Netherlands EOR & PEO services

The Netherlands offers a diverse range of PEO/EOR employment opportunities, attracting both domestic and international talent to contribute to its thriving workforce.

Employment contracts through PEO/EOR Netherlands

An employment contract (arbeidscontract) is an agreement between an employee and an employer containing working arrangements. In the employment contract, you indicate whether a Collective Labour Agreement (CAO) applies. There are two types of employment contracts:

  • A fixed-term contract (a temporary contract),
  • Contract for an indefinite period (a permanent contract).

Permanent contracts are the most common employment contracts at EOR/PEO Netherlands, as the employer likes to give the employee a certain feeling of trust and security. You cannot continually extend temporary contracts. An employee must receive a permanent contract after 3 consecutive temporary contracts or after temporary contracts over a period of 3 years. This applies unless other arrangements have been made in the CAO.

Since 2019, there has been a huge increase in giving employees a permanent contract.

Netherlands EOR/PEO employment termination and notice period

The Netherlands has no legal concept of “at-will” employment like in the US and generally has fairly strict legal requirements and procedures that employers must fulfill before successfully terminating employees. If you want to dismiss staff or your employee wants to resign, a period of notice should be given in both situations. 

The length of the notice period for an employer depends on the duration of the employment contract:

Tenure Notice Period
Less than 5 years 1 month
Between 5 and 10 years 2 months
Between 10 and 15 years 3 months
15 years or longer 4 month
Typical Dutch Windmills in the middle of the field, EOR Netherlands

Netherlands EOR/PEO employment: Salary, employer costs and working hours

In 2022, the average annual wage in the Netherlands was $44.958,48. This is lower than the average annual wage in the United States: $53.490,00. As an employer, the actual employer costs are at least 23.59% higher than the gross annual salary. Based on a $44.958,48 annual salary, the employment costs would be $55.298,93.

Apart from the average annual wage and the social security tax for employers, an EOR/PEO employer in the Netherlands also has to take into account the employment cost that comes with the monthly holiday allowance of 8% and the €0.19 cent per kilometer travel reimbursement. 

See all average salaries in Europe in 2022

A standard Dutch working week is 38 hours. The majority of full-time jobs in the Netherlands are between 36-40 hours a week, or seven to eight hours a day, five days a week.


Dutch canal in Utrecht, Netherlands PEO & EOR

Paid vacation leave and public holidays in Netherlands EOR/PEO employment

If an employee works full-time (i.e. 5 full days a week), then the legal minimum number of days paid leave that the employee is entitled to is 20, equivalent to 4 weeks of paid annual leave. However, it is common practice for employers in the Netherlands to offer 25 days of paid leave on top of 10 public holidays in the Netherlands.

In the Netherlands, there are 10 or 11 public holidays (once every 5 years):

  1. New Year's Day – 1 January
  2. Good Friday – 29 March
  3. Easter Sunday – 31 March
  4. Easter Monday – 1 April
  5. King's Day – 27 April
  6. Liberation Day (once every 5 years) – 5 May
  7. Ascension Day – 9 May
  8. Whit Sunday – 19 May
  9. Whit Monday – 20 May
  10. Christmas Day – 25 December
  11. 2nd Day of Christmas – 26 December

Add 2024 Netherlands public holidays to your calendar


Hotel Inntel in Zaandam, Netherlands

Maternity and paternity leave through PEO/EOR in the Netherlands


Maternity leave in the Netherlands: Pregnant mothers are entitled to a total of 16 weeks of leave. 6 weeks of pregnancy leave (before the due date) and at least 10 weeks of maternity leave (after childbirth). If, for instance, the baby is born before the pregnancy leave, a total of 16 weeks starts from the day after the birth. Employers can apply for a 100% maternity allowance for their employees. 


Paternity leave in the Netherlands: If the partner of an employee gives birth, the employee has a right to take 1 week of paternity leave. This paid leave can be taken any time in the first 4 weeks after the birth. During this 1 week of leave, the employer must pay 100% of the salary.

Partners have the opportunity to extend the partner leave to 5 weeks in the first 6 months after the birth. Employees who take the opportunity to extend their leave can claim benefits for up to 70% of their salary from the Employment Insurance Agency (UWV). 

Find out everything you need to know about Maternity leave in other European countries

Social Security tax for Netherlands EOR/PEO employers

Workers within the Netherlands are required by law to pay social security contributions on their gross salary and all earnings. The social security employer tax rate in the Netherlands in 2021 is, on average, 23.59%.

Netherlands EOR/PEO employer contributions are capped at an annual salary level of EUR 58,311. The following rates (2021) have to be applied against the gross salary, with the ceilings indicated.

(COPY) Table for Blog page - HRO (1)

To learn more about the social security tax in Europe, we invite you to read this article on Social Security Tax Rates for Employers Across Europe.

We know European markets

Europe is home to a diverse range of countries, each with its unique employment characteristics. These reflect the diverse economic and cultural landscapes across the continent.

Contact us


Get in touch with our team of experts to identify the best PEO and EOR solutions for your needs in the Netherlands today. Our HR Outsourcing services provide you with the right helping hand to enable you to grow! 

Monique Ramondt-Sanders

Monique Ramondt-Sanders

CCO & VP of HR Outsourcing