Hiring in the Netherlands
Fronted can employ your people in the Netherlands through our own Dutch entity, or set up and run your own Dutch company (BV) when you want one. Either way, contracts, payroll, employee insurances and reporting follow Dutch law, and you have one dedicated contact who knows your team.
- Updated 11/9/2026
- Reviewed by an employment law specialist
- Based on official the Netherlands sources
NetherlandsKey facts
Hiring in the Netherlands at a glance
Facts last checked 11/9/2026
- Currency
- EUR
- Employer contributions
- 17.13%
- Pay frequency
- Monthly
- Notice period
- Employer notice on a permanent contract depends on length of service: 1 month under 5 years, 2 months for 5-10 years, 3 months for 10-15 years and 4 months after 15 years. Employee notice is 1 month by default.
- Probation
- No probation on temporary contracts of up to 6 months. Up to 1 month on contracts longer than 6 months but under 2 years. Up to 2 months on permanent contracts or temporary contracts of 2 years or more. Must be agreed in writing.
- Holiday
- Statutory paid leave plus a statutory holiday allowance. Extra days are set by the collective agreement (cao) or contract. There is no statutory right to public holidays off; the cao or contract decides.
- Parental leave
- Pregnancy and maternity leave of at least 16 weeks, at least 10 of them after the birth, paid by UWV up to the maximum daily wage. Partner and parental leave also apply.
- Collective agreements
- A collective agreement (cao) binds its members, and the minister can declare it generally binding for a whole sector. Whether a cao applies depends on the sector of the role.
- Work permits
- Non-EU hires usually go through the highly skilled migrant route, which needs an IND-recognised sponsor and a minimum salary (2026: €5,942 gross per month from age 30, €4,357 under 30, excluding holiday allowance). The legal decision period is 90 days.
Ways to hire
Ways to hire in the Netherlands
Each route suits a different situation. None of them is a stopgap - many companies employ in the Netherlands through an EOR for years.
Employer of Record
- When it fits
- You want to hire one or more people in the Netherlands now, without setting up a Dutch company.
- Time to hire
- Days, not months, once you are ready. Non-EU hires need IND approval first.
- Cost
- €390 per employee/month, plus salary and statutory employer costs at cost.
Your own entity
- When it fits
- You are building a lasting team in the Netherlands and want your own BV.
- Time to hire
- A BV is created by notarial deed and registered with the KVK. The bank account, payroll tax and VAT registration add time before you can hire and invoice.
- Cost
- A one-off KVK registration fee of €85.15 plus notary costs, then ongoing accounting, payroll, annual accounts and corporate income tax filings.
Contractor
- When it fits
- The work is genuinely independent, project-based and the person runs their own business.
- Time to hire
- Quick to start, but the relationship must not look like employment.
- Cost
- The agreed fee. Since 2025 the Belastingdienst can assess back taxes when a contractor is in reality an employee.
How Fronted can help
Fronted employs your people in the Netherlands through our own Dutch entity, so you can hire without a local company. When you are ready for your own BV, we set it up and run it, including accounting and payroll. You and every employee get a dedicated contact who knows you.
Employer of Record in the Netherlands
Hire in the Netherlands without an entity. We employ your people and handle contracts, payroll and compliance.
Set up your entity in the Netherlands
When you want your own company in the Netherlands, we set it up and run it - including accounting and payroll.
Global contractor management
Hire and pay contractors compliantly anywhere in the world. We streamline onboarding, invoicing, and payments in one unified platform.
Employer costs
Employer costs in the Netherlands
The example assumes a permanent contract with a small employer and no pension scheme. Employer contributions cover unemployment insurance (AWf, 2.74%), disability insurance (Aof, 6.27%), the childcare surcharge (Wko, 0.50%), an average Whk rate of 1.52% and the Zvw health insurance levy (6.10%). In practice these are charged on salary including holiday allowance, up to €79,409 a year, and the Whk rate is set for each employer, so the real figure can differ slightly. A pension, if a sector fund applies, comes on top.
- Gross salary
- 5,000 EUR
- Employer contributions (17.13%)
- 857 EUR
- Holiday allowance (8%, accrued monthly)
- 400 EUR
- Total monthly employer cost
- 6,257 EUR
Employment contracts in the Netherlands
More than three temporary contracts, or more than three years in total, turns the next contract into a permanent one. A gap of more than six months breaks the chain. From 1 January 2028 a new law blocks a new temporary contract for three years after three temporary contracts. Probation must be agreed in writing and is not allowed on temporary contracts of up to six months.
Working hours
The Working Hours Act (Arbeidstijdenwet) limits shift length and weekly hours and sets minimum rest periods. There is no general legal rule on overtime pay; the contract or collective agreement decides.
Holiday
Employees get statutory paid leave and a holiday allowance, and the collective agreement or contract often adds more days. Public holidays in 2026 include New Year's Day, Good Friday, Easter, King's Day, Liberation Day, Ascension Day, Whitsun and Christmas, but the law gives no automatic right to a day off on them. The cao or contract decides.
Parental leave
Pregnancy and maternity leave lasts at least 16 weeks, with at least 10 after the birth. UWV pays a benefit of up to 100% of the daily wage, capped at the maximum daily wage. Dismissal is not allowed during pregnancy, the leave and the six weeks after it. Partner and parental leave also apply.
Notice and termination
Dismissal in the Netherlands needs a reasonable ground and usually permission from UWV or the subdistrict court, or a mutual settlement agreement. Employer notice runs from 1 to 4 months depending on length of service. Employees are entitled to a transition payment of one third of a monthly salary per year of service, capped at €102,000 or one annual salary if higher (2026).
Work permits
Non-EU hires usually come through the highly skilled migrant route, which needs an employer recognised as a sponsor by the IND. In 2026 the minimum gross monthly salary, excluding holiday allowance, is €5,942 from age 30, €4,357 under 30 and €3,122 for recent graduates. The legal decision period is 90 days.
Official sources
The official sources this guide is based on.
- Reviewed by
- Lars Smith, Head of Growth
- Updated
Planning your next country?
Tell us where and when. We will show you what it takes, whichever way you choose to hire.