AUG (Authorized User Group) Certified
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AUG (Authorized User Group) Certified
Nasscom Certified
SNA Certified
Netherlands · EOR
Hire Dutch employees legally without setting up a Dutch entity. We handle employment contracts, payroll, social contributions, IND visa sponsorship and full compliance — from day one.
Dutch employment law is employee-protective and unusually prescriptive about paperwork. These are the four rules that catch foreign employers out most often.
Dutch law requires a written contract with specific mandatory terms. Fixed-term contracts convert automatically to indefinite contracts after 3 successive contracts or 36 months, whichever comes first.
Probation is capped at 1–2 months depending on contract type — and is void entirely on contracts of six months or less.
Statutory annual leave is 20 days minimum; market standard sits at 25–30 days and you will lose candidates below that.
On top of salary, an 8% holiday allowance (vakantiegeld) is mandatory and is typically paid out in May.
Dutch employers carry sick pay for up to 104 weeks. Year 1 requires a minimum of 70% of salary (most employers pay 100%); year 2 requires a minimum of 70%.
This is the single largest unbudgeted liability for companies hiring in the Netherlands for the first time. Under EOR, it sits with us.
Enforcement of the Wet DBA resumed in 2025, and the VBAR framework tightens the employee-versus-contractor test further.
If your Dutch "contractor" works set hours under your direction, they are an employee in the eyes of the Belastingdienst. EOR removes that exposure.
Gross salary is roughly two-thirds of the story. Below is every statutory component that lands on top of it.
| Payroll component | Rate / details |
|---|---|
| Employer social security contributions | WGA 0.96% · WW 2.74–7.74% · ZW 0.56% · AOF 7.64% · WKO 0.50% · ZVW 6.10% — applied to a monthly contribution ceiling of €6,617.42 |
| Pension — StiPP (mandatory under EOR / payrolling) | Employer 15.9% + employee 7.5% |
| Holiday allowance (vakantiegeld) | 8% of gross annual salary — mandatory, typically paid in May |
| Income tax bands (employee-side) | 35.75% up to €38,883 · 37.56% from €38,883 to €78,426 · 49.50% above €78,426 |
| Sick leave obligation | Up to 104 weeks — year 1 minimum 70% (most employers pay 100%), year 2 minimum 70% |
| Annual leave (statutory) | 20 days minimum; market standard 25–30 days |
| Transition payment on termination | ⅓ month's salary per year of service, accruing from day one — capped at €102,000 |
Rates verified for the 2026 tax year. Figures are indicative — your quote is calculated on the actual salary and contract type.
Eligible international hires can receive 30% of gross salary tax-free for up to five years. For new applications from January 2027 the benefit reduces to 27%.
The application window is four months from the start date. Miss it and the ruling only applies from the month after approval — you cannot backdate it. We file it as part of onboarding, so it applies from day one.
Dhi ADT holds IND recognised sponsor status. That means we can sponsor Kennismigrant (Highly Skilled Migrant) and EU Blue Card permits directly, under our own registration.
You do not apply to become a sponsor yourself, do not pay the government sponsor-recognition fee, and do not wait out the recognition process before you can hire.
You cannot terminate a Dutch employee at will. There are exactly three lawful routes, and each has its own evidentiary bar.
For redundancy (business-economic grounds) or long-term incapacity. Requires a permit from the UWV before notice can be given.
For performance, conduct or a damaged working relationship. Requires a documented file — courts reject thin cases and may award additional compensation.
A settlement agreement (vaststellingsovereenkomst). Fastest and most common route, but the employee has a statutory two-week cooling-off period.
Statutory employer notice runs from 1 month (under 5 years' service) to 4 months (15+ years). The transition payment is mandatory from day one of employment — there is no qualifying period — at one-third of a month's salary per year of service, capped at €102,000.
Charged on top of full employment costs — salary, employer contributions and holiday allowance. Nothing else.
No entity setup. No legal fees. No surprise obligations. Full employment costs are transparent from the first conversation.
Yes. Under an Employer of Record arrangement, Dhi ADT is the legal employer on paper and holds the Dutch employment contract, payroll registration and statutory obligations. You direct the employee's day-to-day work exactly as you would your own staff.
Setting up a BV takes three to six months and carries ongoing accounting, filing and audit obligations. EOR removes that entirely — most companies switch to their own entity only past 15–20 employees in-country.
Budget roughly 1.30–1.40× gross salary before the EOR fee. That covers employer social contributions of about 20–30%, the mandatory 8% holiday allowance and the StiPP pension employer share of 15.9% applied to the pensionable base.
The EOR service fee starts at €449 per employee per month on top. We quote the exact all-in figure against a specific salary before you commit to anything.
It is a Dutch tax facility that lets an employer pay up to 30% of gross salary as a tax-free allowance for up to five years, for employees recruited from abroad who meet a minimum salary threshold and a distance-from-the-border condition.
Two things matter operationally: the application must be filed within four months of the start date to apply retroactively to day one, and the benefit steps down to 27% for new applications from January 2027.
Yes. Dhi ADT is an IND recognised sponsor, so we file Kennismigrant and EU Blue Card applications under our own registration. Your company does not need to become a sponsor, pay the recognition fee, or wait for its own approval.
Individual permits are typically processed in about two weeks on the fast track, after which the employee can start within 5–10 business days.
For an EU national or someone already holding Dutch work rights: 5–10 business days from signed service agreement to first day, with contract, payroll registration and pension enrolment run in parallel.
For a non-EU hire needing sponsorship, add roughly two weeks for the permit itself.
We manage the legal process — UWV permit, court petition or settlement agreement — and handle notice, filings and the final settlement. Statutory costs such as the transition payment are passed through to you under the service agreement, as they would be with any employer.
Review the termination and notice clauses in your EOR agreement before signing; this is the section that differs most between providers.
Book a 15-minute call. We'll confirm your structure, timeline and cost — before you commit to anything.
Where the maths actually tips from EOR to your own BV.
TaxEligibility, thresholds, the four-month window and the 2027 change.
ComplianceContractor versus employee classification, and what enforcement looks like now.
Innovative solutions for global workforce management and payroll services.
Queens towers, Delflandlaan 1, 1062 EA Amsterdam, The Netherlands
26 Bow Road, Brooklands, Milton Keynes, MK10 7GN
Unit 16, 19th Floor, The Headquarters, Orbit, Plot No. 30/C, Sy No. 83/1, Knowledge City, Raidurg, Hyderabad, Telangana – 500032
experts@adtsolution.com
