Payroll in Netherlands

Dutch payroll is built around the pay period you agree in writing. The default is monthly, and the dossier records monthly as the standard payroll cycle. Weekly and four-weekly payment are also possible if the contract says so.

Payday and payslips

Pay follows the period worked. Any postponement of payment needs a contractual agreement, so do not assume you can pay late without one. The net minimum wage must be paid through a bank.

The dossier does not set out the legal content requirements for a Dutch payslip or a fixed payday date. Confirm the current payslip rules with the tax authority or your payroll adviser before the first pay run. As a working standard, show gross pay, each pay component, holiday allowance, income tax withheld and any pension deduction as separate lines.

Your employee's payday is one date. Your tax and contribution remittance dates are different. Keep them apart in your payroll calendar.

Holiday allowance and extra payments

There is no general statutory 13th-month or year-end bonus. A CAO (collective labour agreement) or the employment agreement can make one compulsory, so check both before you set up the pay structure.

Holiday allowance is separate. The usual statutory minimum is 8% of gross eligible pay, including overtime. It is distinct from paid holiday time and from any year-end bonus. A specific CAO arrangement, or a written agreement for earnings above 3 times the minimum wage, can change it.

Remitting tax and contributions

For 2026, Box 1 income tax for people aged 66 or younger has marginal bands of 35.75% through €38,883, 37.56% above that through €78,426, and 49.50% above €78,426. The first band already includes national insurance, so it is not an extra flat deduction on all salary. Credits, deductions and AOW status change the result.

On the employer side, the Zvw health levy is 6.10% in 2026, with maximum contribution income of €79,409. This is one payroll charge, not the total employer contribution. Other insurance and pension charges need an employer-specific calculation.

The dossier does not give remittance deadlines or filing form names. Confirm your filing frequency and due dates with the Dutch tax authority before the first pay run, and do not assume one deadline fits every employer.

Working-time rules that affect pay

The general adult limits are 12 hours per shift and 60 hours per week. Averages of 55 weekly hours over 4 weeks and 48 over 16 weeks also apply. These are ceilings, not a standard working week. Sector, CAO, age and pregnancy exceptions apply.

Daily rest is normally 11 consecutive hours, with a limited reduction to 8 hours once in 7 days when work requires it. Weekly rest is normally 36 consecutive hours, or 72 over 14 days under the split-rest rules.

A public holiday does not automatically give a legal right to time off. Check the employee’s CAO or contract for days off and how they are paid. For on-call staff, work normally needs 4 days’ notice, which a CAO may reduce to 1 day.

The Netherlands taxes employment income through Box 1 of the personal income tax system. The rates below are for people aged 66 or younger in 2026. Payroll needs to apply them correctly, because the first band is not a plain income tax rate.

Income tax bands (Box 1)

The top rate of 49.5% applies only to the portion of income above the highest threshold. Credits, deductions and AOW status all affect the final result, so these bands are not a take-home pay estimate.

National insurance sits inside the first band

For employees below AOW pension age throughout 2026, national insurance premiums are AOW 17.90%, Anw 0.10% and Wlz 9.65%, charged on relevant income up to EUR 38,883. These are included in the first Box 1 band. They are not an extra flat deduction on all salary, so do not add them on top of the 35.75% band.

Employees at or above state pension age, or reaching it during the year, are treated differently. Check the employee's birth date and AOW status before you set up their withholding.

How withholding works

You withhold wage tax from each payment and remit it. Pay periods are agreed in writing and can be monthly, weekly or four-weekly. Withholding follows the pay period worked, so apply it to each payment as it falls due. This section's sources do not set out the withholding tables or the method for applying credits to each payslip. Confirm those with the Dutch tax authority or your payroll provider before the first pay run.

Allowances and credits

Tax credits and deductions reduce the Box 1 result, and which ones apply depends on the individual. The dossier for this guide does not list credit amounts or eligibility rules. Collect the employee's tax credit elections and personal details, and check the current amounts with the tax authority rather than using remembered figures.

Employee deductions and employer charges

For employees, income tax and national insurance are both handled through the Box 1 withholding described above. Other deductions, such as pension contributions, depend on the fund and the employment terms. Payroll employees are entitled to an adequate pension arrangement, so confirm the actual fund, contributions and covered earnings.

The employer pays a separate Zvw health levy of 6.10% in 2026, on maximum contribution income of EUR 79,409. This is one payroll charge, not the total employer contribution rate. Other insurance and pension charges need an employer-specific calculation.

Business taxes are a separate matter

The corporate tax rate is 25.8% and the general VAT rate is 21%. These are business and transaction taxes. Neither is an extra percentage taken out of an employee's salary.

Employer contributions in the Netherlands

Employer contributions are the payroll charges a Dutch employer pays on top of gross salary. The dossier gives one headline employer rate for 2026, but it also contains a separate employer health levy and a note that other insurance and pension charges need an employer-specific calculation. Treat the headline rate as a starting point, not a final budget figure.

Employer and employee rates

The OECD figures are 2025 measures from a different source and use a different method from the national government rates. Do not add or mix the two sets. Use the 2026 national government rates for current payroll planning and confirm them for your specific employee.

Ceilings and thresholds

The employer Zvw health levy is 6.10% in 2026, with maximum contribution income of EUR 79,409. The dossier lists the same figure as the ceiling for health and long-term care. Income above that amount does not attract the levy. The dossier does not give ceilings for the other employer charges, so check those before you budget for higher earners.

On the employee side, national insurance rates for people below AOW pension age throughout 2026 are AOW 17.90%, Anw 0.10% and Wlz 9.65%, up to EUR 38,883 of relevant income. These are included in the first Box 1 income tax band, rather than being an extra flat deduction on all salary.

What is and is not included

• Included in the Zvw levy: health insurance contributions up to maximum contribution income of EUR 79,409.
• Not covered by the dossier: the breakdown of the 16.97% headline rate, other insurance premiums and sector-specific charges. Ask your payroll provider or the tax authority for the components that apply to the employee.
• Pension: payroll employees are entitled to an adequate pension arrangement. Confirm the actual fund, contributions and covered earnings, because pension cost is separate from the rates above.
• Holiday allowance: the usual statutory minimum is 8% of gross eligible pay, including overtime. It is part of pay, not a contribution, but it increases the base on which you budget.
• 13th month: there is no general statutory 13th-month or year-end bonus. A collective agreement or employment agreement can make one compulsory.

Budgeting without a worked example

The dossier does not contain a worked cost example, so this guide does not calculate one. To estimate the cost of a hire, take gross pay including holiday allowance, apply the employer rates confirmed for that employee, add the pension contribution under the applicable scheme, and include any collective agreement extras. Cross-check against the payroll provider calculation before you commit to a salary offer.

Annual leave

The statutory yearly minimum is 4 times the employee's weekly working hours. For a 40-hour week that is 160 hours. Entitlement for part of a year is proportional. A collective agreement (CAO) or the contract can add leave, so check both before setting up the leave balance in payroll.

Statutory leave that is not used normally expires the following July, subject to applicable exceptions. Confirm the exceptions before you write off any balance.

Holiday allowance

Holiday allowance is separate from paid holiday time. The usual statutory minimum is 8% of gross eligible pay, including overtime. A CAO can change the arrangement, and so can a written agreement for earnings above 3 times the minimum wage. There is no general statutory 13th-month or year-end bonus. A CAO or an employment agreement can make one compulsory, and it is separate from holiday allowance.

Public holidays

The official calendar lists the 2026 public holidays, but a public holiday does not automatically give a legal right to time off. Check the employee's CAO or contract for days off and for how they are paid. Do not assume a day off with pay for every date on the calendar.

Sick pay

The employer normally continues at least 70% of salary for up to 2 years. In year 1 a minimum-wage floor applies. A CAO or contract can require more. Reintegration duties apply to the employer, and UWV can extend wage continuation by up to 1 year if the effort has been insufficient. Treat sick pay as an employer cost, and check the contract terms before calculating it.

Maternity, partner and parental leave

Maternity leave is at least 16 weeks in total for a single pregnancy, including at least 10 weeks after birth. Timing, multiple births and hospitalisation can alter the entitlement. UWV pays the maternity benefit, which is based on daily earnings and is capped.

Each eligible parent has 26 working weeks of parental leave per child. Because the benefits are capped, the UWV payment can be lower than the employee's usual pay. Confirm any CAO top-up with the employee's agreement before leave starts.

Care leave

Short-term care leave normally covers 2 times weekly hours per year at 70% pay, at least the minimum wage. Long-term care leave normally covers 6 times weekly hours and is unpaid. Eligibility, CAO variations and emergency-leave rules must be checked.

Dutch compliance risk concentrates in a few places: written terms, the collective agreement (CAO), contract chains, probation, and ending employment through the correct route. The dossier I have covers employment terms and termination well. It does not cover employer registration with the tax authority, payroll tax return filing or payment deadlines, or statutory record-keeping periods. Check those with the Dutch tax authority or a local adviser before your first pay run.

Collective agreements

OECD data puts collective bargaining coverage in the Netherlands at 72.1% for 2024, so a CAO is likely to apply to many hires. A CAO can change holiday allowance, leave, notice and probation. Identify the actual agreement for each employee and record why it applies.

Written terms and contracts

A Dutch employment contract can be verbal, but key details must be given in writing within 1 week and further terms within 1 month. Identify the legal employer, pay, hours, contract duration and the applicable CAO, pension and leave terms. Agree the pay period in writing. Monthly, weekly and four-weekly payment are all possible, and pay follows the period worked.

If you use a payroll company, it is the legal employer while you supervise the work. Equivalent employment terms and dismissal protections still apply.

Fixed-term contracts and probation

The usual limit is 3 successive temporary contracts within 3 years. A fourth contract, or a chain longer than 3 years, becomes indefinite, and gaps of 6 months or less generally count toward the chain. Successive employers, CAO variations and statutory exceptions matter.

CAO variations can apply.

Notice and termination

A dismissal needs a valid ground and the correct route. Contested economic or long-term incapacity cases normally go through UWV. Other grounds go to court. A written mutual agreement carries a 14-day reconsideration period, extended to 21 days if the agreement does not state the right.

For a permanent contract, the statutory employer notice depends on service:

Contract, CAO, AOW-age and procedural exceptions apply. The statutory transition payment is one-third of a monthly salary per year from the first day, calculated proportionally for shorter service. The 2026 cap is €102,000 gross, or one gross annual salary if higher. Eligibility and exceptions depend on how employment ends.

Classification of workers

The actual working relationship decides whether someone is self-employed, and both parties must assess it. Enforcement resumed on 1 January 2025, and false self-employment can lead to payroll tax assessments. A contractor agreement alone is not enough.