If you are dissatisfied with the website or any content or materials on it, your sole exclusive remedy is to discontinue your use of the website. In the Netherlands, 532 companies participated in the annual salary survey. Could you help? Now were into the good stuff. One such site is the Salariskompas from Intermediair (in Dutch). What Is the Dutch Minimum Wage? Yep, thats a real advantage of life here. Employers will usually make the initial payment and reclaim it from the Employee Insurance Agency (Uitvoeringsinstituut Werknemersverzekeringen, UWV). A permanent contract with an unlimited term can only be terminated by the employer with the consent of the employee, UWV WERKbedrijf or the court. Holiday leave, sick leave, maternity, paternity, parental and care leave are covered in this handy work leave guide. If your salary includes a 13th month then you will essentially receive an extra months pay! Public holidays falling on weekends are lost. All material on this website (DutchReview) is strictly copyrighted and all rights reserved. While the Netherlands may rank as one of the best-paying countries in the world, its important to note that the amount that you get paid of course depends on the type of wage you are receiving. Netto salaris represents the money you get to keep after tax and all other deductions. * Note: Adams Multilingual Recruitment cannot provide visas to internationals who are looking for work. This disparity can largely be attributed to many women working in underpaid social sectors, such as care, welfare, and education. Good for you, thats a courageous move and were proud now lets get down to business and talk Dutch salaries. These include overtime pay, profit shares, and end-of-the-year bonuses. She still cant jump on the back of a moving bike. However, there is an important exception to this. Work between the first and last day of the month is typically paid on the last day of the month. Now, after all that talk of Netto and Brutto salaries, youre probably wondering just how big a bite the Dutch tax system will take out of your wages. Social security premiums can include: According to the Centraal Planbureau (CPB), in 2023, the median gross income for a person working in the Netherlands is 38.500euros gross per year. Prenatal leave: An employee must take 4-6 weeks of leave before the expected due date (zwangerschapsverlof). In the Netherlands, the minimum wage (wettelijk brutominimumloon) for employees 21 years and over is 1,934.40 per month. Courts are, however, very reluctant about accepting summary dismissals under Dutch labor law. It is usually given before the holiday period in November or December and also equals to 8.33% of an employees salary. Subscribe to be the first to know about company news, updates, promotions, and more. And we dont blame you. We turn to the experts when it comes to all things about employment and recruitment in the Netherlands: Undutchables! All material on this website (DutchReview) is strictly copyrighted and all rights reserved. Sorry for bothering. What confused you the most when you received your Dutch payslip? 80% of these homes are rented out to people with incomes no higher than36,165, with 10% of these homes for incomes between36,165 and 40,349. However, life is often, well, not average and the same goes for your salary. We turned to the experts on all things related to working in the Netherlands Adams Multilingual Recruitment. Additionally, specific conditions must be met for employees to work from home, including having at least 10 employees, being employed for a minimum of six months, and submitting a written request at least two months before the intended start date. Postnatal leave: A employee must take the remaining 10-12 weeks (bevallingsverlof)) which starts from the date of the birth of the child. A CAO operates at company or industry sector level and the provisions (number of holidays, for example) are often more generous than statutory requirements. There is, however, one exception to this rule; if an employee is not able to take holidays, for instance, due to sickness or workload. Learn how your comment data is processed. The sun is beating down your neck, and you don't have a care in You have entered an incorrect email address! Payroll and Benefits Guide Netherlands Last updated: May 02, 2023 Currency Euro (EUR) Employer Taxes 37.81% - 50.09% Payroll Frequency Monthly Employee Costs 27.65% Capital Amsterdam Date Format dd/mm/yyyy Fiscal Year 1 January- 31 December Download PDF guide Get a Demo Learn How to Comply with Local Labour Law Table of contents Contributions The Netherlands boasts an average monthly salary of drum roll please 3,333 in 2023 or an average annual salary of 40,000! Comparatively, the Netherlands has one of the highest minimum wages in Europe (EU), similar to Belgium. Are there any rules which state that every year the salary must be revised? Stereotypical accusations include that women should work more hours and learn to negotiate better. Indefinite contracts can have a maximum of 2 months probation, Temporary contracts under 6 months may not include a a probation period, Temporary contracts of 6 months to 2 years can have a maximum of 1 month probation, During the probation period, there is no notice period. In the Netherlands, there are two different tax brackets in 2023. Young people who cannot work due to a disability or severe illness can claim WAJONG benefits. In addition to your salary, you are entitled to paid vacation days by law. What may be a surprise to some, is that the minimum wage in the Netherlands actually varies based on your age. In addition to your standard monthly salary, in the month of May, you will receive a holiday allowance equivalent to 8% of annual earnings (roughly one months salary). Is there an official document which states anything about this. Minimum wage and average salary in the Netherlands. Four out of ten (38%) businesses found their pay budget is now higher than they projected. This amount is then paid out every year in May. 23,400 EUR All salary figures displayed here are per month except when noted otherwise. Your net income (netto salaris) is your salary after income tax, social security payments and contributions for your pension have been deducted. Yep, thats a real advantage of life here. But in the Netherlands, some companies offer what has been coined the 13th month under certain contracts (spoiler: the better ones.). Note: If you are an intern, a freelancer, or earn three times the Dutch minimum wage, you are not eligible for holiday pay in the Netherlands. I want to know if Holiday allowance is included in my eligible earnings for annual bonus calculation. In that case, head on over to your HR department and theyll be able to clear it all up for you! Salaries can vary drastically among different job categories. Maternity pay is 100% of the workers daily wage based on the previous years average earnings, capped at 256.54 Euros per day. The salary that your employer offers may be the figure before deductions such as tax, benefits, and your pension are taken be sure to clarify this! Employees should be able to take holidays during sickness in order to get a break from reintegration activities. With living costs rising by as much as 14.5% towards the end of 2022, many of us entered the new year with an intense need for a pay raise. If you are sick for a long period of time, you dont have to worry about your employer dropping you. In other words, if the minimum wage for adults is 1000, then the minimum wage for 20-year-olds would be 1000 minus 20% = 800. If the Labor Authority agrees with you, your employer will be fined up to 10,000 per employee and forced to pay your outstanding wages within four weeks. +0.02 +0.14%. Whilst every effort has been made to ensure accuracy, the publisher cannot accept responsibility for omissions and errors. It is usually given before the holiday period in November or December and also equals to 8.33% of an employees salary. For the first two months you get 75% of your last earned salary, and thereafter 70%. The law does not distinguish between employees who are fit or unfit for work; both groups will accrue the same number of vacation days in the Netherlands and minimum Netherlands holiday pay. Dutch businesses are under pressure to do more on pay. The Netherlands Labor Authority (Arbeidsinspectie NLA) can issue a penalty if the intern is exploited. There are also several other components that do not count towards the minimum wage. This law enables the ongoing payment of salary for up to 104 weeks of sickness at (a minimum of) 70% of the salary. Employees in the Netherlands get at least 20 holiday days per year and a holiday bonus month (8% of annual salary) which is paid out in May. Luckily, weve broken down all that difficult vocab for you. This is because it setting a standardized rate for project-based work is often difficult. Picture one of those cycle bins that catch cyclists rubbish as they zoom by. Sarah originally arrived in the Netherlands due to an inability to make her own decisions she was simply told by her mother to choose the Netherlands for Erasmus. . If you are dissatisfied with the website or any content or materials on it, your sole exclusive remedy is to discontinue your use of the website. Employers must legally pay you the minimum wage as set by the government. In any job, there is always the chance that you may receive a bonus. Heres a quick rundown: The start date of your contract with the company. One way to begin your journey is by turning to the international recruitment agencies. For the period 2022-2025 it is projected to be 41,000. In this case, your holidays will not lapse until after a period of five years. This is the total monthly salary including bonuses. The website may provide links to other websites on the Internet, the content of which is not in our control. Depending on your home and work income, you will be taxed a certain percentage. Be sure to check the net amount as there is a quite a difference between the two values. This is also agreed upon beforehand in the employment contract. Turn your payroll data into powerfully actionable business insights across your entire organization, Automated data consolidations for all worker types and stages of onboarding and employment, End-to-end integration with the exact capabilities your organization needs swift and seamless, Expand globally with our team of compliance specialists, Compete for global talent with first-class incentivization, Offer the most highly regarded employee benefits, regardless of location, Legal peace of mind with an increasingly mobile workforce, Top global standards of privacy and security protections, See how Datadog gained control and visibility over their global payroll, See how Cato Networks optimized their global payroll processes, Global workforce management from onboarding topayments inone platform, How To Turn Payroll Data Into Business Insights, Whitepapers, eBooks, infographics, webinars, videos & more, All the global payroll & payments terms you need to know, Updated global employment expense breakdowns, The ultimate handbook for enterprise global payroll, WAO/WIA Aof : Invalidity Insurance Fund 5.49% (small employers %) to 7.11% (medium to large employers), Unemployment Fund (lower: indefinite contracts, High: temporary contracts/on-call employees, ZVW : Healthcare Insurance Act (maximum contribution income EUR 66,956.00). One of the most important things to understand about your Dutch salary is the difference between your gross and net salary. Join the Regus global community and find the perfect place to work. Now, after all that talk of Netto and Brutto salaries, youre probably wondering just how big a bite the Dutch tax system will take out of your wages. A quick note first: weve dug and dug to find the most terms, but its possible your payslip uses a different structure or terminology. To ensure safe and proper working conditions, health and safety regulations apply, and you should provide information and a suitable workspace for employees. It means Internet Allowance is Input = Output, Correct? The Dutch labor law system for dismissal is particularly unusual, as it is very protective of employees: in most cases, the employer needs permission from the labor office, known as UWV WERKbedrijf,or the courtto fire you. 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