% of gross annual salary, typically paid out in May or accrued and paid
monthly depending on the employment contract.
Public holidays in the Netherlands in 2026 (7 days):
|
Date
|
Holiday
|
|
1 January 2026
|
New Year's Day
|
|
6 April 2026
|
Easter Monday
|
|
27 April 2026
|
King's Day
|
|
14 May 2026
|
Ascension Day
|
|
25 May 2026
|
Whit Monday
|
|
25 December 2026
|
Christmas Day
|
|
26 December 2026
|
Second Christmas Day (Boxing Day)
|
|
Good Friday and Liberation Day (5 May) are observed by
some employers and sector collective bargaining
agreements but are not universally mandatory
non-working days; applicability is confirmed at the
contract level. Unlike some neighbouring markets, no
replacement day off is generally granted where a
public holiday falls on a weekend.
|
Probation period
Probation periods in the Netherlands are permitted but capped according to
the type and length of the employment contract:
· No probation period is permitted for fixed-term contracts of less
than six months.
· A maximum of one month's probation is permitted for fixed-term
contracts of six months to two years.
· A maximum of two months' probation is permitted for fixed-term
contracts of two years or more, and for indefinite-term contracts.
|
A probation clause must be agreed in writing and apply
equally to both parties. It is void if it does not
meet the statutory conditions above.
|
Notice periods
The statutory notice period for employer-initiated termination in the
Netherlands is determined by the employee's length of service:
· Less than 5 years of service: 1 calendar month
· 5 to less than 10 years of service: 2 calendar months
· 10 to less than 15 years of service: 3 calendar months
· 15 years of service or more: 4 calendar months
Employee resignation notice is one calendar month by default, unless the
employment contract specifies a different period. Where extended
contractually, the employee's notice period may not exceed six months and
may not be longer than the employer's notice period.
|
Notice periods are governed by Article 7:672 of the
Dutch Civil Code. Danbro International will confirm
the applicable notice period based on the employee's
specific service record prior to any termination action.
|
Termination
Employment in the Netherlands is generally ended in one of the following
ways:
· Mutual agreement (settlement agreement /
vaststellingsovereenkomst), which is the preferred route and is subject to a
mandatory 14-day reflection period during which the employee may withdraw.
· Dismissal via the UWV (Employee Insurance Agency), required for
termination on economic/business grounds or after long-term incapacity for
work exceeding two years.
· Dismissal via the cantonal court (kantonrechter), required for
termination on personal grounds such as underperformance or a disturbed
working relationship.
· Summary dismissal (ontslag op staande voet) for a serious and
urgent cause, without notice.
Employer-initiated dismissal in the Netherlands is subject to a closed
system of legally defined grounds and requires substantial documented
evidence.
|
Dismissal in the Netherlands carries meaningful
financial and reputational risk if not properly
managed. Danbro International strongly recommends
engaging with our in-country expertise at the earliest
stage of any contemplated termination to ensure
compliance and reduce exposure.
|
Termination entitlements
Employees whose employment is terminated (other than in specific excluded
circumstances) are generally entitled to a statutory transition payment
(transitievergoeding), calculated as one-third of the employee's monthly
gross salary for each year of service, including partial years. The
transition payment is capped at €102,000 (2026 figure; reviewed annually) or
one year's gross salary, whichever is lower.
The following apply in all termination scenarios:
· All accrued and unused annual leave must be paid out at
termination.
· Any accrued but unpaid holiday allowance is settled at the point
of departure.
· The transition payment generally does not apply where termination
is by mutual agreement outside the statutory route, for serious employee
misconduct, upon reaching state pension age, or in cases of company
bankruptcy.
|
Dutch termination entitlements, and the interaction
between the transition payment and any negotiated
settlement, can carry significant cost where service
periods are long. A full cost modelling exercise is
recommended before initiating any termination process.
|
Supplemental benefits
The following supplemental benefits can be arranged for employees in the
Netherlands as part of a competitive total compensation package. These
benefits represent an additional cost to the client:
· Supplementary private health and dental insurance (in addition to
the individually held statutory Zvw policy)
· Enhanced occupational pension contribution above the standard
employer rate
· Income protection / disability top-up insurance
· Commuting and mobility allowances (for example, public transport
or car scheme)
Immigration services
Danbro International supports immigration requirements for employees
relocating to the Netherlands. Immigration services are available as part of
our employer of record offering and represent an additional cost to the
client.
The Netherlands operates within the EU freedom of movement framework for EU,
EEA, and Swiss nationals. Non-EU nationals generally require a combined
residence and work permit, or a highly skilled migrant permit, issued by the
Immigration and Naturalisation Service (IND). Processing timelines and costs
vary depending on nationality, role type, and sponsor recognition status.
|
Immigration requirements in the Netherlands are
administered nationally by the IND, though processing
speed can depend on whether the sponsoring entity holds
recognised sponsor status. Please raise any immigration
needs with your Danbro International account team at
the earliest opportunity so that timelines and costs
can be confirmed.
|
Pay cycle
The standard pay cycle for employees in the Netherlands processed through
Danbro International is monthly. Salaries are paid on the last working day
of each month.
The 2026 payroll processing schedule is set out below. All deadlines are at
15:00 GMT.
|
Month
|
Changes due
|
Invoice client
|
Employee pay day
|
|
January
|
6 January 2026
|
19 January 2026
|
30 January 2026
|
|
February
|
4 February 2026
|
17 February 2026
|
27 February 2026
|
|
March
|
4 March 2026
|
17 March 2026
|
31 March 2026
|
|
April
|
7 April 2026
|
20 April 2026
|
30 April 2026
|
|
May
|
5 May 2026
|
19 May 2026
|
29 May 2026
|
|
June
|
5 June 2026
|
18 June 2026
|
30 June 2026
|
|
July
|
8 July 2026
|
21 July 2026
|
31 July 2026
|
|
August
|
6 August 2026
|
19 August 2026
|
31 August 2026
|
|
September
|
7 September 2026
|
18 September 2026
|
30 September 2026
|
|
October
|
6 October 2026
|
19 October 2026
|
30 October 2026
|
|
November
|
4 November 2026
|
17 November 2026
|
30 November 2026
|
|
December
|
7 December 2026
|
18 December 2026
|
31 December 2026
|
DISCLAIMER
This document is provided for informational purposes only and reflects
general market practice and applicable law as understood at the time of
publication. It does not constitute legal, tax, or compliance advice.
Employment law, tax legislation, and statutory rates in the Netherlands
are subject to change without notice, and obligations may vary depending
on sector, collective bargaining agreement, and individual
circumstances. Danbro International recommends that clients seek
independent legal counsel before making employment decisions. For
specific guidance, please contact your Danbro International account
team.
© 2026 Danbro International. All rights reserved.
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