Employer of Record in the Netherlands: 2026 Cost and Compliance Guide

The Netherlands is a top European hub for international teams, with a highly English-proficient workforce and strong talent in Amsterdam, Rotterdam, Utrecht and Eindhoven. Employer premiums are moderate, at roughly 17–20% of gross up to a ceiling, but Dutch employment carries two costs that surprise many foreign employers: a mandatory 8% holiday allowance and an obligation to continue paying sick employees for up to two years.

An Employer of Record (EOR) lets you employ someone in the Netherlands under a Dutch contract without setting up a besloten vennootschap (BV). The EOR runs payroll, premiums and wage tax filings while you direct the work.

Dutch rules on supplying workers to other companies are also tightening. Under the Labour Provision Admission Act (Wet toelating terbeschikkingstelling van arbeidskrachten, Wtta), companies that supply workers will need official admission, with the regime currently scheduled to start on 1 January 2027 and enforcement from 2028. This guide covers costs, rules, provider comparison and when to set up a BV. Figures link to official sources. We do not test or use the providers listed; see our methodology.

An Employer of Record is a company with a Dutch entity that employs staff for foreign businesses. It issues the Dutch employment contract, registers as employer with the tax authority (Belastingdienst), withholds wage tax and national insurance contributions, pays employee insurance premiums, applies any collective labour agreement (CAO), pays the holiday allowance, and manages sickness absence and terminations under Dutch law.

Because the employee works under your direction while the EOR is the legal employer, Dutch law generally treats this as supplying workers (terbeschikkingstelling) under the Waadi. Providers must already register in the Dutch trade register as a labour supplier. Under the Wtta, they will also need admission from the new supervisory authority. Hirers are expected to check the public register, and fines can apply to hirers who use non-admitted suppliers.

In practice, ask each provider whether it is registered as a labour supplier in the Netherlands and how it is preparing for Wtta admission. Choose providers that can confirm both in writing.

Dutch employment cost has four layers: gross salary (12 monthly payments), the mandatory 8% holiday allowance, employer premiums (unemployment, disability, health and childcare, capped at the maximum premium wage) and the EOR fee.

Employer premiums apply only up to €79,409 of annual wages, so their share falls for senior salaries. The tables and estimator apply the cap. Pension contributions can be a significant extra cost if a mandatory sector pension fund applies.

Annual cost at example salaries

What these figures include and exclude

• 'Gross salary' here means 12 monthly payments excluding the 8% holiday allowance. Premiums are applied to that figure as a simplification; in real payroll they are also due on the holiday allowance, up to the cap.
• Employee insurance premiums apply up to the maximum premium wage of €79,409 a year (2026).
• Employees pay wage tax and national insurance contributions out of gross pay. These are not employer costs.
• Sick pay is a major contingent cost: employers must pay at least 70% of salary (often 100% in year one) for up to 104 weeks of illness, plus reintegration obligations. Ask your EOR how this is priced or passed through.
• Qualifying incoming employees may receive part of their salary tax-free under the expat ruling. The ruling is being reduced from 30% to 27% from 2027, and it reduces the employee's tax, not employer premiums.

Estimate your own cost

Enter a salary to see the estimated annual cost, including mandatory employer contributions and an EOR fee. Change the fee to match the quotes you receive.

Dutch employment law is protective, especially on dismissal and sickness. Many sectors have a collective labour agreement (CAO), some declared generally binding, which can set pay scales, hours, pension and extra payments.

Supplying workers (Waadi / Wtta)

Companies that make workers available to others must register as labour suppliers, and under the Wtta will need formal admission.[5]Verify

The Wtta is scheduled to take effect on 1 January 2027, with enforcement from 2028. Hirers must check the register and can be fined for using non-admitted suppliers.

Employment contracts

Fixed-term contracts are limited by the 'chain rule': at most three consecutive contracts within three years before an open-ended contract arises.[8]Verify

Probation period

No probation for contracts of 6 months or less; up to 1 month for longer fixed-term contracts under 2 years; up to 2 months for open-ended contracts.[8]Verify

Working time

No statutory standard week. Contracts commonly set 36–40 hours. Legal maximums are 12 hours a day and 60 hours a week, with lower averages over time.[7]Verify

Holiday allowance

At least 8% of annual gross salary, usually paid once a year in May or June.[3]Verify

Annual leave

At least four times the weekly working hours (20 days for a five-day week). 25 days is the market norm for professional roles.[7]Verify

Sick pay and reintegration

Employers must pay at least 70% of salary (and at least the minimum wage in year one) for up to 104 weeks of illness, and actively support reintegration.[6]Verify

Many CAOs and contracts require 100% in the first year. This is one of the biggest employer risks in the Netherlands.

Pension

Not mandatory in general, but compulsory if a mandatory sector pension fund covers the employer's activities.[4]Verify

Termination by the employer

Dismissal requires UWV permission (economic reasons or long-term illness), a court ruling (personal grounds), or a mutual settlement agreement.[6]Verify

Employees are entitled to a statutory transition payment of one third of monthly salary per year of service, subject to a cap. Most dismissals end in a settlement agreement (vaststellingsovereenkomst).

Notice periods

Employer notice is 1 month (under 5 years' service), rising to 4 months after 15 years. Employee notice is normally 1 month.[8]Verify

These EOR providers publish information about employing in the Netherlands. Prices are their own published starting rates in USD. The Netherlands is often quoted above the global starting rate.

For the Netherlands, ask about labour-supplier registration (Waadi), Wtta admission status and how sick-pay risk is handled. These three answers separate mature Dutch operations from thin ones.

For each provider's products, pricing model and fit signals, see the EOR provider directory.

The standard alternative is a besloten vennootschap (BV), the Dutch private limited company. Minimum share capital is just €0.01, but formation requires a notarial deed and registration with the Chamber of Commerce (KVK), followed by registration as an employer with the tax authority.

Ongoing costs include an accountant, payroll, annual financial statements filed with the KVK, corporate income tax returns (19% on the first €200,000 of profit, 25.8% above), a business address and banking. As a direct employer you also carry the sick-pay risk yourself, which many companies insure.

For a step-by-step version of this calculation, see EOR vs local entity: a break-even framework.

1. 1

   Define the role, salary and hoursDay 0

   Agree a monthly gross salary (excluding the 8% holiday allowance), contractual hours (often 36–40) and contract type. Remember the chain rule for fixed-term contracts.

2. 2

   Check CAO and pension obligations

   Ask the EOR whether a CAO or mandatory sector pension fund applies to the role. Either can significantly change total cost.

3. 3

   Compare itemised quotes and supplier status2–5 days

   Request Netherlands-specific quotes, plus each provider's Waadi registration and Wtta status. Ask how sick-pay risk is priced. Use the estimator to sanity-check totals.

4. 4

   Sign the service agreement

   Review sick-pay pass-through, settlement costs, IP assignment, data protection (GDPR) and transfer fees to a future BV.

5. 5

   Dutch contract and onboarding3–7 days

   The employee receives a Dutch-law contract and provides their citizen service number (BSN), ID and bank details. The EOR checks the right to work.

6. 6

   Payroll registration

   The EOR adds the employee to its Dutch payroll and wage tax returns, and arranges any applicable pension enrolment.

7. 7

   Payroll and ongoing administrationMonthly

   Monthly payroll with wage tax and premiums, the annual holiday allowance, leave records and sickness absence management.

Rates and rules on this page are based on the following official sources. Numbers in brackets in the tables above link to these entries.

1. 1
   Employee insurance premiums and employer levies (Handboek Loonheffingen)

   Belastingdienst

   Annual premium percentages (AWf, Aof, Whk, Zvw, Wko) and the maximum premium wage.

2. 2
   Minimum wage amounts

   Rijksoverheid (Government of the Netherlands)

   Statutory hourly minimum wage, adjusted every January and July.

3. 3
   Holiday allowance (vakantiegeld)

   Rijksoverheid (Government of the Netherlands)

   The statutory minimum 8% holiday allowance and leave entitlement.

4. 4
   Pensions and sector pension funds

   Rijksoverheid (Government of the Netherlands)

   When pension participation is compulsory.

5. 5
   Certificate for temporary employment agencies (Wtta)

   Business.gov.nl

   The new admission system for companies that supply workers, and its timeline.

6. 6
   Sickness, reintegration and dismissal permits

   UWV

   Employer obligations during illness and the UWV dismissal procedure.

7. 7
   Employing staff in the Netherlands

   Business.gov.nl

   Official guidance on working hours, leave, contracts and employer obligations.

8. 8
   Dutch Civil Code, Book 7, Title 10 (employment contracts)

   wetten.overheid.nl

   Statutory rules on contracts, probation, notice periods and the chain rule.

An Employer of Record is a fast, low-commitment way to hire in the Netherlands. Plan for a total of roughly 1.25–1.5× the 12-month gross salary including the 8% holiday allowance and the EOR fee, with more on top if a pension scheme applies.

Look beyond the headline fee: confirm each provider's labour-supplier registration and Wtta readiness, and understand how the two-year sick-pay obligation is handled.

For a growing Dutch team, compare the numbers against a BV using our EOR vs local entity guide, and see Germany for a neighbouring market.