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Payroll Services in the Netherlands
Looking for a payroll company in the Netherlands? ThisWorks is a payroll provider for Dutch and international employers. We run your monthly payslips, wage tax returns and holiday pay, so your business stays compliant with the Belastingdienst from day one.
- Payroll on time, every month, in euros
- Dutch payroll experts based in Nijmegen
- Works with your Dutch entity or through our EOR service
WHAT WE DO
Payroll services available in the Netherlands
Everything an employer needs to pay people correctly and on time, from the first payslip to the year-end statement.
01
Monthly payroll processing
Gross to net calculations, overtime, bonuses and allowances, processed to a fixed monthly calendar.
02
Payslips (loonstroken)
Compliant Dutch payslips issued to every employee in English or Dutch, with audit ready records.
03
Wage tax returns (loonaangifte)
Your monthly loonheffing return prepared, filed and paid to the Belastingdienst on time.
04
Holiday allowance and year end
Vakantiegeld accrued and paid correctly, 13th month payments where your CAO requires them, and annual statements.
05
Starters, leavers and sick pay
Contract set up, terminations, transition payments and sick pay administration.
06
Expat payroll and the 30% ruling
The tax free allowance applied correctly for eligible international hires. Need a permit first? See our work permit services.
DUTCH PAYROLL ESSENTIALS
How payroll works in the Netherlands
Payroll in the Netherlands is run monthly. Employers calculate gross pay under the employment contract and any CAO, withhold wage tax and national insurance (loonheffing), issue a payslip, and file a monthly return with the Belastingdienst. Employees also receive at least 8% holiday allowance each year, usually paid in May or June.
Holiday allowance is a legal minimum
Employees build up vakantiegeld of at least 8% of gross annual salary, usually paid in May or June. It must also be paid when employment ends early.
Your CAO can add obligations
Collective labour agreements can set pay scales, a 13th month, pension arrangements and extra leave on top of the statutory minimum.
Sick pay duties are long
Employers generally pay at least 70% of salary for up to two years of illness and must follow set reintegration steps.
MonthlyPayroll and wage tax return
8% minimumHoliday allowance (vakantiegeld)
€14.99 / hourMinimum wage, age 21+, from 1 July 2026
31 JanuaryAnnual statement (jaaropgaaf) due
104 weeksMaximum employer sick pay period
27% from 202730% ruling rate falls from 30%
Looking at pay levels? See our guide to the average salary and minimum wage in the Netherlands.
EMPLOYER COSTS
Employer contributions and payroll taxes in the Netherlands
On top of gross salary, Dutch employers commonly pay a further 20% or more in premiums, before pension, depending on sector and contract type.
| 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 |
STAY COMPLIANT
Where Dutch payroll catches employers out
Wet DBA: false self employment
Enforcement of the Wet DBA resumed in January 2025 and the Belastingdienst can now impose fines. If a contractor works like an employee, you can owe back payroll taxes and premiums. See how Employer of Record Netherlands resolves it.
01
Wrong CAO or pension scheme
Missing a binding CAO or sector pension fund creates back payments that can reach back years.
02
Sick pay and reintegration
Missed reintegration steps can lead to a wage sanction, which extends the period you pay.
03
Late or incorrect loonaangifte
The monthly return has fixed deadlines, with penalties for delay or wrong premiums.
04
30% ruling mistakes
Eligibility rules, time limits and a rate change in 2027 make errors easy and costly.
COMPARE YOUR OPTIONS
How to choose a payroll company in the Netherlands
Whether you compare payroll providers or weigh up doing it in-house, these are the questions that matter.
| What to look for | ThisWorks | Local bureau | In house |
|---|---|---|---|
| Dutch payroll tax and CAO expertise | Included | Included | Must hire |
| English speaking support | Yes | Varies | Yes |
| Payroll in more than one country | Six markets | Netherlands only | Manual |
| Works without a Dutch entity | Yes, via EOR | Rarely | No |
| Work permits and entity setup | Same team | Separate supplier | Separate supplier |
| Setup time | Weeks | Weeks | Months |
PRICING
How much does payroll in the Netherlands cost?
Most providers charge per employee, per month. The fee depends on headcount, pay frequency and how much administration you need.
What affects your price
- Number of employees. The fee per head falls as your team grows.
- Pay frequency. Monthly is standard, four weekly may cost more.
- Complexity. CAOs, variable pay, pensions and the 30% ruling add work.
- Add ons. Starters, leavers, sick pay admin and reporting.
- Employer of Record. Priced separately from payroll.
What’s included
- Monthly payroll and payslips
- Wage tax returns and payments
- Holiday allowance and year end
- Dedicated payroll specialist
HIRING FROM ABROAD
Payroll in the Netherlands for foreign companies
To pay employees in the Netherlands, you need to be a registered employer. If your company is based abroad, there are two main routes.
Payroll services
You have a Dutch entityYou employ the team and hold the contracts. We run the payroll, filings and year end reporting.
- You stay the employer
- We manage pay and returns
- Fastest route if you are already set up
Employer of Record Netherlands
No entity neededWe employ your people on your behalf, handling contracts, payroll, benefits and compliance.
- Hire in days without a Dutch company
- We carry the local employer duties
- Move to your own entity later
WHY OUTSOURCE
Benefits of outsourcing payroll in the Netherlands
Stay compliant
Tax tables, premiums and minimum wage changes applied by specialists who work in Dutch payroll every day.
Save internal time
No more chasing monthly deadlines or decoding Belastingdienst requirements.
Lower risk of penalties
Accurate calculations and on time returns reduce late filing penalties and back payments.
Predictable costs
A clear fee per employee instead of hiring and covering in house payroll staff.
English and Dutch support
Your employees get answers to payslip questions in the language they prefer.
Scale across borders
Add payroll in other countries with the same provider. Explore international payroll
“International hires often arrive with questions about the 30% ruling before they’ve even unpacked. We make sure it’s applied correctly from their first payslip, so there are no surprises later.”
– Tarun, Payroll Specilaist for Netherlands at ThisWorks
FAQS
Payroll in the Netherlands: common questions
What are payroll services in the Netherlands?
A specialist provider calculates employee pay, withholds wage tax and premiums, issues payslips and submits the monthly return to the Belastingdienst on your behalf, while you remain the employer.
What is the difference between payroll services, payrolling and an Employer of Record?
With payroll services you employ the team and we run the payroll. In Dutch usage, payrolling means a third party becomes the legal employer of staff you select, and an Employer of Record is the international version of that model. The right choice depends on whether you have a Dutch entity.
Do foreign companies need a Dutch entity to run payroll?
To employ people directly you generally need to be registered as an employer with the Dutch tax authority, which usually means a Dutch entity. Without one, an Employer of Record can employ your team on your behalf.
How much does a payroll company in the Netherlands charge?
Most providers charge per employee, per month. The price depends on headcount, complexity and add ons, so the most accurate route is a quote based on your setup.
What is vakantiegeld and when is it paid?
Vakantiegeld is the holiday allowance. Employees are entitled to at least 8% of gross annual salary, usually paid out in May or June.
What is the 30% ruling?
A tax facility that lets an employer pay eligible international hires a tax free allowance for the extra costs of working abroad. It has eligibility criteria and time limits, and the rate is due to fall to 27% from 2027.
How long does it take to set up payroll?
Setup typically takes a few weeks, depending on whether your entity and tax registrations are in place and how many employees you are onboarding. Speak to our team for a timeline based on your situation.
We're ready to support dutch payroll needs
Manager Backoffice / Payroll at ThisWorks
“Most of the businesses we work with didn’t set out to become payroll experts. They come to us so they can stop worrying about Belastingdienst deadlines and get back to running the company. “
