A very stable economy, backed by a lot of foreign investment
With a growing number of job industries and expatriate workers, the Netherlands continues to go from strength to strength as a destination of choice for international businesses. The Netherlands is made of 12 provinces, is situated in northwestern Europe, and benefits from some of the lowest unemployment rates in Europe.
The Netherlands is a very stable economy and is backed by a lot of foreign investment. The country has competitive business tax rates and a highly educated population. When expanding into The Netherlands, it’s important to be familiar with the relevant employment legislations, a Netherlands PEO like Procorre Global can help to expedite and simplify the expansion process.
Working in The Netherlands
Dutch payroll law is often changing under the country’s employment legislation. For this reason, The Netherlands’ employment law is considered one of the most complex legislations in Europe for foreign businesses. Dutch lawmakers generally make changes to employment, payroll, and compliance legislation every 12 months.
For this reason, it’s exceptionally vital to work with a Netherlands PEO and global employment partner when undergoing the expansion process.
Employment Information
The Netherlands follows similar employment information to many of the other EU states. Working weeks are usually Monday to Friday, and 40 hours per week is common (usually with 8 hours working days).
Employees in the Netherlands are entitled to a minimum of 4 weeks’ paid holiday every year, a holiday bonus (of 8% of their usual salary), and at least 70% of their total earnings (up to 2 years), should they need to take sick leave.
In The Netherlands, new mothers are entitled to 16 weeks of fully paid maternity leave, while new fathers receive one week of full pay in paternity leave. Public holidays in the Netherlands include New Year’s Day, Easter Sunday, Monday and Good Friday, the King’s Birthday, Christmas, and more.
Contributions and Taxes
Both employers and employees in The Netherlands are required to pay social security contributions. Social security contributions can vary depending on the worker’s contract type and industry. Social security in The Netherlands is paid to contribute towards social welfare benefits, public insurance benefits and employee insurance benefits.
The tax system in The Netherlands is progressive and higher earners can expect higher taxation on their salaries (of up to 49.5%). For corporation tax, the rate is 19% of taxable income up to €200,000, above which the rate increases to 25%.
Expanding into The Netherlands
The Netherlands offers ‘the 30% Ruling’, which provides tax advantages for highly skilled foreign workers applying for in-demand roles in the country. Expats who qualify for this are able to take home a tax-free allowance of 30% of their gross salary.
Deciding whether an expat is eligible for the 30% ruling is usually down to a worker’s expertise, earnings, age, and education.
Understanding the ever-changing Dutch employment law can be a demanding challenge, and we suggest that foreign businesses utilise a Netherlands PEO / EOR and global advisor like Procorre Global when undertaking their global expansion.
Cultural Information
The Netherlands is one of the most secular countries in Europe, with only 39% of citizens aligning to a particular faith. Dutch (Nederlands) is the most commonly spoken language, but English is very widely spoken across the country.
With a famously friendly population, kindness and understanding goes far in The Netherlands. The business culture isn’t usually formal, but is always respectful and fair.
Impacts from COVID-19
The Netherlands has taken similar approaches to other European nations with regards to the COVID-19 pandemic. Most businesses have started undergoing remote and flexible working patterns, and much of this is set to continue beyond the pandemic.
The Dutch Market – Did you know?
- The Dutch are the most active population in Europe, so it’s no surprise that they also score highly in terms of overall health and happiness
- On average, Dutch men are the tallest in the world
- The Netherlands has always been a highly progressive country, and it was the first to legalise same-sex marriage (in April 2001)
- The Netherlands’ capital city of Amsterdam has over 1,200 bridges
Netherlands PEO Services
Netherlands PEO Services
With a growing number of job industries and expatriate workers, the Netherlands continues to go from strength to strength as a destination of choice for international businesses. The Netherlands is made of 12 provinces, is situated in northwestern Europe, and benefits from some of the lowest unemployment rates in Europe.
The Netherlands is a very stable economy and is backed by a lot of foreign investment. The country has competitive business tax rates and a highly educated population. When expanding into The Netherlands, it’s important to be familiar with the relevant employment legislations, a Netherlands PEO like Procorre Global can help to expedite and simplify the expansion process.
Working in The Netherlands
Dutch payroll law is often changing under the country’s employment legislation. For this reason, The Netherlands’ employment law is considered one of the most complex legislations in Europe for foreign businesses. Dutch lawmakers generally make changes to employment, payroll, and compliance legislation every 12 months.
For this reason, it’s exceptionally vital to work with a Netherlands PEO and global employment partner when undergoing the expansion process.
Employment Information
The Netherlands follows similar employment information to many of the other EU states. Working weeks are usually Monday to Friday, and 40 hours per week is common (usually with 8 hours working days).
Employees in the Netherlands are entitled to a minimum of 4 weeks’ paid holiday every year, a holiday bonus (of 8% of their usual salary), and at least 70% of their total earnings (up to 2 years), should they need to take sick leave.
In The Netherlands, new mothers are entitled to 16 weeks of fully paid maternity leave, while new fathers receive one week of full pay in paternity leave. Public holidays in the Netherlands include New Year’s Day, Easter Sunday, Monday and Good Friday, the King’s Birthday, Christmas, and more.
Contributions and Taxes
Both employers and employees in The Netherlands are required to pay social security contributions. Social security contributions can vary depending on the worker’s contract type and industry. Social security in The Netherlands is paid to contribute towards social welfare benefits, public insurance benefits and employee insurance benefits.
The tax system in The Netherlands is progressive and higher earners can expect higher taxation on their salaries (of up to 49.5%). For corporation tax, the rate is 19% of taxable income up to €200,000, above which the rate increases to 25%.
Expanding into The Netherlands
The Netherlands offers ‘the 30% Ruling’, which provides tax advantages for highly skilled foreign workers applying for in-demand roles in the country. Expats who qualify for this are able to take home a tax-free allowance of 30% of their gross salary.
Deciding whether an expat is eligible for the 30% ruling is usually down to a worker’s expertise, earnings, age, and education.
Understanding the ever-changing Dutch employment law can be a demanding challenge, and we suggest that foreign businesses utilise a Netherlands PEO / EOR and global advisor like Procorre Global when undertaking their global expansion.
Cultural Information
The Netherlands is one of the most secular countries in Europe, with only 39% of citizens aligning to a particular faith. Dutch (Nederlands) is the most commonly spoken language, but English is very widely spoken across the country.
With a famously friendly population, kindness and understanding goes far in The Netherlands. The business culture isn’t usually formal, but is always respectful and fair.
Impacts from COVID-19
The Netherlands has taken similar approaches to other European nations with regards to the COVID-19 pandemic. Most businesses have started undergoing remote and flexible working patterns, and much of this is set to continue beyond the pandemic.
The Dutch Market - Did you know?
- The Dutch are the most active population in Europe, so it’s no surprise that they also score highly in terms of overall health and happiness
- On average, Dutch men are the tallest in the world
- The Netherlands has always been a highly progressive country, and it was the first to legalise same-sex marriage (in April 2001)
- The Netherlands’ capital city of Amsterdam has over 1,200 bridges
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