Employer of Record in the Netherlands

For companies building teams of 10 or more in finance, accounting, HR/payroll, BD, operations, or IT — not for individual hires.
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Why companies build teams in the Netherlands

Lundi's Dutch hub — Amsterdam for tech, design, and international HQ presence; Eindhoven for deep tech; Rotterdam for logistics. Built for companies needing English-fluent European talent, the 30% ruling for inbound hires, and Europe's most internationally-oriented business culture.

Languages

Dutch

Payroll Frequency

Monthly

Currency

EUR

Capital City

Amsterdam

Employer Tax Rate

35.00%

The Netherlands is Europe's most international by default — English is the working language in tech, design, and corporate functions; the 30% tax ruling makes inbound hires economically efficient; employment law is relatively flexible compared to Germany or France. Amsterdam is the gravity centre, but Eindhoven (deep tech/ASML) and Rotterdam (logistics) offer specialised depth. Employer costs run ~22–25% above gross — significantly lower than Germany or France. Strong fit for SaaS, fintech, design, and international-HQ functions. For companies building teams of 10+, not individual hires.

Why companies build teams here

The Netherlands is Europe's most credible alternative to London for international companies needing English-fluent European talent without the Brexit complications, the high cost, or the senior-talent concentration of UK fintech. Amsterdam has built an unusually international tech and product ecosystem over the past 15 years.

Three operating hubs, three different specializations.

Amsterdam is the tech, design, fintech, and international HQ hub. Adyen, Booking.com, ING, Philips, TomTom, MessageBird, Mollie. Strong product, design, engineering, and customer success talent. English is the working language in most professional roles — Dutch professionals often communicate at near-native English level.

Eindhoven is the deep-tech capital — ASML (the world's leading semiconductor lithography company), Philips Research, plus a deep hardware and embedded systems ecosystem. Strong fit for hardware engineering, embedded software, and deep-tech roles.

Rotterdam is the logistics, port-tech, and supply-chain hub. Strong fit for logistics-tech, trade-related, and operations roles.

Operating context. Netherlands is on CET — full European overlap, morning overlap with US East Coast. English proficiency among Dutch professionals is among the highest globally — EF EPI consistently ranks Netherlands #1 or #2 worldwide for non-native English. The 30% ruling for inbound hires (see Employment Structure) makes the Netherlands particularly attractive for relocated senior talent. Netherlands vs Germany: Netherlands wins on English-fluency and employment flexibility; Germany wins on industrial-tech depth and broader talent scale. Netherlands vs UK: similar cost level; Netherlands wins on Brexit-free EU access and CET working hours; UK wins on senior fintech depth.

Employer cost reality. Total employer-side contributions run ~22–25% above gross: WW (unemployment), WIA (disability), Zvw (healthcare contribution), pension contributions, plus holiday allowance (8% of annual salary, statutory). Vakantietoeslag (8% holiday bonus) is paid in May. All-in employer cost typically lands ~25–30% above gross. Mid-level engineers in Amsterdam run €60,000–€85,000/year gross; senior engineers €85,000–€125,000; engineering leads €120,000–€170,000+.

Employment Structure: EOR, Entity, or Build–Operate–Transfer

Dutch employment is governed by the Burgerlijk Wetboek (Civil Code) book 7 and the Wet werk en zekerheid (Work and Security Act). It is more protective than the UK but more flexible than Germany or France — a balanced regime that international employers find workable.

EOR works well up to 20–25 headcount. Lundi's Dutch employment infrastructure handles UWV registration, loonbelasting withholding, pension administration (typically via PME or sector-specific funds), holiday allowance accrual and payment, and ziektewet (sickness law) administration. The EOR ceiling is reasonable in the Netherlands given the standardised employment infrastructure.

BV (Besloten Vennootschap) entity makes sense at scale or when 30% ruling and equity structures matter. A Dutch BV unlocks full control over employment structure, the ability to apply for 30% ruling for inbound foreign hires, and Dutch CIT structures including the innovatiebox (Innovation Box) — 9% effective rate on income derived from qualifying intellectual property versus the 25.8% standard rate.

30% Ruling — the structural Netherlands advantage. Inbound foreign professionals (non-Dutch tax residents in the previous 24 months, with specific skills criteria) can claim 30% of their salary tax-free for up to 5 years (recently reduced from 8 years for new applicants). This creates a meaningful effective compensation advantage for senior hires being relocated to the Netherlands. The 2024 reform tightened qualifying salary thresholds and reduced duration, but the regime remains one of Europe's most generous expat tax structures. Lundi applies the 30% ruling at onboarding for qualifying inbound employees.

Innovatiebox — the IP tax structure. Income from self-developed qualifying intangible assets (patents, software development) is taxed at 9% rather than the standard 25.8% CIT rate. Significant for tech-IP-heavy operations. Requires R&D activity classification (WBSO).

WBSO R&D wage tax credit. The WBSO is a wage tax credit for R&D personnel — typically 32% of qualifying R&D wage costs reimbursable as payroll tax reduction. Material for engineering-heavy teams. Lundi advises on WBSO at entity-setup.

Why HRBP infrastructure matters in the Netherlands. Dutch performance management, ziektewet (statutory sickness — employers bear two years of salary continuation for sick employees), termination via UWV or court approval all benefit from local fluency. Every Lundi Netherlands team includes a named HRBP from day one.

Cost of Employment in the Netherlands

In Netherlands, professional recruitment agency fees range from 22-27% of the first-year annual base salary of a recruited employee. Recruitment agencies also require an upfront retainer and payment in advance installments of the agency fee based on milestones such as start of recruitment, presentation of candidates, and scheduling interviews with a candidate shortlist.

We know this might sound overwhelming—but it doesn’t have to be. A solution like Lundi eliminates the barriers for you. With Lundi, you can recruit talent across 70+ countries, easily managing recruitment—all in one, easy-to-use platform. Get an overview of what you need to know when hiring in Netherlands below.

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Employer Tax Costs in Netherlands

In the Netherlands, all employers must pay the following taxes:

Employee Income Taxes in Netherlands

Employees in the Netherlands are taxed between 8.90% and 51.95% depending on their income bracket. Employees also pay into a pension and long term care on top of this.

Employee Probation in Netherlands

The length of a probation period in the Netherlands depends on the length of the employment contract, but cannot exceed two months.

Employee Overtime in Netherlands

A standard Dutch working week is 38 hours. The majority of full-time jobs in the Netherlands are between 36-40 hours a week, or seven to eight hours a day, five days a week.Across a four-week period, an employee may not work more than 55 hours per week, and over a 16-week period an employee may not work more than 48 hours per week.Overtime is not common in the Netherlands. Compensation for overtime depends on your contract.

Employee Notice in Netherlands

For employees in the Netherlands, less than five years of employment requires a notice period of one month, between five and 10 years of employment requires two months, between 10 and 15 years of employment requires three months, and 15 years of service or more requires four months notice.

Termination in Netherlands

Employees in the Netherlands can only be dismissed by mutual agreement or for a justified reason authorized by the Employee Insurance Agency (UWV) after the probationary period has passed.‍When dismissal is done by mutual consent, severance payments are often required. Typically, the amounts for severance by mutual agreement can be equivalent to 3-6 months of salary or more. If dismissal is mutually agreed upon, the company doesn't need to pay an additional transition payment.‍An employer may be required to pay severance payment to the employee if:The employment (indefinite term or temporary) terminates at the initiative of the employer, andThe termination is not for serious cause, andThe termination does not take place after the retirement ageAn employee has 14 days to reconsider the termination agreement. During this time, they can withdraw their consent.‍When an employee is given notice of termination by permission from the UWV (the Employee Insurance Agency), a transition payment in the amount of one third of the gross monthly wage per year is paid to the employee. In 2022, transition payments are capped at €86,000.

How Lundi works in the Netherlands

Build

We scope your team and recruit the right people in-country — finance, accounting, HR/payroll, BD, ops, or IT.
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Operate

We employ the team via our local entity and run the day-to-day — payroll, compliance, HR, and performance management.
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Transfer

When you're ready, we transition the team to your own legal entity. Or stay on Lundi's infrastructure indefinitely — your choice.
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Why Companies Choose Lundi

If you need help with anything, we're here for you

Who is Lundi for?

Lundi works with companies building international teams of 10 or more — typically in finance, accounting, HR/payroll, BD/sales, operations, or IT. Not for one-off hires or individual placements.

How is this different from an EOR?

EOR platforms employ individuals for you. Lundi recruits, employs, and operates concentrated teams — including day-to-day management, HR, and an optional path to your own entity. It's the operating model for companies that have outgrown the EOR ceiling.

Still have any questions? Talk to us.