Employer of Record (EOR) in Netherlands
Employer of Record (EOR) in Netherlands helps global companies hire employees without establishing a Dutch entity. The Netherlands has a workforce of over 9.5 million people, well-regarded for their expertise in IT, engineering, logistics, and finance. Known for its business-friendly environment, highly educated workforce, and strong English proficiency, the country is a top choice for international hiring. However, employment laws in the Netherlands are detailed, covering collective bargaining agreements, taxation, and strict termination rules. EOR services simplify hiring, payroll, and compliance while enabling faster entry into the Dutch market.
About Netherlands
The Netherlands, located in Western Europe, is one of the most competitive economies in the world and a founding member of the European Union. It is known for its open economy, international trade, and innovation in technology, logistics, and finance. Amsterdam, Rotterdam, and The Hague serve as major hubs for global commerce and multinational headquarters.
The Dutch economy is export-driven, with strong sectors including agriculture, IT, logistics, life sciences, and energy. Its ports and airports provide critical gateways to European and global markets, making it a strategic choice for expansion.
The Netherlands also ranks highly in workforce quality, with employees well-trained, multilingual, and adaptable to international business cultures. English is widely spoken, reducing language barriers for foreign companies. While the country is business-friendly, compliance with Dutch employment laws, tax regulations, and employee protections is mandatory, which is why EOR solutions are a preferred choice for foreign employers.
Employment Terms and Regulations
Types of Contracts:
Permanent, fixed-term, on-call, and temporary agency contracts.
Working Hours:
Standard 40 hours per week, maximum 60 hours (with rest period rules).
Minimum Wage:
€1,995 per month (2023 full-time for workers over 21).
Probation Period:
Up to 2 months for permanent contracts, 1 month for fixed-term.
Taxation and Contributions
Employers contribute to social security, including pensions, unemployment, and health insurance. Contribution rates vary based on income levels and insurance schemes.
Types of Leave
Annual Leave:
Minimum 20 days per year (for full-time employees).
Sick Leave:
Employer pays at least 70% of wages for up to 2 years.
Maternity Leave:
16 weeks, paid through social security.
Paternity Leave:
1 week full pay plus up to 5 weeks at 70% pay.
Public Holidays:
Around 8 national holidays.
Employee Benefits
Mandatory health insurance, pensions, paid holiday allowance (8% of annual salary), and other sector-specific benefits.
Termination Process
Termination must follow strict rules, requiring approval from either the court or the Employee Insurance Agency (UWV). Severance pay applies if employees have worked for more than 24 months.
Employer Taxes
Employer contributions in the Netherlands are approximately 18%–20% of gross salary, depending on sector and benefits.
EMPLOYER TAXES
18%–20% (Estimated)
FAQ's
How STM Manages Employment in India
Establishing an entity in every hiring location can be cost-prohibitive. STM simplifies the process by employing and paying your Indian talent on your behalf. We handle the intricate HR procedures and employment contracts in compliance with local laws. You can conveniently approve invoices through our platform. By partnering with an Employer of Record (EOR), you can efficiently and compliantly hire top talent globally.
Payment Processes for Indian Employees
We streamline payroll management for your Indian workforce. Employee hours, leaves, holidays, bonuses, and commissions are meticulously calculated. STM invoices you around the 15th of each month in your preferred currency, including US Dollars (USD), Euros (EUR), British Pounds (GBP), Canadian Dollars (CAD), or Singapore Dollars (SGD). This ensures your Indian employees receive their salaries promptly in Indian Rupees (INR). Simplify further by consolidating your global team’s salaries into a single payment.
Full-time Employees vs. Global Contractors
Contractors engage with multiple companies and are self-employed, while full-time employees focus solely on their employer and receive additional benefits like health insurance, equity, and time off. While hiring international contractors can be cost-effective, it comes with misclassification risks. Partnering with an EOR for contractor onboarding and payments ensures compliant and timely compensation.
Reliable Employee Support
Our platform offers accessible support for employees and employers with inquiries about benefits, visas, and global employment in India. Utilize the chat function to connect with our expert team. Additionally, every STM client is assigned a dedicated account manager, serving as the primary contact for global HR assistance.
