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The Netherlands, renowned for its open economy and strategic location in Europe, presents vast opportunities for international businesses. However, effectively navigating the Dutch regulatory environment, including labor laws and tax regulations, can be challenging. This is where an Employer of Record (EOR) in the Netherlands can be invaluable, acting as your local partner to ensure a seamless market entry and ongoing compliance with all necessary regulations.
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The administrative requirements for incorporating a new or separate legal entity in the Netherlands are numerous and complex. Well-developed regulatory systems mean companies wishing to begin in the market need to be aware of how to remain compliant with labor standards at all times.
The processes involved in setting up a company can mean thousands of euros in fees or overheads and months of work.
However, working with a local EOR (Employer of Record) services provider can prevent these complications. A EOR allows you and your employees to get to work in a fraction of the time and cost.
A EOR:
The Advantage in Figures
PEO/EOR
Company Incorporation
Price
80% Less Expensive
Market Entry
2-5 Days
6 Months
World-Class Setup
An EOR simplifies the complexities of the Dutch tax system and labor laws, ensuring your business is compliant from the outset.
Compliance Assurance Expertise
Dutch regulations can be complex, but EORs possess the expertise and experience to keep your business compliant with local tax laws, labor regulations, and social security contributions.
Liability Minimization
Acting as your legal employer in the Netherlands, an EOR mitigates the risks associated with employment regulations and ensures adherence to all compliance requirements.
Business-Focused Support
Delegating HR tasks such as recruitment, payroll processing, and tax management to your EOR allows you to concentrate on core business activities.
Cost Structures
EOR services are often more economical than setting up a local subsidiary, especially for smaller teams or temporary projects. They help you avoid initial incorporation costs and ongoing administrative burdens like hiring in-house HR staff.
INS Global offers a solution following these 4 simple steps:
1
We will meet with you to go over the project’s scope and confirm your requirements. We then devise a strategy together based on how we can help and take care of the needs of your business.
2
We provide an entity in the Netherlands through which your employees can be hired and managed.
3
Your employees are brought onboard through our Netherlands EOR, and we ensure their complete compliance with every relevant regulatory procedure.
4
You and your employees can continue operations as usual while we take care of the rest.
When considering a partnership with a PEO in the Netherlands, you will likely also hear the term EOR (Employer of Record). Typically, the two terms are largely interchangeable based on the kind of services they offer. The main difference between the two is the level of liability taken on by the PEO/EOR and the parties involved in the agreement.
In the Netherlands both services are indistinct according to national regulations, but INS Global can offer any elements of both according to your requirements
Check Our The Netherlands Labor Law Guide
According to labor law in the Netherlands, an employee cannot be given a fixed period contract more than 3 times in a row.
If either the duration of the contracts or the number of fixed contracts concluded exceeds the statutory limit of 2 years, the contract of employment automatically becomes an indefinite contract
If a contract is for a period of under 2 years, the probation period cannot be longer than 1 month.
Working Hours
Probation Period
The maximum probation period in the Netherlands is set at 2 months, and if an employee is contracted for a period of fewer than 6 months, an employer cannot require any probation period.
Holidays and Annual Leave
Employees in the Netherlands are eligible for annual leave equivalent to 4 times their standard weekly working amount. For an employee working 5 full days per week, this means they would be entitled to 20 days of annual paid leave.
While the Netherlands observes 11 days of public holidays per year, employers are not obliged to give employees time off on these days. Mandatory leave on these days should be agreed upon in your contract with your employee or may be specified in the collective labor agreement for your sector.
Sick Leave
Employees in the Netherlands may be eligible for up to 2 years of paid sick leave with proof of inability to work. The pay received during this time is a minimum of 70% standard salary. This is paid by the employer, and after the 2 year period, payments cease, with the employee being transferred to long-term social insurance benefits.
Parental Leave
Maternity leave in the Netherlands is mandatory for 4 weeks before the expected due date and 12 weeks after the birth of a child.
This leave is paid at 100% standard salary up to a maximum threshold paid by the government. However, it is common practice for employers to make up the extra in the event that this maximum amount does not provide 100% of an employee’s salary.
Paternity leave is 1 week fully paid, and 5 weeks paid at 70% standard salary.
As of 2022, parents in the Netherlands can also apply for 9 weeks of partially paid parental leave during the first year of a child’s life, and unpaid leave during the first 8 years of their life.
Earned income in the Netherlands is taxed in 3 separate ways, called “Boxes”
Box 1:
Box 2:
Box 3:
Employers are expected to arrange social security contributions for employees towards health insurance, unemployment insurance, and national insurance. These amounts to an employer’s contributions of around 18% of their employee’s standard salary (some of these costs having been lowered in 2021).
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faqs
An EOR handles all legal, HR, and compliance tasks, ensuring your business adheres to the Netherlands’ labor and tax regulations, providing peace of mind.
Using an EOR in the Netherlands can be more cost-effective than setting up a local subsidiary, eliminating initial incorporation costs and reducing ongoing administrative expenses.
Yes, a Dutch EOR manages the entire visa and work permit application process, ensuring compliance with local immigration laws and regulations.
Industries such as logistics, technology, and finance benefit significantly from EOR services in the Netherlands due to the specialized knowledge required for compliance.
EORs have local experts who stay updated on regulatory changes, managing all compliance aspects to ensure your business adheres to Dutch tax laws.
While the EOR is the legal employer, you retain significant control over day-to-day management and operational decisions regarding your employees.
A Global Employer of Record is an effective solutions for companies like yours that are looking to expand a workforce abroad effortlessly.
This approach allows you to outsource the international hiring process quickly and efficiency, providing access to a global talent pool while still managing payroll compliance in each country.
Public Holidays Calendar
Netherlands
| Date | Day | Holiday | Notes |
| January 1 | Wednesday | New Year’s Day | Celebration of the beginning of the Gregorian calendar year |
| April 18 | Friday | Good Friday | Christian holiday commemorating the crucifixion of Jesus Christ; observed by public sector and banks |
| April 20 | Sunday | Easter Sunday | Christian holiday celebrating the resurrection of Jesus Christ |
| April 21 | Monday | Easter Monday | Day following Easter Sunday; public holiday |
| April 26 | Saturday | King’s Day | Celebration of the King’s birthday; observed on April 26 in 2025 as April 27 falls on a Sunday |
| May 5 | Monday | Liberation Day | Commemorates the end of Nazi occupation during WWII; public holiday every five years, including 2025 |
| May 29 | Thursday | Ascension Day | Christian holiday commemorating the ascension of Jesus into heaven |
| June 8 | Sunday | Whit Sunday | Christian holiday commemorating the descent of the Holy Spirit upon the Apostles |
| June 9 | Monday | Whit Monday | Day following Whit Sunday; public holiday |
| December 25 | Thursday | Christmas Day | Christian holiday celebrating the birth of Jesus Christ |
| December 26 | Friday | Boxing Day | Also known as Second Christmas Day; continuation of Christmas celebrations |
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