The Netherlands is considered a European cultural epicenter, known for its design, fashion, and architecture. Whether residents live in one of the country's bustling cities or a picturesque country town, they enjoy work-life balance, a stable economy and government, and excellent public transportation.
About 90% of Dutch people speak English fluently, making the Netherlands a top choice for companies seeking full-time employees for remote work roles.
Key takeaways:
- The Netherlands is home to many skilled, educated, and tech-savvy residents seeking the ability to work from home for an international employer.
- Local labor laws provide strong worker protections, which create a committed remote workforce.
- It’s important for companies hiring Dutch workers to familiarize themselves with local labor laws governing everything from paid time off to terminations.
Advantages of Hiring in the Netherlands
The Netherlands is ranked as one of the most educated countries in the world. Popular fields of study include business and management, physical and life sciences, math, and computer science — ideal for companies looking to hire top talent from around the globe.
Here are some key details about the Netherlands:
- Language: Dutch
- Currency: Euro (EUR)
- Capital City: Amsterdam
- Population: 18.3 million
- Cost of Living Rank: 17th
An Innovative, Collaborative Workforce
In addition to high levels of English proficiency, many workers speak other languages, like German or French. The Netherlands also invests heavily in R&D and innovation.
It's easy for employees to travel throughout Europe due to its central location, and the country is the headquarters for many multinational companies. As a result, the Dutch are comfortable working in remote jobs and collaborating across borders.
Popular roles for remote workers in the Netherlands include:
- Software Engineer
- DevOps
- Copywriter
- Account Manager
- Multilingual Customer Support Representative
- Business Development Associate
- Project Management
- Account Executive
Employment Laws: Hiring Compliantly in the Netherlands
Employment Contracts
The Netherlands does not have at-will employment. All employees are offered employment contracts (arbeidscontract), either for a fixed term (a temporary contract) or indefinite (a permanent contract).
Fixed-term contracts cannot be renewed more than three times or for a term longer than three years.
Employment contract must include details such as:
- The role or nature of the work to be performed
- Working hours per day or week, including overtime details
- The salary and how and when the employee will be paid
- The length of the probationary period, if applicable
- Paid leave details
Working Hours & Pay
A typical workweek in the Netherlands is 36 to 40 hours. According to the Working Hours Act, employees can't work more than 12 hours per day or 60 hours per week (with a few exceptions).
The Dutch government adjusts the minimum wage twice yearly and posts minimum wage amounts on the government's website. As of January 2025, the minimum wage for people 21 and older is EUR 14.06/hour.
Employers must also pay an annual holiday allowance (vakantiegeld) equal to 8% of the employee's gross pay.
Many companies in the Netherlands also provide employees with a 13th-month payment, which is typically paid in November or December. This bonus is usually equal to 8.33% of the base salary.
Probationary Periods
Probationary periods, the time during which an employee can be dismissed without grounds, are tightly regulated.
A probationary period is not allowed for contracts of six months or less. For contracts exceeding six months, the probationary period is either one or two months, depending on the length and type of the contract.
Employer Taxes
In the Netherlands, employers must pay wage tax and contributions towards Social Security and health care insurance programs.
Many payroll taxes vary based on the employee’s salary, often come with monthly caps for employers, and typically add an additional 22% to 36% in employer costs on top of the employee's base pay.
Some of the Social Security programs include:
- Health insurance
- Unemployment insurance
- Child care premium
- Disability premiums
Termination Process & Severance Pay
Employees in the Netherlands cannot be dismissed without cause, and employers usually must obtain approval from the Employee Insurance Agency (Uitvoeringsinstituut Werknemersverzekeringen, UWV) or the subdistrict court before proceeding with termination.
Valid reasons for termination include:
- Misconduct
- Excessive absences
- Reorganization or company closure
To end an employee's contract, employers must provide notice ranging between one and four months, depending on the employee's tenure.
If you end an employee's contract, you must pay severance, also known as a transition payment (transitievergoeding), which is one-third of the employee's gross monthly wage per year worked, up to a maximum of one year's gross annual salary.
Paid Leave Laws in the Netherlands
Vacation and Holiday
Employees are entitled to 20 days of paid annual leave.
Employers are not required to give employees leave on public holidays, although many do, and this is typically outlined in the employee's contract. Some public holidays in the Netherlands include:
- New Year's Day
- Easter Sunday
- King's Day
- Liberation Day
- Christmas Day
- Boxing Day
Sick Leave
If an employee is sick, employers must pay 70% of the employee's wages for up to two years, although it's common for many companies to pay employees their full salary while they're out on sick leave.
Maternity Leave
Mothers are entitled to at least 16 weeks of pregnancy and maternity leave. Leave starts four to six weeks before the due date and continues for at least 10 weeks after the baby is born.
Employers continue paying the employee's salary during leave and will be reimbursed by the UWV.
Paternity Leave
Fathers/partners are entitled to one week of parental leave after the baby is born. The employee can take this leave any time during the first four weeks after the child is born, and the employer must pay employees their full salary.
Partners may also take five additional weeks during the first six months after the birth. Employers are paid by the UWV for this leave, covering 70% of the employee's salary.
Why Digital Nomads Love the Netherlands
The Netherlands doesn't offer a dedicated digital nomad visa, but visitors can stay for up to 90 days within a 180-day window. If you want to live and work there longer, options like the highly skilled migrant residence permit are available and valid for up to five years.
Amsterdam is often a top choice among nomads and new residents since it has a large expat community and cultural activities, although it has a very high cost of living.
Located just outside Amsterdam, Haarlem and Almere are more affordable. Families enjoy Rotterdam, Leiden, or Utrecht, which are smaller and have numerous parks and museums.
How to Pay Remote Workers in the Netherlands
To pay remote workers in the Netherlands, you have a few options:
- International bank transfers connect banks across borders but can be slow and costly.
- Digital payment services like PayPal or Wise can send international payments but have hefty fees, and both parties need the same type of payment account.
- Cryptocurrency is a nearly instant transfer and doesn't involve bank fees, but both parties need a crypto wallet.
Employers can also partner with an Employer of Record (EOR) in order to pay their Dutch employees. An EOR handles payment processing and any currency exchange for remote international workers while also ensuring compliance with local labor laws and taxes.
Hire in the Netherlands with RemoFirst
Rather than establishing your own legal entity in another country, you can partner with RemoFirst to act as the legal employer of global employees on your behalf. We'll handle all payroll and legal requirements (such as compliance with local labor laws) and functions like onboarding, shipping equipment, and managing employee benefits.
As an EOR, we can help you hire employees in the Netherlands and 185+ other countries. With RemoFirst, you can be confident that you're hiring and paying remote employees compliantly.
Schedule a demo today to learn more about RemoFirst.
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