Employer of record in the Netherlands: the real cost in 2026

EOR, own company or contractor?

There are four ways to work with someone in the Netherlands. Each one fits a different case.

Employer of record

The EOR employs the person for you and runs the payroll. You need no Dutch company. Dutch law sees this as the supply of workers (see the next section).NAU, do you need an admissionChecked 2 Oct 2026

Your own company as the employer

A foreign company can register with the Belastingdienst as an employer and run a Dutch payroll, with no Dutch company. Your company then has all the duties of a Dutch employer (see the payroll section).Belastingdienst, you choose to withhold payroll taxes, Belastingdienst, registering as an employer from abroadChecked 2 Oct 2026

A Dutch company (BV) or a branch

A civil-law notary sets up a BV and registers it with KVK. The starting capital is at least €0.01. A foreign company with a Dutch branch has a permanent establishment and must register in the Handelsregister.Business.gov.nl, the private limited company (BV), KVK, starting a BV, Business.gov.nl, registering a foreign companyChecked 2 Oct 2026

Contractor

The Belastingdienst looks at 3 features of employment: the authority of the employer, the duty to do the work in person, and pay for the work. All facts count. Since 1 January 2025, the Belastingdienst enforces these rules again. Since 1 January 2026, it can give fines for wrong classification in serious cases.Belastingdienst, employment relationships, Belastingdienst, enforcement of employment relationshipsChecked 2 Oct 2026

The supply of workers: the Waadi and the Wtta

An EOR is the legal employer, but the person works under your supervision. Dutch law calls this the supply of workers. Payrolling is one form of it. Strict rules apply, and they become stricter in 2027 and 2028.

Registration now

A business that supplies workers must register this activity in the Handelsregister. This applies to foreign businesses without a Dutch branch too. A client must not use a supplier that is not registered.Waadi (Placement of Personnel by Intermediaries Act), articles 1, 7a and 8a, Business.gov.nl, registering a foreign companyChecked 2 Oct 2026

Admission from 2027 (Wtta)

The Act on the admission of suppliers of workers (Wtta) starts on 1 January 2027. Suppliers apply for an admission from the Netherlands Authority for the Labour Supply Market (NAU). An admission needs a deposit of €100,000. Suppliers that want to use the transition rules report between 1 November 2026 and 1 January 2027.Staatsblad 2026, 159, the start of the Wtta, Staatsblad 2025, 385, the Wtta, Business.gov.nl, suppliers of personnel must be authorisedChecked 2 Oct 2026

The ban from 2028

From 1 January 2028, a supplier without an admission must not supply workers, and a client must not use such a supplier. Both can get a fine.Staatsblad 2026, 159, the start of the Wtta, Staatsblad 2025, 385, the Wtta, Business.gov.nl, suppliers of personnel must be authorisedChecked 2 Oct 2026

Does this apply to an EOR?

The NAU uses 3 tests. A business supplies workers when it makes an employee available to another business, gets a fee for it, and the employee works under the supervision of that business. The NAU says that payrolling and foreign suppliers are covered too. No official page names employers of record, but a usual EOR service meets the 3 tests.NAU, do you need an admissionChecked 2 Oct 2026

Equal terms in payrolling

A worker in payrolling has a right to at least the same terms as your employees in the same or similar jobs. If you have no such employees, the terms of your sector apply. The worker also has a right to an adequate pension if those employees have a pension scheme.Waadi (Placement of Personnel by Intermediaries Act), articles 1, 7a and 8aChecked 2 Oct 2026

Ask each provider these questions before you sign:

• Is your Dutch company, or your partner, registered in the Handelsregister as a supplier of workers?
• Will you have a Wtta admission before 1 January 2028? Did you report for the transition rules?
• Do you treat our hire as payrolling? Which terms and which pension scheme will apply?

These rules are complex. Ask a Dutch lawyer how they apply to your case.

Employment rules

Minimum wage

€14.99 an hour for ages 21 and over, since 1 July 2026. It was €14.71 from 1 January 2026. Since 2024, there is no fixed monthly minimum wage, only an hourly one. Lower rates apply to younger workers.Rijksoverheid, minimum wage amounts 2026, Minimum Wage and Minimum Holiday Allowance Act, articles 15 to 17Checked 2 Oct 2026

Working hours

For workers aged 18 and over: at most 12 hours a shift and 60 hours a week. Over 16 weeks, the average is at most 48 hours a week.Working Hours Act, article 5:7Checked 2 Oct 2026

Annual leave

At least 4 times the weekly working hours of paid leave a year. For a 5-day week, that is 20 days.Civil Code, book 7Checked 2 Oct 2026

Public holidays

No law gives a right to a day off on a public holiday. The collective agreement or the contract says if the employee has the day off.Rijksoverheid, official public holidaysChecked 2 Oct 2026

Sick pay

During illness, the employer pays at least 70% of the wage for up to 104 weeks. In the first 52 weeks, the pay is at least the minimum wage.Civil Code, book 7Checked 2 Oct 2026

Maternity, partner and parental leave

16 weeks of pregnancy and maternity leave, with a benefit from UWV. The partner gets 1 week of birth leave, which the employer pays, and up to 5 more weeks at 70% of the wage from UWV. Each parent can take 26 times the weekly hours of parental leave. In the child's first year, UWV pays 70% of the wage for up to 9 weeks of it.Work and Care Act (Wazo), UWV, pregnancy and maternity leaveChecked 2 Oct 2026

Probation

At most 2 months for a permanent contract. At most 1 month for a fixed-term contract of more than 6 months and less than 2 years. No probation for a contract of 6 months or less. The probation must be in writing.Civil Code, book 7Checked 2 Oct 2026

Notice

The employer gives 1 month of notice for less than 5 years of service, 2 months up to 10 years, 3 months up to 15 years, and 4 months after that. The employee gives 1 month.Civil Code, book 7Checked 2 Oct 2026

Dismissal

If the employee does not agree to the dismissal, the employer needs permission. UWV decides on economic reasons and long-term illness. A court decides on personal reasons. A dismissal by mutual agreement needs no permission, but the employee can cancel the agreement within 2 weeks.Ondernemersplein, dismissal proceduresChecked 2 Oct 2026

Transition payment

When the employer ends the employment, the employee gets a transition payment from the first day of work. It is 1/3 of a month's pay for each year of service. In 2026, it is at most €102,000, or 1 year's pay if that is higher.Civil Code, book 7, Rijksoverheid, the transition paymentChecked 2 Oct 2026

Payroll and taxes

The employer, or the EOR, registers with the Belastingdienst and gets a payroll tax number. It files a payroll tax return for each month or each period of 4 weeks. In it, it pays the wage tax and the employee's national insurance contributions that it takes out of the pay. It also pays the employer's premiums and the Zvw levy.

The employee insurance premiums and the Zvw levy apply to the pay up to €79,409 a year. The holiday allowance is part of this pay. The Belastingdienst calculates the maximum over the whole year, so a large payment in one month does not escape it.

The Whk rate differs for each employer. The Belastingdienst sets it each year, from the size and the sector of the employer. Our calculator uses the average rate of 1.52% for 2026.

For 2027, the government's budget expects an Aof of 6.67% and 8.03%, and a Whk average of 1.67%. The AWf rates stay the same. The rates become final at the end of 2026.

The holiday allowance is paid in June, for the year up to 31 May. A written agreement can set another moment, but the employer pays it at least once a year. At the end of the employment, the employer pays the allowance that the employee has earned.

With the 30% ruling, the employer can pay up to 30% of the pay of an employee from abroad as a tax-free allowance. The allowance is at most €78,600 a year. In 2026, the taxable pay must be more than €48,013 a year, or €36,497 for a person under 30 with a master's degree. The ruling lasts up to 5 years, and the Belastingdienst must approve it. From 2027, the maximum falls to 27%.

Sources: Belastingdienst, Handboek Loonheffingen 2026 (PDF), Belastingdienst, rates and amounts for payroll taxes from 1 Jan 2026 (PDF), Belastingdienst, low and high AWf premium, Belastingdienst, employee insurance contributions (English), Minimum Wage and Minimum Holiday Allowance Act, articles 15 to 17, Rijksfinanciën, SZW budget 2027, explanatory memorandum, Belastingdienst, the 30% ruling, Ondernemersplein, the 30% ruling becomes 27%Checked 2 Oct 2026

Payroll in the Netherlands: an EOR or a local payroll company?

A local payroll company calculates the pay, the tax and the premiums, and it files the returns. It does not employ the person. Your company stays the legal employer, with all the duties of an employer under Dutch law.

Premiums are due

If your employee is insured in the Netherlands, your company must pay the employee insurance premiums and the Zvw levy there, even without a Dutch office.Belastingdienst, your employee is insured in the NetherlandsChecked 2 Oct 2026

Wage tax by choice

A foreign company without a Dutch establishment can choose to withhold the wage tax. It then keeps a payroll administration in the Netherlands, and it registers with the form "Aanmelding Onderneming buitenland". The Belastingdienst usually sends the payroll tax number within 1 week.Belastingdienst, you choose to withhold payroll taxes, Belastingdienst, registering as an employer from abroadChecked 2 Oct 2026

Help with the payroll

The government's business site says that an employer can use payroll software, a payroll office or an accountant.Business.gov.nl, payroll taxChecked 2 Oct 2026

So in the Netherlands, your company can be the employer itself, with a local payroll company. Then your company carries the duties of the employer, such as sick pay for up to 2 years and the rules on dismissal. With an EOR, the EOR carries them, but the Waadi and Wtta rules apply. Ask a tax adviser if an employee in the Netherlands creates a taxable presence (a permanent establishment) for your company.

Sources: Belastingdienst, your employee is insured in the Netherlands, Belastingdienst, you choose to withhold payroll taxes, Belastingdienst, registering as an employer from abroad, Business.gov.nl, payroll taxChecked 2 Oct 2026

Benefits

The law requires the employee insurance premiums, the Zvw levy, the holiday allowance of at least 8% and the leave that this guide describes. Above 3 times the minimum wage, the contract can leave out the holiday allowance or make it lower.

No law requires a pension in general. In some sectors, a pension fund is compulsory, and a collective agreement can also require one. About 90% of employees have a pension scheme through their work, and the employer usually pays about 2/3 of the premiums. All schemes must move to the new pension rules by 1 January 2028.

In payrolling, the employee has a right to an adequate pension if your staff in similar jobs, or your sector, have one. Deel, Remote and Oyster show an employer pension of 15.2% to 15.4% of the salary on their Netherlands pages. Our calculator has an option for the pension rate. Ask your provider which scheme and which rate apply.

Sources: Minimum Wage and Minimum Holiday Allowance Act, articles 15 to 17, Rijksoverheid, how much is the holiday allowance, Ondernemersplein, offering a pension scheme to your employees, Rijksoverheid, how pensions are built up, Rijksoverheid, the move to the new pension system, Waadi (Placement of Personnel by Intermediaries Act), articles 1, 7a and 8a, Deel Netherlands page, Remote Netherlands page, Oyster, hiring employees in the NetherlandsChecked 2 Oct 2026

How hiring through an EOR works

1. Compare providers and ask for quotesAsk for the monthly fee in the Netherlands, the deposit, the exchange rate and the notice period of the EOR contract. Ask about the Handelsregister registration, the Wtta admission and the pension.
2. Agree the employment termsAgree the salary, the start date, the leave and the probation period with the candidate. The salary must meet the minimum wage.
3. The EOR signs the contractThe EOR becomes the legal employer. It follows Dutch law and the terms that apply to payrolling.
4. The EOR runs the payrollEach month, the EOR pays the salary and takes out the wage tax. It pays the tax, the premiums and the Zvw levy to the Belastingdienst. Once a year, it pays the holiday allowance.
5. You manage the daily workYou set the tasks and the goals. The EOR handles the employment administration.

Sources: Belastingdienst, registering as an employer from abroad, Belastingdienst, Handboek Loonheffingen 2026 (PDF), Minimum Wage and Minimum Holiday Allowance Act, articles 15 to 17Checked 2 Oct 2026