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Employing in Netherlands

At a glance

Employment in Netherlands

Foreign companies that employ workers in Netherlands face several challenges and must adhere to the legal and regulatory framework that is in place. Employment law provides strong labor conditions and protections for employees, so employing people will generally be an important investment and commitment. Workers from outside the EU will face more requirements than others, and our guide explains Netherland policies on leave, termination and payment of benefits.

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Payroll & Tax in Netherlands

Complying with local payroll and tax requirements is essential for a company doing business in Netherlands. Issues such as tax rates and withholding and social security are all essential in ensuring a seamless human resources operation. If you hire employees in your business you are obliged to pay insurance on behalf of your workers for a number of schemes, including national insurance. Many companies will consider outsourcing these administrative tasks to a GEO (Global Employment Organization).

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Immigration / Work Permits in Netherlands

Foreign workers are required to have the proper visas and sometimes work permits in Netherlands, as established by immigration laws. If you come from outside of the European Union, and are going to run the business in the Netherlands or move foreign staff there, this means that you will need a residence permit, as well as a work permit. This often requires company registration prior to sponsoring work permits for employees, which can be a problem if your company is trying to enter the country quickly.

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Incorporation

There are several business structures available for incorporation in Netherlands, and each has advantages and disadvantages depending on the planned scope of business activity.   These include a Representative Office, Branch Office or Subsidiary Company. Our guide has a comparison of the time and cost for incorporating standard company structures, as well as registration processes.

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GEO Solutions or DIY Employment in Netherlands?

Companies entering Netherlands must make a decision whether to use their own resources for a Do-It-Yourself (DIY) approach, or to use a Global Employment Organization to handle payroll and employment responsibilities. A GEO or Netherlands Employer of Record solution makes it faster, easier and cheaper to deploy staff if they are not ready to register as an employer with the Dutch authorities.

A DIY approach will typically take weeks until there is a properly registered entity ready to run payroll and handle all of the statutory requirements. Shield GEO can deploy foreign staff in 4-6 weeks and local staff in 48 hours. Additionally Shield GEO is responsible for all compliance issues related to the employment.

Shield GEO
Shield GEO provides a fully outsourced employment service in Netherlands. Companies expanding into the Netherlands can contract with Shield GEO to employ and payroll their staff on their behalf in the Netherlands. Shield GEO then assumes the legal responsibility for these employees, becoming the Employer of Record, sponsoring them on work permits, complying with local employment law and running their monthly payroll.

Using Shield GEO Employer of Record Services in Netherlands

Payroll Netherlands
Management Fee for Employer of Record Services / Monthly Payroll Costs

Please contact us for a quote

 
Grossed income Tax Rate (%)
0 – 19,645 5.10%
19,645 – 33,363 10.85%
33,363 – 56,531 42%
56,531 + 52%
Tax Returns Supplied

Yes

Employers Social Security and statutory contributions

Disability (WAO) – 4.95%

Unemployment (WW) – 2.15%

Health Insurance (Zvw) – 7.50% up to a max of €195.58 per day

Pension – 2.79%

Sickness Benefit – 1.59%

Childcare – 0.50%

Employees Social Security and statutory contributions

31.15% capped at earnings up to €33,363 p/a

Work Permits
Can Sponsor Work

Yes, Shield GEO is able to sponsor non-EU workers on Highly Skill Migrant/Knowledge Migrant (‘Kennismigrant’) Work and Residence Permits that allow them to work in The Netherlands. As the Employer of Record, Shield GEO handles all of the formalities and employment requirements in Holland. The client maintains responsibility for day to day employee management.

Work Permit cost

Please contact Shield GEO for a quote.

Work Permit processing time

2-4 weeks

Work Permit process

The employee must be earning over €4,189 a month for over 30’s and €3,071 for those under 30. They also must have a Bachelor’s Degree, a specialization and several years of relevant work experience.

Process: The Dutch Employer (as a certified Employer) submits the TEV application to the IND in The Netherlands along with the application for a Knowledge Migrant (‘Kennismigrant’) Resident Permit. A decision will be made usually within 2-4 weeks.

Note that nationals of the US can travel to Holland whilst the visa is being applied for.

Once approved, the applicant can commence their role in Holland.

For the physical Residence Permit card to be issued the employees biometrics must be taken in Holland; fingerprints, photo, signature. These will be stored digitally on their Residents Permit card. This will be issued a few weeks after biometrics have been taken at an office of immigration authority.

Officially the employee can only start working once they physically receive the Residence Card (timestamp Y), however it is possible to get a temporary sticker in their passport to allow them to commence their role once the Residence Permit is approved.

On arrival in Holland they need to register at the local Town Hall,

Permits are valid for up to 5 years but this is dependent on the length of the assignment.

Documentation required: employment contract, cv, degree/diploma certificates, professional references, local employers registration as an Authorized Sponsor (Erkend Referent), Dutch Health Insurance.

Can Work Permit be processed in country

Yes but country dependent

Switch Business Visa to Work Permit?

No

Can Spouse work on dependent visa?

Yes

Business Visas
Can do Business Visa

Yes

Business Visa Cost

Please contact Shield GEO for a quote.

Business Visa processing time

5-10 days Consulate Dependent

Others
Can supply private health care

Yes

Can assist opening bank accounts

Yes

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