How much does an employee cost on top of gross salary in the Netherlands?

As a rule of thumb, Dutch employer costs add roughly 27.7% on top of gross salary, including 8% holiday allowance and statutory social contributions. A mandatory pension scheme typically adds around 15.2% of the pensionable base, and sick-leave insurance is optional at about 5%.

Who pays a sick employee in the Netherlands?

The employer continues paying at least 70% of salary for up to 104 weeks of illness and must fund re-integration under the Wet verbetering poortwachter. Through ICS Payroll this risk can be transferred, with sick-leave insurance covering the wage continuation.

PAYROLL

Payrolling: shift employer risk to us.

True Dutch payrolling is more than processing payslips. We take over the employment contract and the statutory liabilities that come with it - 2 years of sick pay, re-integration obligations, dismissal protection, pension and CAO compliance. You keep the talent and the direction; we carry the risk.

Monthly run

Gross-to-net calculation, payslips in EN/NL, SEPA payment files, journal entries for your bookkeeping.

Compliance

Wage tax (loonheffing), employee insurance (UWV), pension funds, CAO interpretation, year-end statements.

Expats

30% ruling application and renewal, A1 certificates, cross-border salary splits.

EMPLOYER RISK TRANSFER

The risks we absorb

Under Dutch law, the legal employer carries some of the heaviest obligations in Europe. With our payrolling model, our entity is the legal employer of record - so those obligations sit with us, not with you.

Sick pay (2 years)

Dutch employers must continue paying up to 170% of salary for two years of illness. We carry this liability, insurance-backed.

Re-integration (Wet Poortwachter)

Mandatory case management, company doctor, action plans and UWV reporting during long-term absence - fully handled by us.

Dismissal & severance

UWV/kantonrechter procedures and statutory transition payment (transitievergoeding) sit with us as legal employer.

Pension & CAO

Mandatory sector pension funds and Collective Labour Agreement obligations - applied, paid and audited on our books.

WGA / WIA & social premiums

Differentiated WGA premiums and disability claims stay on our payroll, protecting your cost base from individual claim history.

Wage tax & UWV liability

Loonheffing filings, audits and any Belastingdienst/UWV correctional assessments are our responsibility, not yours.

Speak to a specialist

No call centre. One fixed point of contact.

Director of ICS Staffing & Payroll, responsible for Employer of Record and Dutch payroll engagements, with over twenty years of commercial and payroll leadership.

Talk to an expert View profile

Joost Hubregtse - Director, ICS Staffing & Payroll — Joost HubregtseDirector, ICS Staffing & Payroll“Talk to me directly about your Dutch payroll or Employer of Record setup.”

Dutch payroll - common questions

Dutch payroll covers monthly payslips, withholding and filing of loonheffingen with the Belastingdienst, pension contributions, 8% holiday allowance accrual, holiday-hour administration, and the annual wage statement. Employers must also observe any applicable CAO.

Start Expansion

Get a detailed quote for EOR or Payroll services within 4 business hours.

Our guarantees

What we commit to

Cancel freely in month one

No lock-in during the first month. If the fit is wrong, you walk away without penalty.

100% compliance guarantee

Contracts, payslips and filings meet Dutch law. If we get it wrong, we fix it and carry the cost.

Fixed price, no hidden fees

One agreed rate covers payroll, taxes, insurances and our service. No surprise line items.

Offer within 2 working days

Send us the headcount and salaries; you get a written quote within two working days.

Explore further

SolutionsFour routes into the Dutch market.View →Remote hireHire one person in the Netherlands.View →ExpansionBuild a Dutch team without an entity.View →RelocationMove a team and their families.View →EOR sponsorshipIND recognised referent included.View →30% rulingEligibility, salary norms, application.View →InsightsGuides on Dutch employment.View →ComplianceStandards, audits and safeguards.View →Editorial standardsHow we source and fact check.View →