Hire through a PEO in the Netherlands in 2026

Hire Globally, Pay Locally, Expand Effortlessly

Operating with a PEO in the Netherlands doesn’t always require going through all the challenges typically associated with hiring or managing overseas employees.

A PEO (Professional Employment Organization) is an alternative solution to incorporating an entity in a foreign market. A PEO can hire staff on your behalf and allow you to run your day-to-day activities without the red tape and regulatory concerns you may associate with expansion.

A PEO (Professional Employer Organization), like a global EOR (Employer of Record) provides crucial HR outsourcing services to companies seeking quick, safe, and cost-effective strategies for global mobility.

INS Global’s PEO in the Netherlands allows companies to hire compliance assured workers in as little as 48h.

As a third-party organization that takes on the responsibilities of an employer, an Employer of Record (EOR) in Netherlands provides companies with a cost-effective and simple solution for the complications of overseas hiring and employee management.

INS Global offers EOR services for companies looking to streamline the complexities of global mobility.

INS Global can be your local partner providing international PEO and EOR (Employer of Record) services to take care of HR concerns while you focus on driving growth in your business. With an active presence in more than 80 countries worldwide, we have the tools and experience to meet your requirements.

Why Choose A PEO Over Company Incorporation?

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 PEO or EOR (Employer of Record) services provider can prevent these complications. A PEO allows you and your employees to get to work in a fraction of the time and cost.

A PEO:

• Greater compliance assurance
• Minimized fees and setup time
• Access to expert support and guidance
• Streamlined company structuring

How Does a PEO in the Netherlands Work?

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 PEO, 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.

INS Global can provide a range of HR services outsourcing solutions to meet your needs and keep your operations running efficiently in the future. These can include payroll services outsourcing, international RPO (Recruitment Process Outsourcing), or contractor management.

What are the Differences Between a PEO and an EOR?

While the two terms are used to denote nominally similar services, the ways these services are provided differ in how they relate to the client and their employees.

• A PEO is a third-party company that organizes and manages HR services for a client’s employees.
• These services can include any or all areas of HR, such as payroll management, benefits or tax management, compliance assurance, or recruitment process outsourcing.
• An EOR can provide the same services as a PEO while also acting as the official and legal employer of the client’s staff. By legally hiring the employee on the client’s behalf, the EOR takes on all the responsibilities required to maintain compliance.

INS Global offers both PEO and EOR services in the Netherlands, ensuring that you have access to whichever option best meets your demands.

How are Dutch salaries and payroll organized?

The Netherlands has a relatively high rate of income tax on gross pay, which must be managed by the employer on behalf of their employees. Tax rates go as high as 52%. In addition, social security contributions are made by the employee (deducted from their salary by the employer) and the employer.

Labor Law in the Netherlands - 2024

Contracts in the Netherlands

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.

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.

Working hours in the Netherlands

The standard average working hours for a full-time employee in the Netherlands is 38 hours a week. However, many companies have their employees working between 36 – 40 hours a week as standard.

The maximum working hours allowed per day are 12 hours per shift or 60 hours per week. However, this limit is only available for brief periods, and employees may not work more than 55 hours a week for over 4 weeks.

Holidays in the Netherlands

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 Policy in the Netherlands

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.

Maternity and Paternity Leave in The Netherlands

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.

Tax Law and Social Security Payments in the Netherlands

Earned income in the Netherlands is taxed in 3 separate ways, called “Boxes”

Box 1:

• Employment Income
• Primary home ownership
• Periodic payments
• Income provision benefits

Box 2:

• Taxable income from substantial interest
• Flat rate: 26.9%

Box 3:

• Taxable income from Savings or Investments
• Flat rate: 31%

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).