Employer of record in the Netherlands: cost and rules (2026)

Employing someone in the Netherlands costs the employer about 25.9% on top of gross salary in statutory contributions and mandatory accruals (of which 9.3% is holiday allowance (vakantiegeld), accrued monthly and social contributions on the holiday allowance), plus an EOR fee of $199 to $699 per month at providers that publish prices ("from" prices). Example: a gross salary of EUR 5,000 per month costs EUR 6,295 per month (about $6,967) before any EOR fee.

Rates checked: 2026-11-14. On top of gross salary the employer pays unemployment, disability, health-insurance and childcare-levy contributions, plus a sickness-and-disability premium that depends on the employer. Employees are also owed a holiday allowance on top of salary, and social contributions apply to it too. All of these contributions stop above one annual earnings ceiling. Most employees also fall under a sector pension fund, which is not modelled. Estimates only, not advice: see the note at the bottom of the page.

Employer contributions in the Netherlands

Minimum wage: EUR 2,598 per month. The Netherlands has no fixed monthly minimum wage, only an hourly one: EUR 14.99 gross for workers aged 21 and over from 1 July 2026 (EUR 14.71 from 1 January to 30 June 2026). The monthly figure shown assumes a 40-hour week (14.99 x 40 x 52 / 12); it is lower for shorter contractual weeks. Younger workers have lower youth minimums. Source: Rijksoverheid, Bedragen minimumloon 2026

Worked example: EUR 5,000 gross per month

Contractor, EOR or own entity in the Netherlands

Contractor

Since 1 January 2025 the tax authority enforces the rules on false self-employment again. If a contractor in practice works like an employee, the company can be assessed for payroll taxes and social contributions and the person can be treated as an employee. A genuine contractor (a ZZP, sole trader) pays their own tax and social insurance and decides how and when to work. Source: Rijksoverheid, Aanpak schijnzelfstandigheid

Own entity

A private limited company (BV) is formed by a notarial deed and must be entered in the Trade Register. There is no minimum share capital: the old minimum was abolished in 2011. Before hiring staff you also need a Dutch payroll tax registration and a payroll administration. Source: Burgerlijk Wetboek Boek 2, wetten.overheid.nl

Leave, notice, probation and termination

Annual leave: 20 days. The legal minimum is four times the agreed working week: 20 days for a five-day week. Contracts and collective agreements often give more (25 or more).

Public holidays: 8. Article 3 of the Algemene termijnenwet lists eight general holidays: New Year's Day, Easter Monday, Ascension Day, Whit Monday, both Christmas days, King's Day and 5 May (paragraph 2 treats Good Friday alike for deadlines). Employers are not required by law to give paid time off on these days, and 5 May is usually a working day; it depends on the contract or collective agreement. Source: Burgerlijk Wetboek Boek 7, art. 634; Algemene termijnenwet, art. 3

Notice

The employee gives one month's notice. The employer's notice depends on service: 1 month under 5 years, 2 months from 5 to under 10 years, 3 months from 10 to under 15 years, 4 months from 15 years. Notice must end at the end of a calendar month unless agreed otherwise. A notice period can be extended in writing, but not shortened except by collective agreement. The employer needs UWV permission or a court order before ending an open-ended contract (art. 671a). Source: Burgerlijk Wetboek Boek 7, wetten.overheid.nl

Probation

A probation period must be agreed in writing and applies equally to both sides. Open-ended contract: up to 2 months. Fixed-term contract: none if it runs 6 months or less; up to 1 month if it runs over 6 months but under 2 years; up to 2 months if it runs 2 years or more. No probation is allowed in a follow-up contract with the same employer, unless the work is clearly different. Source: Burgerlijk Wetboek Boek 7, wetten.overheid.nl

Termination

When the employer ends the contract, the employee is owed a transition payment from the first day of work: one third of a month's pay for each year of service (pro rata for part years), capped at EUR 102,000 or one year's pay if that is higher (the cap is indexed each 1 January). Dismissal requires UWV permission (business reasons, long illness) or a court order (personal reasons), and the notice period applies. Source: Burgerlijk Wetboek Boek 7, wetten.overheid.nl

What the calculator simplifies

• Sector pension is not included. Many Dutch employees work in a sector with a mandatory pension fund, or have the employer's own scheme, and the employer usually pays a large share of the cost. The rate depends on the sector or scheme, so no figure is added here. Check the collective agreement for your sector.
• The return-to-work premium (Whk) is set per employer. We use the 2026 national average for the long-term disability part (0.96%). The Ziektewet part and the option to self-insure are not modelled.
• We use the lower disability-fund (Aof) rate that small employers pay. Larger employers pay 7.63% instead of 6.27%.
• We use the low unemployment rate, which requires a written open-ended contract. Fixed-term and on-call contracts pay 7.74% instead of 2.74%.
• All contributions share one yearly earnings ceiling that includes holiday allowance. To keep the calculation simple, the ceiling is applied to salary excluding holiday allowance (the ceiling divided by 1.08) and spread evenly over 12 months.
• Holiday allowance of 8% on all salary is used; the legal minimum is calculated on pay up to three times the minimum wage.
• Employee contributions (income tax and national insurance) are paid by the employee and are not employer costs. Collective agreements can add extra costs such as bonuses, travel allowances and extra leave.

EOR provider prices

Prices are "from" (starting) prices as shown on each provider's own page, usually per employee per month. What you pay can be higher and depends on country, headcount and contract length. Sorted by price, lowest first; providers that publish no price come last.

Affiliate disclosure: we may join providers' affiliate programmes, so links may become affiliate links. Right now the site has no affiliate links. Order is by published price; ties are listed alphabetically. Read the disclosure.

Calculator for the Netherlands

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FAQ

How much does it cost to employ someone in the Netherlands?

On top of gross salary, statutory contributions and mandatory accruals add about 25.9% (of which 9.3% is holiday allowance (vakantiegeld), accrued monthly and social contributions on the holiday allowance) at a gross salary of EUR 5,000 per month. That is a total of EUR 6,295 per month before any EOR fee.

How much does an employer of record cost in the Netherlands?

Providers that publish a price list charge $199 to $699 per month for EOR plans ("from" prices, checked 2026-11-14). This is on top of salary and the statutory employer costs above. Source

How much paid leave do employees get in the Netherlands?

Annual leave is 20 days, plus 8 public holidays. The legal minimum is four times the agreed working week: 20 days for a five-day week. Source

What is the notice period in the Netherlands?

The employee gives one month's notice. The employer's notice depends on service: 1 month under 5 years, 2 months from 5 to under 10 years, 3 months from 10 to under 15 years, 4 months from 15 years. Notice must end at the end of a calendar month unless agreed otherwise. A notice period can be extended in writing, but not shortened except by collective agreement. The employer needs UWV permission or a court order before ending an open-ended contract (art. 671a). Source

Is there a probation period in the Netherlands?

A probation period must be agreed in writing and applies equally to both sides. Open-ended contract: up to 2 months. Fixed-term contract: none if it runs 6 months or less; up to 1 month if it runs over 6 months but under 2 years; up to 2 months if it runs 2 years or more. No probation is allowed in a follow-up contract with the same employer, unless the work is clearly different. Source

What are the rules on ending employment in the Netherlands?

When the employer ends the contract, the employee is owed a transition payment from the first day of work: one third of a month's pay for each year of service (pro rata for part years), capped at EUR 102,000 or one year's pay if that is higher (the cap is indexed each 1 January). Dismissal requires UWV permission (business reasons, long illness) or a court order (personal reasons), and the notice period applies. Source

Sources

Rates checked: 2026-11-14.

• Rijksoverheid, Bedragen minimumloon 2026
• Regeling premiepercentages 2026, art. III-IV; Belastingdienst, Premiedifferentiatie WW
• Besluit gedifferentieerde premie Whk 2026; UWV, premies WGA en Ziektewet 2026
• Belastingdienst, Werkgeversheffing Zvw 2026; Regeling premiepercentages 2026
• Wet minimumloon en minimum­vakantie­bijslag, art. 15
• Burgerlijk Wetboek Boek 7, art. 634; Algemene termijnenwet, art. 3
• Rijksoverheid, Aanpak schijnzelfstandigheid
• Burgerlijk Wetboek Boek 2, wetten.overheid.nl