Article
12 min read
How to Hire Using an Employer of Record in the Netherlands (2025)
Employer of record
Author
Jemima Owen-Jones
Last Update
June 26, 2025
Table of Contents
What is a Netherlands Employer of Record?
Top reasons to use an EOR in the Netherlands
How to hire in the Netherlands: Step-by-step guide
Employment compliance tasks an Employer of Record manages in the Netherlands
How much does an EOR in the Netherlands cost?
Which Netherlands EOR should you choose?
Is Deel Employer of Record a strong choice for hiring in the Netherlands?
Hire employees in the Netherlands confidently with Deel Employer of Record
Key takeaways
- Setting up an entity in the Netherlands can take months and cost over €36,407 in initial legal, tax, and payroll setup fees
- A Netherlands Employer of Record lets you engage talent through its local entity, bypassing setup delays, legal costs, and compliance headaches
- Deel EOR owns its Netherlands entity for full control, supports hiring in 150+ countries, delivers transparent pricing, real-time compliance monitoring, and has top G2 ratings
Hiring top talent in the Netherlands offers strategic access to a skilled, innovative workforce. Yet the pain of entity setup, payroll complexity, and legal risks related to working hours, probation periods, and pension contributions can stall your plans. You face months of registration, navigating minimum wage rules, local tax nuances, and ongoing reporting burdens.
An Employer of Record (EOR) in the Netherlands takes on those pains by legally employing your staff, handling payroll, taxes, statutory leave, including maternity leave and paternity leave, and health insurance. Deel’s Employer of Record even gives you real-time compliance monitoring, workforce planning with AI insights, automated background screening, and global payroll in 150+ countries.
By using Deel EORs wholly-owned Netherlands entity with transparent monthly pricing, you unlock local expertise, full compliance, and faster hiring. Read on to see how Deel’s EOR services in the Netherlands streamline each step in your expansion journey.
See also: What’s the Fastest Way to Enter Markets and Hire Globally?
What is a Netherlands Employer of Record?
An Employer of Record in the Netherlands legally employs talent on your behalf, taking on legal and operational responsibilities. You manage day-to-day tasks—like performance reviews and culture—while the EOR takes on payroll, taxes, social security contributions, and statutory leave.
This liability transfer means the EOR holds employment contracts compliant with Dutch labor law, files wage tax by due dates, and ensures GDPR payroll controls. With Deel EOR’s global reach and real-time compliance monitoring, you get Dutch expertise backed by a wholly-owned local entity.
Deel Employer of Record
Top reasons to use an EOR in the Netherlands
Global companies gain four key advantages when they hire via an EOR:
- Speed to hire: Setting up a local entity in the Netherlands can take months. An EOR lets you onboard talent in days, using automated contract generation, background and work authorization checks, and document collection.
- Cost efficiency: Avoid high setup and running costs of owning a local entity, legal fees, and office expenses. Deel EOR’s flat fee and real-time compensation benchmarking help you control budgets and employment costs.
- Risk mitigation: Dutch courts strictly enforce employee classification and local employment law. EORs assume the responsibility and carry that risk, reducing your exposure to fines and back taxes.
With Deel EOR, you’ll have full statutory coverage, lower upfront investment, faster ramp-up, and liability transfer.
We use Deel EOR every time we enter a new market — it’s our fast track to simple and compliant hiring before setting up entities,
—Lindsay Ross,
Chief Human Resources Officer, Bitpanda
How to hire in the Netherlands: Step-by-step guide
Use this eight-step checklist to hire through an EOR and keep control in your hands:
1. Choose an EOR with a wholly-owned Netherlands entity
Start by verifying that the EOR owns its local Dutch entity. That ensures direct compliance with laws and avoids intermediary risks. Deel EOR operates through a wholly-owned BV in Amsterdam and is listed with the Dutch Chamber of Commerce.
Tip: Ask for entity registration details and verify in the Kamer van Koophandel database.
2. Book a demo and verify social proof
Schedule a demo to see the EOR’s features—like automated contract generation aligned with Dutch labor law, background checks, and onboarding workflows. Review case studies of companies hiring in the Netherlands. Deel’s high user satisfaction and positive reviews on G2 and Trustpilot reflect real performance.
Tip: Request references from customers in your industry.
3. Request a transparent EOR quote
Get an itemized cost breakdown: gross salary, 18%–28% social security, wage tax, pension auto-enrolment fees, health insurance, and any service charges. Deel EOR's flat fee model means no surprise mark-ups.
Tip: Compare costs before you expand—read our article EOR vs. Entity Costs: What’s More Affordable?
4. Submit a 12–24-month hiring plan
Provide your expected headcount and roles over the next one to two years. The EOR uses that to forecast costs and compliance filings. With Deel’s workforce Planning and real-time AI Workforce Insights, you’ll see budget impacts before you commit.
Tip: Update your plan quarterly as hires occur.
5. Create the employment contract on the platform
Use the platform’s contract generator to draft Dutch-law-compliant employment contracts. Include mandatory clauses: probationary period up to two months, working hours, public holidays, and termination notice matrix. The EOR reviews and ensures accuracy.
Tip: Leverage template clauses aligned with collective labor agreements if relevant.
6. Confirm the candidate’s right to work
Verify immigration status, work permit, and EU residency. The EOR runs right-to-work checks and stores documents under GDPR controls. Deel Immigration can also help secure visas and permits.
Tip: Run background, work authorization, and work permit eligibility checks at the offer stage to avoid last-minute surprises.
7. Run the onboarding workflow
Initiate onboarding: The EOR will invite the employee to the platform, collect bank details, set up payroll, and enroll the employee in pension schemes. The EOR handles statutory leave registrations, health insurance enrollment, and tax filings.
Tip: Use Deel Engage to roll out training and performance goals, and Deel IT to provision equipment.
8. Maintain ongoing compliance
Stay up to date on Dutch legal changes—like overtime rules after 40 working hours—with Deel Compliance Hub. The EOR files RTI equivalent reports, updates contracts, and alerts you to regulatory shifts.
Tip: Subscribe to Deel’s compliance newsletter to receive clear and concise summaries of relevant compliance changes.
Platform Tour
Employment compliance tasks an Employer of Record manages in the Netherlands
Hiring in the Netherlands means meeting strict statutory and operational requirements. An EOR like Deel ensures full compliance by managing all mandatory employer obligations, reducing risk, and overhead.
| Category | Key Requirements (2025) |
|---|---|
| Statutory employer costs | Employer costs total ~32.65%–37.65%, depending on contract type. Covers social security (health, unemployment, disability), childcare, pension (15%), and mandatory holiday allowance (8%). Pension contributions are mandatory for all EOR employees. Additional flat fees apply for services like health & safety training, workplace insurance, and a company doctor. |
| Employment contracts & probation rules | In the Netherlands, businesses can offer employees fixed-term or permanent employment contracts. Contracts can be agreed on in writing or verbally. Legal max probation is 60 days. Allowed only for new hires and cannot be extended or paused. A good standard is 60 days (min 30). Fixed-term contracts: 0 days if ≤6 months, 30 days if 6–24 months, 60 days if ≥2 years. |
| Pay and working hours | Minimum wage (21+): €2,695.68/month or €14.40/hour (incl. 8% holiday allowance) as of July 1, 2025. Based on 262 workdays/year, 8 hours/day. Working hours: 40 hours/week, Monday–Friday. Part-time rules: No legal minimum, but after 3 months of consistent hours (e.g. 20/week), a contract for that schedule is required. Short shifts: Contracts under 15 hours/week must include shifts of at least 3 hours. Overtime: Not mandatory. Employees earning above minimum wage may be contractually exempt from additional pay. Dutch Working Hours Act doesn’t apply to employees earning 3× minimum wage, but employers must still protect against excessive hours for health and safety reasons. |
| Payroll compliance | Payslips include gross/net breakdowns, year-to-date data, and 30% tax ruling if applicable. Monthly salary is annual salary ÷ 12.96 (includes 8% holiday pay). Bonuses are taxed up to 55%. Employees without a BSN are taxed at 52% using Table 940 until BSN is provided. All adjustments, including retroactive tax changes, are reflected on payslips. |
| Vacation and public holiday allowances | Vacation: Minimum 20 days/year for full-time staff (pro-rata for part-time). Starts accruing from the hire date. Rollover: Statutory days expire 6 months after year-end; extra-statutory days valid for up to 5 years. Payout on Termination: Unused days paid; negative balances deducted. Public Holidays: 10–11 national holidays. No substitute day if on a weekend. Holiday pay for work on public holidays is optional by contract. Part-Time Staff: Receive public holiday allowance on a pro-rata basis. |
| Income taxes | System: Progressive, pay-as-you-earn. Scope: Salaries, bonuses, allowances. Withholding: Employers deduct wage tax monthly using official tax tables. Tax Year: January 1–December 31. Return Filing: Not mandatory unless requested. Deadline: May 1. Jaaropgave: Issued by February 28 annually. Rates: €0–€38,441 → 35.82%. €38,441–€76,817 → 37.48%. Over €76,817 → 49.5%. Non-regular income (e.g., bonuses): Up to 56.01% withholding. Public Transport Deduction: Fixed-rate deduction may apply; actual commuting costs are not deductible. |
| Expenses, allowances, and bonuses | Reimbursable expenses: Must be clearly business-related and supported by valid receipts—common: coworking, travel, software, equipment, phone/internet. Tax treatment: Valid business expenses = non-taxable. Missing receipts or non-business costs = taxable. Per diem & mileage: Allowed for business travel. Must follow documentation rules. Non-taxable within limits. Bonuses & commissions: Taxed up to 56.01%. Treated as non-regular income. Allowances: Usually taxable (e.g., gym, medical, insurance). May be grossed-up if requested. |
| Statutory benefits & pension requirements | Statutory benefits include Social Security covering retirement pension (AOW), disability (WIA), unemployment (WW), child benefits, healthcare insurance support, and long-term care, with employer contributions of 10-15% and employee contributions of 20-25%. Public healthcare insurance is mandatory but arranged by the employee through third parties. A mandatory private pension plan is offered through Nationale Nederlanden with a 15% employer cost. Optional benefits that employers may offer include private health and life insurance (via Allianz), travel and kidnap insurance (Chubb), wellness programs, education and certification support, relocation, travel and remote work allowances, meal lump sums, supplemental sick leave, and loans or advances. Optional benefits must be provided equally to all employees if offered. |
| Maternity, paternity, parental, adoption & foster leave | Maternity Leave: 16 weeks minimum (20 for multiples). Starts 4–6 weeks pre-due date. Mandatory 6-week post-birth leave. Paid at 100% of the max daily wage, reimbursed by UWV. Paternity/Partner Leave: 1 day (at birth), +1 week (within 4 weeks), +5 weeks (within 6 months). Paid at 100% (day + week), 70% for an additional 5 weeks, reimbursed by UWV. Parental Leave: 26 x weekly working hours. The first 9 weeks are paid at 70% (up to capped wage), and the rest are unpaid. It must be taken before the child turns 8. Adoption & Foster Leave: 6 weeks, flexible use within 22 weeks post-arrival. Paid at 100% of the max daily wage, reimbursed by UWV. Job Protection: Guaranteed during and shortly after all types of leave. Eligibility: All pregnant workers. Partner: Must be the partner of someone giving birth. Parental: Must live with and raise the child. Adoption/Foster: A court-authorized or registered address is required. |
| Sick leave, bereavement leave, and carer’s leave | Sick leave entitlement: Up to 104 weeks (2 years) from day one of employment, including part-time workers. Pay at least 70% of the daily rate, capped at €290.67/day. If the minimum wage is below, the employer must top up in year 1. It’s common practice for employers to pay 100% of the salary. Half-day increments allowed. Bereavement entitlement: Paid leave on the day of death and the day of the funeral for a housemate or close relative (e.g., spouse, parent, child, sibling). Pay: 100% of regular salary (employer-paid). Notice: No advance notice required; report as soon as reasonably possible. Care leave entitlement: Short-Term Leave: Up to 2x weekly hours per year. Long-Term Leave: Up to 6x weekly hours per year. Eligible Relationships: Includes relatives, housemates, and acquaintances with no other caregiver. Pay: Paid by employer (short-term at minimum, long-term may be unpaid unless agreed). Notice: At least 2 months prior. |
| Terminations and resignations | Termination Process: Employers cannot unilaterally terminate; they must obtain court or UWV approval unless by mutual agreement. Most terminations are done through mutual settlements, which typically require severance beyond the legal minimum (commonly 2–6 months’ salary). Notice periods apply depending on tenure. Final payouts include notice pay, unused vacation, and pro-rated holiday allowance. Disciplinary Termination requires detailed documentation and court/UWV approval. |
| Tax exemptions | The 30% Ruling: The 30% ruling allows eligible highly skilled expatriates in the Netherlands to receive up to 30% of their gross salary tax-free for up to 5 years. Employers must agree to apply the ruling and include it in the employment contracts if eligible. |
| Health & safety | Employees are required to complete an annual Health & Safety (H&S) training. They must complete this training as part of their onboarding process. |
| Misclassification risk | From Jan 2025, stricter enforcement under the Wet DBA targets false self-employment. Misclassified contractors may trigger fines, back taxes (up to 5 years), and employer liabilities (e.g. sick pay, pension). Risk indicators include long-term scope, lack of autonomy, integration into company operations, and financial protections. No warning period for unintentional breaches. |
| Data protection & IP protection | Employers must comply with the GDPR when processing personal data—including names, BSNs, health details, and employee records. You must justify data use, limit access, retain only what’s necessary, and secure data against loss or misuse. Report data breaches within 72 hours. IP rights (e.g. trademarks, copyrights, patents) require registration or documentation to enforce ownership. |
Continuous Compliance™
How much does an EOR in the Netherlands cost?
When you hire employees in the Netherlands through an EOR, your total employment cost includes gross salary, statutory employer costs, and EOR service fees. Deel EOR's flat fee model means you pay one predictable monthly rate per employee, with no hidden mark-ups.
Here’s a breakdown of the costs you’ll face when opening your own Dutch entity compared to hiring through Deel EOR:
| Factor | Your own Netherlands entity | Deel EOR |
|---|---|---|
| One-off costs | €36,407 up-front | £0 |
| Annual, recurring costs | €48,681 | £0 |
| Deel Employer of Record service fee | N/A | €6,217 per employee |
| Estimated total annual costs | €85,088+ | €6,217 |
| Time to first hire | 3 months | 2 business day(s) |
With Deel EOR's transparent pricing, you avoid entity setup and variable costs—so you scale without surprises.
Check our Employee Cost Calculator to see the full cost of hiring talent in the Netherlands, including salary, taxes, pensions, and statutory fees.
Global Hiring Toolkit
Which Netherlands EOR should you choose?
Before you partner with an Employer of Record in the Netherlands, evaluate potential providers across three criteria:
- Entity ownership: Ensure the EOR operates a wholly-owned Dutch entity to reduce intermediary risk and extra costs
- Compliance expertise: Look for real-time compliance monitoring, local labor law specialists, and up-to-date misclassification case law alerts, like those provided by Deel's Compliance Hub.
- Platform breadth: Prioritize an EOR provider that handles everything from job requisitions and background checks to global payroll in 150+ countries, benefits management, equity grants, IT deployment, and mobility services.
Choose an EOR that ticks all three boxes to streamline hiring, lower risk, and accelerate your growth in the Netherlands.
See also: Owned Entity vs. In-Country Partner: The Best Choice for Global Hiring
Discover how Keyrock scaled global hiring with Deel
Keyrock is at the forefront of the tokenized economy, delivering financial products and services. With operations running around the clock they require a globally distributed workforce to cover diverse time zones. But limited legal presence in key regions made international hiring a logistical and compliance challenge. That’s why they turned to Deel EOR.
"Deel has not only streamlined our hiring process but also empowered us to access talent we couldn’t have reached otherwise. It's a true game-changer for a global company like ours." — Rebecca Neal, Keyrock
Is Deel Employer of Record a strong choice for hiring in the Netherlands?
Yes. Deel is a leading Employer of Record in the Netherlands, combining a wholly-owned local entity with in-house Dutch labor law expertise. Rated the #1 EOR on G2 for user satisfaction and market presence, Deel enables fast, compliant hiring—no entity setup, no hidden fees.
With Deel, you get access to:
- A wholly-owned Dutch entity that guarantees direct compliance and reduces intermediary risks and costs
- Automated contract generation and onboarding aligned with Dutch labor laws and collective agreements
- Streamlined global payroll in 150+ countries that includes tax withholding, pension auto-enrolment, and covers all statutory employer costs, including social security contributions (18%–28%)
- Fast onboarding—hire employees in days, not months
- Transparent, flat-fee pricing with no surprise markups
- Full GDPR compliance and IP ownership protection via Deel IP Guard
- Real-time compliance alerts with Deel Compliance Monitor
- Workforce planning and reporting tools
- Essential team collaboration, engagement, and performance tools
Deel EOR lets you focus on growing your team while we handle local employment complexities.
See also: More Than a Service: EOR as a Strategic Partner in Business Growth
Hire employees in the Netherlands confidently with Deel Employer of Record
Deel’s Employer of Record service lets you hire Dutch employees in days—no local entity required. Automate contracts, payroll, and compliance through a single platform built for scale.
Get full cost transparency with no hidden fees, plus access to Deel’s global infrastructure across 150+ countries.
Don’t let entity setup slow you down. Book a demo to see how Deel simplifies compliant hiring in the Netherlands and beyond.
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FAQs
How quickly can Deel onboard employees in the Netherlands?
Typically, within days, bypassing months-long entity registration.
Do employees need a local bank account?
Yes, employees must provide Dutch bank details for payroll.
What type of contracts does Deel use?
Deel provides Dutch-compliant fixed-term or permanent employment contracts with probation periods up to two months.
How does Deel handle tax withholding?
Deel withholds wage tax and social security contributions per Dutch law each payroll cycle.
When are payroll deadlines?
Payroll is processed monthly, with timely filings to the Dutch Tax Authority by the due date.
Are statutory benefits covered?
Yes, including vacation, sick leave paid up to 70% of salary, maternity and paternity leave, and pension contributions.
Can Deel manage collective labor agreement requirements?
Yes, Deel adapts contracts and benefits to applicable collective agreements.
What about GDPR compliance?
Deel fully complies with GDPR, ensuring secure handling of payroll and personal data.
How does Deel protect intellectual property?
IP ownership defaults to the employer, with contractual safeguards in place.
What if I want to hire in multiple countries?
Deel supports hiring in 150+ countries through a unified global people platform and wholly-owned entities.
About the author
Jemima is a nomadic writer, journalist, and digital marketer with a decade of experience crafting compelling B2B content for a global audience. She is a strong advocate for equal opportunities and is dedicated to shaping the future of work. At Deel, she specializes in thought-leadership content covering global mobility, cross-border compliance, and workplace culture topics.
