The Netherlands has a population of more than 17 million people, with thriving food, agriculture, and energy industries. Many types of business entities can be created including partnerships, private companies, and sole proprietors. Companies must first register with the Chamber of Commerce before beginning operations.

The corporate tax rate varies by industry and type of company structure. Some labor and payroll considerations in the Netherlands:

  • Standard work hours are 36-40 per week
  • Employment details must be written and provided to the employee
  • Collective bargaining agreements are created at the national, industry, and company levels
  • Social security contributions are withheld from employee pay
  • New hires need to be locally registered
  • EU/EEA and Swiss nationals do not need a work permit, but other foreign nationals must have a residence permit and work permit to live and work in the Netherlands
  • Employers must prove they tried to find local, EU/EEA/Swiss talent before hiring foreign workers
  • Certain foreign workers are eligible to receive temporary tax break
  • In accordance with the labor laws in the Netherlands, payment for work missed due to illness is as follows:
    • The first year of sick leave, the employer pays at least 70% of the normal salary, with a minimum of the statutory minimum wage
    • The next year of sick leave, the employer pays at least 70% of the normal salary of the employee, without the minimum of the statutory minimum wage
    • After two years of sick leave, there is a compensation for the sick pay by the Dutch Government

Blue Marble has created cloud-based payroll technology to simplify operations in the Netherlands. Our customized reporting gives you real-time access to payroll costs across all countries and currencies, and our in-country experts are here to help when questions come up. To learn more or to get started, click here