Employment in the Netherlands is governed mainly by Book 7 of the Dutch Civil Code, the Working Hours Act and the Minimum Wage Act, with sector collective labour agreements (CAOs) often adding to the statutory minimums. Here is what employers need to know about leave, pay, tax and ending employment.
Dutch leave entitlements are expressed as multiples of the employee's weekly working hours, so they scale automatically for part-time staff. Several family leave types are paid by the Employee Insurance Agency (UWV) rather than the employer.
20 days a year for a 5-day week. Many CAOs and contracts add extra-statutory days on top.
6 weeks before and at least 10 weeks after the birth. The employee receives a benefit from UWV during the leave.
Once the weekly working hours, fully paid by the employer and taken within 4 weeks of the birth.
Per child, per parent, until the child turns 8. Nine weeks taken in the child's first year are paid by UWV at 70% of daily wage (capped).
After taking the week of birth leave, partners can take up to 5 weeks (5 times their weekly hours) of additional birth leave within 6 months of the birth. The employer applies to UWV, which pays a benefit of 70% of daily wage up to 70% of the maximum daily wage.
Employers must continue paying at least 70% of wages to sick employees for up to 104 weeks, and must follow the reintegration obligations of the Gatekeeper Improvement Act (Wet verbetering poortwachter). Holiday entitlement and holiday allowance keep building up during sickness and pregnancy and maternity leave.
Set up statutory and extra-statutory holiday, birth and parental leave in IceHrm, each with its own accrual, carry forward and approval rules, with pro-rata entitlements based on each employee's hours. Employees see their live balance before they apply, and managers see who is away on a shared calendar. Leave management →
Since 2024 the Netherlands has a statutory hourly minimum wage instead of monthly or weekly amounts. It is indexed on 1 January and 1 July each year.
Gross, for employees aged 21 and over, from 1 July 2026. Lower youth rates apply from age 15 to 20.
At least 8% of gross annual salary (vakantiegeld), paid at least once a year, usually in May or June.
For employees aged 18 and over, with an average of no more than 48 hours a week over 16 weeks.
The law does not set an overtime premium. Whether overtime is paid at a higher rate is set by the CAO or the employment contract, but pay for all hours worked must average at least the minimum hourly wage.
Capture attendance and overtime in IceHrm and feed the hours straight into payroll, so hourly pay, CAO overtime rates and the holiday allowance are based on what was actually worked. Time & attendance →
Employment income is taxed in Box 1 at progressive rates. Employers withhold wage tax and national insurance contributions from each salary payment and file a monthly payroll tax return with the Tax and Customs Administration (Belastingdienst).
| Taxable income | Rate |
|---|---|
| €0 – €38,883 | 35.75% |
| €38,884 – €78,426 | 37.56% |
| €78,427 and over | 49.50% |
On top of gross salary and the holiday allowance, employers pay employee insurance premiums and an income-related health insurance contribution. Many sectors also have a mandatory pension fund.
Income-related Zvw contribution on wages up to €79,409 (2026), paid by the employer to the tax authorities.
Unemployment (WW), disability and sickness premiums on wages up to €79,409 (2026). Rates depend on the sector and contract type.
Not required by law in general, but mandatory where a sector pension fund or the CAO applies.
Build Dutch pay the way you already structure it, with your own salary components, deductions and formula columns, such as a holiday allowance reserve or pension deduction. Want to know how well IceHrm handles payroll calculations for the Netherlands? Contact us or see Payroll →
Dutch dismissal law is strict. An employer needs a reasonable ground and usually either a permit from UWV (for economic reasons or long-term illness), a decision of the subdistrict court (for personal reasons such as poor performance), or a settlement agreement with the employee.
| Length of employment | Notice |
|---|---|
| Less than 5 years | 1 month |
| 5 to 10 years | 2 months |
| 10 to 15 years | 3 months |
| 15 years or more | 4 months |
When the employer ends the contract, or does not renew a fixed-term contract, the employee is entitled to a statutory transition payment from the first day of employment, including during probation.
On termination, unused holiday hours and accrued holiday allowance must be paid out with the final pay.
The Netherlands has official public holidays, but no law gives employees a paid day off on them. Whether staff are off, and whether they are paid, depends on the CAO or employment contract.
Leave groups let each office or CAO group have its own holiday calendar, for example one that gives Liberation Day off every year and one that does not. Holiday calendars →
Employees can be hired on indefinite (vast) or fixed-term (tijdelijk) contracts. The employer must provide the key terms of employment in writing and check the employee's identity and right to work before they start.
A fixed-term contract automatically becomes indefinite when the employee has had more than 3 temporary contracts with the same employer, or has worked on temporary contracts for more than 3 years. Gaps of up to 6 months between contracts count towards the chain. A CAO can set different rules.
The Senate approved the Act on more security for flex workers (Wet meer zekerheid flexwerkers) on 7 July 2026. It takes effect on 1 January 2028 and will change the rules for on-call and flexible contracts.
Send contracts for e-signing, store them with ID checks on the employee's record, and track contract end dates and onboarding with task lists so nothing is missed. Documents & e-signing →
This guide is general information to help you plan HR processes, not legal, tax or financial advice. Employment law and rates change regularly and awards, enterprise agreements and state rules may give employees more than the minimums shown here. Always confirm current requirements with the official sources or a qualified adviser.
Configure leave types, accrual rules and public holidays for Netherlands, keep employee records and contracts in one place, and run payroll with your own salary components. Want to know how IceHrm handles payroll calculations for Netherlands? Talk to us.
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