Payroll
/
Netherlands
Global coverage
Available in +150 countries
Employer costs, taxes, minimum wage and leave rules for hiring here, plus the faster route: hire a contractor with Ontop, no local entity needed.
2026
Currency
EUR € (Euro)
Employer contributions
~12.86% AOW + 5.49% WW + health ~6.68% = ~27% (varies)
Minimum wage
€2,069.40 EUR (gross/month, 2026)
Payment frequency
Monthly
Calendar year (Jan 1 to Dec 31)
Capital
Amsterdam
Timezone
CET (GMT+1)
Employee or contractor
If the work is project-based or you need to move fast, a contractor gets you the same talent with a fraction of the paperwork.
Employee
~€6,350 EUR total
/month
For a gross salary of
€5,000 EUR gross/month
Setup
Local entity or employer of record, plus tax and social security registration
Employer contributions
~12.86% AOW + 5.49% WW + health ~6.68% = ~27% (varies)
Mandatory extras
Vakantiegeld (Holiday Allowance)
Monthly admin
Month-end payroll → Loonaangifte to Belastingdienst → vakantiegeld in May
Contractor with Ontop
No local entity
$49
/contractor/month
The agreed rate, plus Ontop from $49 per contractor per month.
Sign a contract, yours or an Ontop template. No local registration on your side.
No employer contributions: the contractor handles their own taxes and social security.
One payment per invoice, in one payroll run.
Paid into their Ontop Global Account in USD.
See the full side-by-side comparison
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A contractor's rate usually covers their own taxes, so compare total cost, not just gross pay. Run your numbers in the contractor vs employee calculator.
Hiring here: the full breakdown
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Payroll guide
Employer costs come on top of gross pay. Use these figures to budget a hire and to compare it with a contractor rate.
Total monthly cost
~€6,350 EUR total
Example gross salary
€5,000 EUR gross/month
~€2,950 EUR net
Net pay to the employee
Tax and employee contributions
Withheld from gross pay
~€1,350 EUR
Employer contributions on that salary
Employer contributions
~12.86% AOW + 5.49% WW + health ~6.68% = ~27% (varies)
Employee contributions
~27.65% Box 1 on social contributions + income tax
Total cost above gross
~30-32% above gross
Figures are estimates for planning. Rates change with each budget and can vary by sector, so confirm them before you make an offer.
What people earn here, from the legal floor to the main cities, plus the extra pay most employers budget for.
National average
~€4,000 EUR
Per month
Amsterdam
€5,000 - €7,000 EUR
~25%
Rotterdam
€4,000 - €5,500 EUR
~10%
Monthly gross. National average salary per year:
~€48,000 EUR
Minimum wage
€2,069.40 EUR (gross/month, 2026)
Paid:
Monthly
Extra pay
Vakantiegeld (Holiday Allowance)
8% of annual gross salary, mandatory
May/June
Collective agreements can set sector minimums above the national one. Check whether one applies to the role before you set the salary. Next step: estimate the full cost of an employee.
Who collects what, how often, and what happens when a payment is late.
Income tax brackets
9.32% (up to €38,441) → 49.5% (above €38,441); includes national insurance
Tax year:
Calendar year (Jan 1 to Dec 31)
Filing calendar
Monthly by end of month
Social security payments
May 1 (previous year return)
Income tax
By February 1
Employee tax certificate
Jaaropgave
May 1 (April 1 if requesting refund)
Annual return
Belastingaangifte
Late payment penalties
Late wage tax: 3% interest + up to €5,278 penalty; SS late: 3% + fine
Who collects what
Belastingdienst
Tax collection and income tax
UWV
Unemployment and disability benefits
Nederlandse Arbeidsinspectie
Labor law enforcement
The time off and paid leave every employee is entitled to by law. Budget for it when you compare an employee with a contractor.
Annual leave
Vakantiedagen
20 days minimum (25 typical)
Public holidays
11 public holidays
Sick leave
Ziektewet / Loondoorbetaling
100% first 52 weeks (employer), 70% second 52 weeks
Maternity leave
16 weeks
100% (IOAW benefit)
The contracts you can use, and what ending an employment relationship costs.
Permanent
Arbeidsovereenkomst voor onbepaalde tijd
Fixed term
Arbeidsovereenkomst voor bepaalde tijd
Independent contractor
Zzp'er / Freelancer
Collective agreements
CAO (Collectieve Arbeidsovereenkomst)
Ending employment
Transitievergoeding
How it is calculated
1/3 month per year of service
Calling someone a contractor does not make them one. If the role works like employment in practice, local authorities can reclassify it, with back contributions and penalties.
The errors that most often trigger back payments and penalties here, and what to do instead.
Zzp'er (Self-Employed) Misclassification
Risk Level: HIGH
The Dutch Tax Authority (Belastingdienst) has intensified enforcement of bogus self-employment since 2025. If a freelancer works under supervision, uses company tools, and works exclusively for one client, labor courts reclassify them as employees. Employers face back-payment of payroll taxes, WAO/WIA premiums, and holiday allowance for years.
30% Ruling Misapplication
Risk Level: MEDIUM
The 30% ruling allows qualifying expat employees to receive 30% of gross salary tax-free. Common errors include applying it after the 5-year maximum, applying to ineligible employees, or failing to request renewal. The Belastingdienst reclaims all incorrectly withheld amounts.
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Next topicOntop is the Global Workforce Engine for contractor teams: contracts, compliance documents and payments in 150+ countries.
150+
countries
$49
per contractor per month
1 run
to pay your whole team
USD
Global Account for every contractor
FAQ
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Ontop works with contractors, not employees. As Contractor of Record, Ontop handles contracts, compliance documents and payments for contractors in 150+ countries. To employ someone, you need a local entity or an employer of record. Ontop doesn't act as your employer of record.
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Employers pay contributions on top of gross salary. The cost table on this page shows the rates that apply here and a worked monthly example. A contractor with Ontop costs the agreed rate plus Ontop from $49 per contractor per month.
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Many countries require an extra month or an annual bonus for employees. The salaries section on this page shows the one that applies here and when it is usually paid. Contractors are paid what you agree in the contract.
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Employers withhold income tax and the employee's social security share every pay run, then pay them to the local authorities. The taxes section on this page lists the brackets, rates and filing deadlines that apply here.
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Yes. The contractor vs employee calculator compares the full cost of an employee, employer contributions included, with a contractor rate plus Ontop's monthly fee.
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When the work is project-based, you need to start fast or you don't have a local entity. If the person will work fixed hours, under your direction and only for you, local law may treat them as an employee, so hire them as one.
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Misclassifying employees as contractors, missing tax and social security deadlines, and ignoring collective agreements that set higher wage floors. The mistakes section on this page covers the ones that come up most often here.
Compare employer costs, taxes and contractor rules in nearby countries:
Ready to hire? See Ontop pricing or learn how to build a global team without an employer of record.
Ready to hire? See Ontop pricing or learn how to build a global team without an employer of record.