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EOR Netherlands
Employer of Record Netherlands
Many international companies choose the Netherlands as their EU market entry point. Our EOR service — locally known as payrolling — enables you to hire Dutch employees quickly and compliantly, without opening a Dutch BV. We employ your Dutch team on your behalf while you retain full day-to-day management control.
- NSA Certified
- IND Recognised Sponsor
- Wet DBA Compliant
- Onboard in Days
Capital
Amsterdam
Official language
Dutch (English widely spoken)
Currency
€ Euro (EUR)
Working hours
36–40 hrs/week
Public holidays
11 days/year
Min. hourly wage
€14.71 (age 21+, 2026)
Min. paid leave
20 days statutory
Vakantiegeld
8% of annual gross (paid May)
Tax year
1 Jan – 31 Dec
Sources: Belastingdienst — Loonheffingen · Rijksoverheid — Minimum wage · Holiday & Vakantiegeld
“Many international companies come to us after realising that employment law in the Netherlands is far more complex than expected, especially around vacation money, dismissal procedures or fixed-term contracts. Our role is to make hiring in the Netherlands fast, compliant and hassle-free for our clients.”
— Juul Seuren, HR Consultant at ThisWorks
What is an Employer of Record in the Netherlands?
An Employer of Record (EOR) in the Netherlands — locally referred to as payrolling — is a third-party organisation that legally employs workers on behalf of another company.
Using EOR services allows international companies to hire employees residing in the Netherlands without establishing a local legal entity. Under Dutch employment law (Burgerlijk Wetboek — Civil Code), the EOR becomes the employee’s legal employer, while your company manages daily tasks and overall performance.
Read more in our detailed guide: What is an Employer of Record (EOR): 2026 Guide
Compliant Dutch contracts
Loonheffing management
Social insurance (WW/WIA/ZW)
Vakantiegeld (8%) managed
Pension obligations
Wet DBA compliance
Payslips & payroll reporting
UWV dismissal procedures
IND immigration support
💡 Zzp / Wet DBA note: If your company has been using Dutch freelancers (Zzp workers), an EOR is the fastest, cleanest transition path to compliant employment following January 2025 enforcement.
Why Use an EOR in Germany?
The Netherlands is the most popular EU market entry point for UK and US companies — offering a highly skilled, English-proficient workforce, central EU location and world-class infrastructure. But Dutch employment law is among the most regulated in Europe.
EU Market Entry
Enter the Dutch & EU market faster
Setting up a Dutch BV requires a notary deed, KvK registration, Belastingdienst setup, bank account and ongoing admin. EOR onboarding takes days — not weeks or months.
- No notary fees or KvK registration
- No Belastingdienst loonheffing registration
- No Dutch bank account required
Wet DBA — Urgent
Comply with Zzp reform immediately
Belastingdienst has been actively auditing Zzp contractor arrangements since January 2025. Companies found to have misclassified workers face backdated loonheffing, social contributions and fines.
EOR is the fastest way to transition Dutch contractors to compliant employment.
Complex Law
Navigate complex Dutch employment law
When hiring in the Netherlands, international companies are often surprised by strict dismissal procedures, mandatory vakantiegeld (8% on top of salary), complex fixed-term contract rules and sick leave obligations.
What is Wet DBA and how does it affect your company?
Wet DBA (Deregulering Beoordeling Arbeidsrelaties) is Dutch legislation designed to determine whether a working relationship should be classified as employment rather than self-employment. Crucially, authorities focus on the actual working relationship, not just the written contract.
If a contractor relationship is deemed disguised employment, companies may face:
- Backdated loonheffing (payroll tax) liabilities — up to 5 years
- Social security contribution repayment
- Financial penalties and interest
An EOR provides the fastest and cleanest way to transition Dutch contractors to compliant employment. Belastingdienst — Wet DBA guidance →
“We had engaged a few Dutch contractors under a Zzp setup for over a year, but with the renewed Wet DBA enforcement in 2025, we realised the arrangement might not be sustainable long term. Since the contractors were integrated into our day-to-day operations, we wanted to reduce the compliance risk for both the business and the workers themselves. Moving to an EOR structure through ThisWorks allowed us to formalise the employment relationship without having to establish a Dutch entity.”
— Head of Operations, US fintech company
Why Use an EOR in the Netherlands?
Faster hiring than a Dutch BV
BV registration via KvK, notary deed, Belastingdienst setup and bank account opening takes weeks. EOR onboarding typically takes days — so you can secure the right candidate before competitors do.
Loonheffing fully managed
No Belastingdienst registration needed. The EOR calculates, withholds and remits all Dutch payroll tax (loonheffing) and social insurance contributions on your behalf.
Zzp / Wet DBA compliance
Transition Dutch contractors to compliant employment immediately. With enforcement active since January 2025, EOR is the fastest, most reliable route to compliance.
Dismissal protection managed
Dutch dismissal law is among the most complex in Europe. The EOR manages UWV procedures, notice periods and mandatory transition payments (transitievergoeding) on your behalf.
Vakantiegeld handled correctly
The mandatory 8% holiday allowance on top of salary is the most commonly missed Dutch employer obligation. The EOR ensures it is calculated, paid and documented correctly — typically in May.
Scalable & flexible
Particularly useful for companies testing the Dutch market, remote-first teams, or project-based hiring. Scale up or down without structural changes or entity overhead.
“Many international employers are surprised by how different Dutch employment law is in practice. The two areas we most commonly see companies overlook are vakantiegeld and dismissal procedures. We recently supported a client who assumed that holiday pay was already included in the employee’s salary — common in some countries. In the Netherlands the 8% vacation pay must be handled separately. We also often speak to companies that are not aware how formal Dutch termination procedures can be. In many cases involvement from UWV or the court is needed. That is usually when companies realise they need local support.”
— Asuka Obster, HR Consultant at ThisWorks
Hiring Employees in the Netherlands: What You Need to Know
Dutch employment law is detailed, employee-protective and highly structured — particularly around contracts, payroll and dismissal. Below is an overview of the key areas international employers need to navigate. See our Netherlands hiring guide for more.
Employment Contracts
Dutch law recognises two main contract types:
- Bepaalde tijd — fixed-term contract
- Onbepaalde tijd — permanent (vast) contract
Fixed-term contracts are regulated by the ketenregeling (chain rule): after 3 consecutive fixed-term contracts, or 3 years of continuous employment, the contract automatically becomes permanent. Contracts are consecutive if the break between them is less than 6 months.
Contracts must include: salary, working hours, role description, probation period, notice period, holiday entitlement and vakantiegeld.
Working Hours & Leave
Standard working week: 36–40 hours (sector dependent). Maximum: 12 hours/day, 60 hours/week, averaging 48 hours over 16 weeks. Daily rest of 11 hours and weekly rest of 36 consecutive hours must be observed.
- Minimum 20 days annual leave (full-time; most employers offer 25+)
- Vakantiegeld: 8% of annual gross salary — mandatory, typically paid in May
- Must be separately documented in employment agreements
Loonheffing & Social Contributions
The Dutch payroll system includes mandatory tax and social security contributions known as loonheffingen. Employers are responsible for withholding and remitting these to Belastingdienst.
| Contribution | Purpose | Who pays | Notes |
|---|---|---|---|
| Wage tax (loonbelasting) | Statutory income tax | Withheld from employee | Administered by employer; progressive rates |
| ZVW (Health Insurance Act) | Dutch healthcare system | Employer contribution applies | Employee also pays income-dependent contribution via payroll |
| WHK (Return-to-Work Fund) | Sickness & disability benefits (ZW/WGA) | Variable per employer | Based on company risk profile |
| AOF (Invalidity Insurance Fund) | Long-term disability, parental leave | Employer rate applies | Varies by employer risk category |
| AWF (Unemployment Fund — WW) | Unemployment insurance | Higher rate for standard contracts | Rate depends on contract type |
| WKO (Childcare Act) | Childcare system contribution | Fixed employer contribution | Mandatory for all employers |
For international employers unfamiliar with Dutch payroll administration, calculating and reporting these contributions correctly can be challenging. An EOR manages all payroll tax calculations, social contributions and reporting obligations from day one.
How Our EOR Service Works in the Netherlands
Expanding into the Netherlands doesn’t have to be complex. With our EOR service, you can hire compliantly without setting up a Dutch BV. Learn more about the team behind ThisWorks.
1
Finding the right employee
You identify your business needs and find the best candidate — or transition an existing Zzp contractor. We can also support you with Dutch salary benchmarking and recruiting services.
2
Onboarding locally
We provide a Dutch-compliant employment contract (bepaalde or onbepaalde tijd) and handle all required registrations, including loonheffing setup with Belastingdienst.
3
Payroll & loonheffing management
We calculate and withhold all loonheffing (payroll tax) and social security contributions, remit payments to Belastingdienst on time, and provide monthly payslips.
4
Benefits & vakantiegeld administration
We manage all statutory benefits including pension obligations, vakantiegeld (8% holiday allowance), and sick leave obligations — ensuring all Dutch law requirements are met.
5
Compliance & support
Our Dutch specialists monitor regulatory changes, manage any UWV or dismissal procedures, and support you and the employee throughout the employment lifecycle.
Hire with a Dutch EOR today!
With ThisWorks, your business can easily hire employees in the Netherlands with our EOR solution. If you have an entity, our Global Payroll solution takes care of payroll and compliance for your direct employees.
EOR vs Setting Up a BV in the Netherlands
A Dutch BV (Besloten Vennootschap) can be set up with as little as €0.01 in share capital — but this is where international companies get caught out. The ongoing obligations are significant: KvK registration, Belastingdienst loonheffing and BTW registration, annual accounts, corporate tax filings and Dutch bookkeeping standards (NL GAAP).
| EOR (via ThisWorks) | Dutch Entity (BV) | |
|---|---|---|
| Set-up time | ✓ A few days | Several weeks to several months |
| Cost | ✓ Low upfront, predictable monthly fee per employee | High setup + ongoing accounting, payroll and compliance costs |
| Effort / burden | ✓ Minimal — payroll, contracts and compliance outsourced | High — payroll, admin and legal managed by your team |
| Loonheffing / KvK / Belastingdienst | ✓ Included in EOR setup | Separate registrations required from you |
| Flexibility | ✓ Easy to scale up or down without structural changes | Flexible but scaling requires internal capacity and admin |
| Control | Employment handled by EOR provider | ✓ Full legal and operational control |
| Compliance risk | ✓ Handled by experienced Dutch EOR team | Your company takes full responsibility |
| Best suited for | Market entry, testing or building initial Dutch team | Established, long-term operations with larger local presence |
Many companies start with an EOR to enter the Dutch market quickly and transition to a BV once the market is proven. If your company decides to take that step, ThisWorks can also support entity setup.
Cost of Using an Employer of Record in the Netherlands
The cost of using an EOR in the Netherlands depends on several factors, but for many international companies it is more practical and cost-efficient than establishing a Dutch BV — particularly for initial hires, smaller teams or market entry.
Percentage of Salary
Some providers calculate fees as a percentage of the employee’s gross salary. While straightforward at lower levels, costs increase significantly as compensation rises — less predictable for scaling teams.
Fixed monthly fee per employee
A fixed fee per employee per month provides predictable, budgetable costs. No surprises from legal, accounting or compliance overhead — plan your Dutch expansion with confidence.
Why Choose ThisWorks for EOR in Germany?
When hiring in the Netherlands, choosing the right EOR is more than payroll processing. You need a partner that understands Dutch employment regulations and provides a reliable experience for both your business and your employees.
SNA Certification
ThisWorks EOR Services B.V. is registered with the Labour Standards Register (SNA — Stichting Normering Arbeid), confirming compliance with Dutch tax, labour and social security laws. CoC number: 77332962.
IND recognised sponsor
ThisWorks is a recognised sponsor with the Dutch Immigration and Naturalisation Service (IND), allowing us to support eligible employees through Dutch work permit and residence permit procedures. Find out more →
Fast onboarding
Once all required information and documentation is provided, we can typically onboard employees within a few days — no waiting for entity setup, payroll registration or lengthy admin.
Transparent pricing
Germany offers a highly skilled, specialised workforce. With an EOR you are not limited by geography or legal complexity when hiring.
Zzp reform specialists
Our team has supported multiple companies transitioning Dutch Zzp contractors to compliant EOR employment following the January 2025 Wet DBA enforcement. We know the process inside out.
ThisWorks EOR Services B.V. — SNA Certified
The Board of the Labour Standards Foundation confirms that an accredited inspection body has established that ThisWorks EOR Services B.V., Nijmegen meets the standards as laid down in the SNA Standards Manual and has therefore been included in the Labour Standards Register.
Recognised sponsor for Dutch work permits
Not every Employer of Record can support employees who require immigration sponsorship in the Netherlands. ThisWorks is a recognised sponsor with the Dutch Immigration and Naturalisation Service (IND), allowing us to support eligible employees through Dutch work permit and residence permit procedures. Find out more about our immigration services →
Netherlands EOR FAQs
What is the Wet DBA (Zzp reform) and does it affect my company?
Wet DBA (Deregulering Beoordeling Arbeidsrelaties) is Dutch legislation designed to determine whether a worker should be classified as an employee. The law aims to prevent situations where workers are engaged as contractors while in practice working under conditions similar to employment. Belastingdienst began actively enforcing these rules in January 2025. Companies found to have misclassified workers may face backdated payroll taxes and social security contributions — potentially going back 5 years — plus financial penalties. If your company engages Dutch Zzp contractors in ongoing, integrated roles, an EOR is the recommended transition path.
What is an Employer of Record in the Netherlands?
An Employer of Record is a company that legally employs workers on behalf of another business. In the Netherlands, this arrangement is commonly referred to as payrolling. The EOR handles employment contracts, loonheffing, social contributions, vakantiegeld and ongoing compliance, while you manage the employee’s day-to-day work.
Do I need to set up a Dutch BV to hire employees in the Netherlands?
No. If you use an Employer of Record in the Netherlands you can hire Dutch employees without establishing a Dutch legal entity. The EOR acts as the legal employer on your behalf.
Can I transition my Dutch Zzp contractors to EOR employment?
Yes. The process typically involves ending the contractor arrangement and onboarding the individual as an employee through the EOR. The EOR becomes the legal employer while the employee continues working for your business in their existing role. This resolves Wet DBA compliance immediately and removes ongoing misclassification risk.
What is loonheffing and how does an EOR manage it?
Loonheffing is the Dutch withholding of taxes and social contributions from employee salaries. An EOR calculates, deducts and remits these amounts to Belastingdienst and other relevant authorities on your behalf — including wage tax (loonbelasting), ZVW, WHK, AOF, AWF and WKO contributions.
What is vakantiegeld and is it mandatory?
Vakantiegeld (holiday allowance) is a mandatory payment equal to 8% of annual gross salary. It must be handled separately from the regular salary and is typically paid in May. It must be documented in the employment agreement. This is one of the most commonly missed obligations for international employers — an EOR ensures it is calculated and paid correctly.
How does Dutch dismissal law work and how does an EOR help?
Dutch employment law provides strong employee protection. If an employee does not agree to termination, the employer needs approval from either the UWV (for economic or incapacity reasons) or the cantonal court (for performance or personal reasons). A mandatory transition payment (transitievergoeding) applies from day one of employment. If the correct procedure is not followed, employees can challenge the dismissal in court. The EOR manages the entire termination process in compliance with Dutch law.
Is EOR (payrolling) legal and regulated in the Netherlands?
Yes. Employer of Record (payrolling) services are recognised and regulated under Dutch employment law. To legally operate as an EOR in the Netherlands, a company must be registered with the Dutch Chamber of Commerce (KvK) and comply with SNA standards confirming compliance with Dutch tax, labour and social security laws. ThisWorks EOR Services B.V. holds SNA certification and is registered with KvK (CoC: 77332962).
How long does it take to hire through an EOR in the Netherlands?
In many cases, Dutch employees can be onboarded within a few days depending on documentation and contract requirements — compared to several weeks or months for BV setup.
Ready to hire with a Dutch EOR?
Hiring employees in the Netherlands doesn’t have to mean setting up a Dutch entity or navigating complex payroll and dismissal regulations. Whether you are hiring your first Dutch employee or transitioning an existing contractor, our local specialists can get you started in just a few days.
Imke van Rengs
Team Lead NL at ThisWorks
“Our goal is to remove complexity from Dutch hiring so international companies can focus on entering the market confidently.”
