EOR Service in Netherland

Hire, Onboard and Pay Employees in Netherland Quickly and Efficiently

Hiring in Netherland at a glance

CURRENCY
Euro (EUR)
working hours
40 hours per week
public/bank holidays
10 to 12
capital
Amsterdam
language
Dutch, Frisian
date format
DD/MM/YYYY
remote workers
1.2M
tax year
January 1st to December 31st
minimum hourly salary
No minimum wage
CURRENCY
Euro (EUR)
working hours
40 hours per week
public/bank holidays
10 to 12
capital
Amsterdam
language
Dutch, Frisian
date format
DD/MM/YYYY
tax year
January 1st to December 31st
payroll frequency
Monthly
GDP
US $ 1018.01 billion (est. 2021)

Employer of Record in Netherland

An Employer of Record (EOR) in the Netherlands provides valuable support for companies looking to hire employees in the country. Partnering with an EOR allows businesses to access the country’s talent pool without establishing a legal entity. The EOR acts as the official employer, handling payroll administration, tax compliance, employment contracts, benefits management, and other HR-related tasks. This enables companies to focus on their core business activities while leaving the legal and administrative responsibilities to the EOR. 

By leveraging the EOR's expertise in Dutch employment laws and regulations, companies can ensure compliance and mitigate risks associated with hiring and managing employees in the Netherlands. Additionally, an EOR can provide guidance on local labor practices, employee benefits, and assist with navigating the complexities of the Dutch business landscape, facilitating a smoother and more efficient hiring process.

Why use Netherland EOR?

Using an EOR/PEO in the Netherlands offers several country-specific advantages. Firstly, the Netherlands has a highly skilled workforce, and partnering with an EOR allows businesses to tap into this talent pool quickly and efficiently. Additionally, the EOR handles all employment and payroll-related compliance, ensuring adherence to complex Dutch labor laws and regulations. 

For example, work permit approval in the Netherlands can take up to 90 days. To reduce the wait time, employers must register as a recognized sponsor. This will reduce the wait time from 90 days to 7 weeks via the Immigration and Naturalisation Service. 

The EOR's local expertise can minimize the risk of non-compliance and associated penalties. They can handle work permit approval-related processes in the Netherlands and ensure reducing the wait times.  By leveraging an EOR, companies can navigate the Dutch market seamlessly, saving time and resources on legal and administrative processes. Overall, using a Netherlands EOR/PEO streamlines operations, mitigates risks, and facilitates successful market entry and growth in the country.

Gloroots’ Netherland EOR services can help you enter the new market with ease by providing local expertise and networks. Our platform ensures 100% compliance to the country’s labor laws, thereby reducing legal risks and penalties. You can streamline hiring operations in the Netherlands and keep up with the changing compliance scenario with Gloroots as your trusted EOR partner.

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EOR Costs in Netherland

EOR/PEO pricing in the Netherlands depends on several factors like the number of employees, the scope of services required, and the specific EOR provider. Generally, EOR pricing methods include a percentage of the employee's salary or a fixed monthly fee per employee. The Netherlands' pricing range for EOR services typically falls between 5% to 15% of the employee's total compensation. Additional fees may apply for specialized services or customization. So, consulting with EOR providers to obtain personalized quotes and compare offerings is recommended to determine the most suitable pricing structure for your business needs. Consider factors such as services offered, compliance expertise, and support when evaluating EOR/PEO pricing options.

Gloroots offers a simple pricing model that provides optimum investment value. We manage employment-related admin tasks and legal compliances. Moreover, Gloroots offers a live dashboard that helps you track your Indian workforce expenses in real time. It also offers HR support and benefits management to the employees hired through EOR.

Key Metrics For Foreign Employers

The table below depicts key indicators from the Global Talent Competitiveness Report for employers wishing to hire from the Netherlands.

Factors Global Ranking Interpretation
Rule of law 11 Indicates effectiveness of law enforcement
Labour-employer cooperation 5 Indicates positive labor-employee relationships
Reading Maths, and Science 14 Indicates average scores in OECD's survey of 15-year old students
University Ranking 12 Indicates average QS rankings
Labour productivity per employee 17 Indicates total output by the total labor input used to produce that output
Ease of finding skilled employees 24 Indicates findability of skilled talent
Workforce with tertiary education 27 Indicates % of workforce with PG degrees
Digital Skills 19 Indicates prevalence of advanced digital skills in the population

Source: The Global Talent Competitiveness Index 2022

Why work in Netherland?

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Risks of misclassification

The Netherlands treats contractors, sole proprietors, self-employed individuals and full-time workers differently and there are significant risks associated with misclassification.

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Employing in Netherland

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Tax

Tax and Social security contribution

Employer Tax 

25.8% corporate tax rate (15% on income below EUR 395,000)

21% VAT (standard rate)

Social Security 

Total employer contribution rate for salaries up to EUR 59,706 is around 22%, which includes:

Unemployment Insurance (WW): 2.7% or 7.7% depending on contract type and industry

Work and Income Insurance (WIA) & Invalidity Insurance (WAO): 5.49% or 7.05% plus variable contribution

Health Insurance (ZVW): 6.7%

Surcharge: 0.5%

Employee Tax 

Individual income tax rates

  • up to EUR 35,472: 9.42%
  • up to EUR 69,398: 37.07%
  • over EUR 69,398: 49.5%

Social Security

The total employee contribution rate on annual earnings up to EUR 35,472 is 27.65%, out of which:

  • National Old Age Pension (AOW): 17.9%
  • Long-term Care (WLZ): 9.65%
  • National Survivor Benefits (ANW): 0.1%

Separation

Notice Period

The maximum statutory notice time for an employer is four months, depending on the length of employment.

Probation period

The duration of the probationary or trial phase is contingent upon the duration of the employment contract. The maximum probationary period is two months. Employer and employee are equally subject to the probationary term.

Employment Termination and Severance

In addition to an employee's employment is terminated by mutual agreement, by default – that is, in the case of a contract with a fixed-term duration – or by resignation, Dutch labour law also provides for an employee's dismissal for gross misconduct, reasons related to the company, as well as for extended absences from work due to illness. Both of these categories are in addition to the other employment termination options. However, the authorization of the Dutch Employee Insurance Agency is required for the remaining two possible scenarios.

Start Hiring in Netherland today

Simplifying international hiring and compliance management can be overwhelming for businesses. The complexities are extensive, ranging from adhering to employment laws to handling payroll processes, DE&I compliance, and data protection regulations such as GDPR. 

With Gloroots, businesses can streamline the global hiring process, minimizing their efforts significantly. Gloroots' EOR services offer a streamlined approach to onboarding, payments, tax compliance, and more. We take care of employment contracts, ensure timely payments, and provide compliant benefits, effectively mitigating cross-border employment and payroll compliance risks. In short, we can handle all the intricacies of international hiring allowing you to focus on finding the best talents for your business.

Grow your team in Netherland

Growing a team means hiring the right employees at the right time and for the appropriate positions. Employers in Portugal must have a local legal organisation and use local resources to handle compliance, payroll, tax, and benefits management. The complexity of employment regulations in Portugal demands compliance with employment laws.

With Gloroots’s global Employer of Record (EoR) service, you can let Gloroots do the heavy lifting of payroll, tax, benefits, and compliance and concentrate on what matters to you most: your employees and company growth.

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Experience Seamless Hiring in Netherland?

Let us take care of all your employment needs. We guarantee easy onboarding & compliant workforce management in Netherland.

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