What does holiday allowance mean in the Netherlands?

Every employee is entitled to holiday allowance of at least 8% of annual gross salary on top of regular pay. Most employers pay it once a year in May or June, though some spread it monthly. Build it into salary offers, because it adds 8% to annual cost.

How long can a probation period be in the Netherlands?

For permanent contracts and fixed-term contracts over 2 years, probation can last up to 2 months. For contracts between 6 months and 2 years, the limit is 1 month. Contracts of 6 months or less can’t include probation, and the clause must be in writing.

Can Good Balance Global hire in the Netherlands for my company?

Yes. As your Employer of Record (EOR), we become the legal employer and file the monthly payroll tax return with the Belastingdienst. We also manage sick-leave obligations, holiday allowance, and any applicable CAO. You direct the work and pay one monthly invoice.

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Payroll and benefits guide

Netherlands

CapitalAmsterdam

Fiscal Year1 January - 31 December

Date Formatdd/mm/yyyy

CurrencyEUR (Euro)

Payroll FrequencyMonthly

Employer Taxes15.61% – 21.97% + Whk

Employee Costs27.65%

Overview

Languages: Dutch
Income tax: 35.75% – 49.5%
VAT: 21%; Reduced rates: 9%. Accommodation moved from 9% to 21% in 2026

Contributions

Employer

2.74% – 7.74%

Unemployment insurance (AWf)2.74% for permanent contracts, 7.74% for flexible contracts; on pay up to EUR 79,409/year (2026)

6.27% – 7.63%

Disability insurance (Aof)6.27% for small employers, 7.63% for others; same annual cap

0.50%

Childcare surchargeAdded to the Aof premium

6.10%

Health insurance levy (Zvw)Employer levy on pay up to EUR 79,409/year (2026)

Varies

Return-to-work fund (Whk)Sector- or employer-specific rate set by the Tax Administration each year

15.61% – 21.97% + Whk

Total employer cost

Employee

27.65%

National insurance (AOW 17.90%, Anw 0.10%, Wlz 9.65%)On the first EUR 38,883 of income (2026); collected with wage tax as a combined 35.75% first-bracket rate

27.65%

Total employee cost

Authority Payments

Authority PaymentPaid ToDue DateMethod

Authority Payment

Netherlands Tax Administration (Belastingdienst)

Paid To

Wage tax and national insurance withheld from wages

Due Date

End of the month following the pay period

Method

Monthly payroll tax return (loonaangifte) and bank transfer

Authority Payment

Netherlands Tax Administration (Belastingdienst)

Paid To

Employee insurance premiums (AWf, Aof, Whk) and Zvw levy

Due Date

End of the month following the pay period

Method

Included in the same payroll tax return

Minimum Wage & Working Hours

Minimum wage: EUR 14.99 / Hourly; Age 21+, effective 1 July 2026 (EUR 14.71 from 1 January 2026). Lower youth rates apply under 21
Standard working hours: 36–40 hours per week, set by contract or collective agreement (CAO); Legal maximum of 12 hours per day and 60 per week, averaging no more than 48 per week over 16 weeks
Overtime: No statutory overtime premium; pay or time off depends on the contract or CAO

Leave

Annual leave4 times the weekly working hours (20 days for full-time)Holiday allowance of at least 8% of annual salary is also mandatory
Sick leaveUp to 104 weeksThe employer pays at least 70% of salary, and at least the minimum wage in year 1
Maternity leave16 weeksPregnancy and maternity leave combined, paid at 100% (up to a daily maximum) by the UWV
Paternity leave1 week plus up to 5 weeks of additional birth leaveThe first week is paid at 100% by the employer and taken within 4 weeks of birth. Additional leave is taken within 6 months and paid by the UWV at 70% of daily wages, up to 70% of the maximum daily wage
Parental leave26 times the weekly working hoursCan be used until the child turns 8; 9 weeks are paid at 70% by the UWV if taken in the child’s first year
Public holidaysSet by contract or CAOPaid time off on public holidays is not required by law, but most contracts and CAOs grant it

Leave type	Duration	Notes
Annual leave	4 times the weekly working hours (20 days for full-time)	Holiday allowance of at least 8% of annual salary is also mandatory
Sick leave	Up to 104 weeks	The employer pays at least 70% of salary, and at least the minimum wage in year 1
Maternity leave	16 weeks	Pregnancy and maternity leave combined, paid at 100% (up to a daily maximum) by the UWV
Paternity leave	1 week plus up to 5 weeks of additional birth leave	The first week is paid at 100% by the employer and taken within 4 weeks of birth. Additional leave is taken within 6 months and paid by the UWV at 70% of daily wages, up to 70% of the maximum daily wage
Parental leave	26 times the weekly working hours	Can be used until the child turns 8; 9 weeks are paid at 70% by the UWV if taken in the child’s first year
Public holidays	Set by contract or CAO	Paid time off on public holidays is not required by law, but most contracts and CAOs grant it

Termination

Probation period: None for contracts of 6 months or less; up to 1 month for contracts up to 2 years; up to 2 months for permanent contracts
Notice period: Employer: 1 month (under 5 years of service), 2 months (5–10 years), 3 months (10–15 years), 4 months (15+ years). Employee: 1 month
Severance pay: Statutory transition payment of 1/3 of monthly salary per year of service, capped at an indexed annual maximum
13th salary: Not mandatory; the 8% holiday allowance is mandatory and usually paid in May or June
Notes: Dismissal requires UWV approval, a court decision, or a mutual settlement agreement

Benefits

Holiday allowanceMandatory
At least 8% of annual gross salary
Pension schemeCommon
Required in many sectors through industry-wide pension funds
Travel allowanceCommon
Tax-free commuting allowance within set limits

Visas & Work Permits

Highly Skilled Migrant permit
Requirements
Job offer from an IND-recognized sponsor and an age-based minimum salary
Processed by the Immigration and Naturalisation Service (IND)
EU Blue Card
Requirements
Higher education or relevant experience and a qualifying salary
Intra-corporate transfer (ICT) permit
Requirements
Transfer from a group company outside the EU as a manager, specialist, or trainee

FAQ

Sources

Last updated: November 1, 2026

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