Tax interest (Belastingrete) is charged by the Dutch Tax authorities for unpaid taxes. If there is an overdue amount to be paid, interest may be imposed. If there is a refund, you can receive an interest payment under (very strict) conditions.
Comply with laws and regulations when recruiting staff
When looking for employees, you should follow rules for equal treatment of candidates. For example, make sure the job description is neutral so that everyone feels welcome to apply. During an interview, you should not ask questions about health or private life. Or about someone’s family or desire to have children. Finding good candidates starts with good job ads and the right approach.
Verify and register the identity of your employees
Have you found a suitable candidate? Then check who the applicant is and whether they can come and work for you. This also applies if you want to hire foreign staff or trainees. You have to verify the identity of all workers on the basis of an original identity document when they join your company. You must keep a copy of the identity documents in your records.
Note, for example:
- the passport photo
- signature
- nationality
- whether the document is valid
- authenticity features (such as watermark and document number)
Employing your first staff in the Netherlands
Register as an employer with the Tax Administration
If you are employing personnel for the first time, you must register as an employer with the Tax Administration. In general, the wage tax number application takes 2-6 weeks, depending on the Dutch Tax authorities. We are more than happy to assist you to register as an employer. Have you
subscribed our Company Officer Package? In any case, please contact our corporate department at corporate@bolderlaunch.com
Enter into a contract of employment
In an employment contract, you specify the employee’s salary, indicate whether a Collective Labour Agreement applies, outline working hours and rest times, and indicate whether you arrange an employee pension scheme. There are several types of employment contracts. For instance, a temporary or a permanent one. You can hire on-call workers with a zero-hours or min-max contract.
Put agreements on paper
By law, you must put some things in writing 1 month after your employee has started. Some agreements are only valid if they are confirmed in writing.
In practice, foreign entrepreneurs always face the tackles due to the unfamiliarity of the Dutch labor law. We provide the assistance to draft an employment contract in accordance with Dutch Labour law. Should you require our service, please contact our corporate department at corporate@bolderlaunch.com.
Pay at least the Dutch minimum wage and holiday allowance
Everyone working in the Netherlands is entitled to the Dutch minimum wage and a holiday allowance. This also applies to temporary workers, flex workers and foreign personnel. For younger workers aged 15 to 20, the minimum youth wage applies. There is no minimum youth wage for employees aged 13 and 14. You agree together on how high the wage is.
As of 1 January 2024, employers are required by law to pay workers at least the hourly minimum wage. The hourly minimum wage is the same for all employees aged 21 years and older. The hourly minimum wage for employees under 21 depends on their age. The rates for young people are calculated on the basis of the general hourly minimum wage, as was the case in 2023.
Table: Hourly minimum wage before tax as of 1 January 2024, by age
- 21 years and older €13.27
- 20 years €10.62
- 19 years €7.96
- 18 years €6.64
- 17 years €5.24
- 16 years €4.58
- 15 years €3.98
Besides salary, you will face various costs when hiring staff. Such as holiday pay, payroll taxes and extra (secondary) benefits. Read which personnel costs you need to think about.
30% Ruling (if applicable)
The 30% ruling is a tax exemption for highly skilled migrants who are working or coming to work in the Netherlands. They have to be hired from abroad by a Dutch company.
The following criteria have to be met in order to be eligible for the 30% ruling:
- The employee must work for an employer who is registered with the Dutch tax
authorities; - The employee and employer have to agree in writing that the 30% ruling is
applicable and has to be carried out by both parties; - The employee has to be recruited or transferred from abroad;
- The employee did not reside within 150 kilometers of the Dutch border for the last
18 out of 24 months at the time of the actual hiring; - The employee must earn a minimum gross salary of €41,954 in 2023
o Employees Younger than 30 with a Master’s degree must earn a gross
salary of at least approx. € 31,891 in 2023;
o For doctors in training and scientifically educated trainees, no minimum
salary is applicable. - The expertise of the highly skilled migrant has to be scarcely available in the
Netherlands.
A mutual request is needed for the application for the 30% ruling. Therefore, the employer and employee have to file a request to the Dutch tax authorities within four months after the start of the employment, according to the contract. When the application is filed within four months after the start of the employment, the ruling will apply from the first day of the start. When the application is filed after 4 months, the ruling will apply on the first day of the next month after the application was filed.
Our experts can assess and request the 30% rule Netherlands for both employers and employees. Applying on time guarantees the employee and the employer to be able to apply the 30% ruling from the first working day. Our accounting team makes sure that requests are handled efficiently and quickly by cooperating with the Tax Authorities. Please do not hesitate to contact us.
Provide your employee with a payslip
You must issue a payslip to your employee. Many employers do so each month, but that is not mandatory. You are required to provide a payslip upon payment of the first salary of a new employee. And as soon as something changes in the salary or the payroll taxes.
You are permitted to provide the payslip digitally if your employee explicitly agrees to this. Your employee must be able to save the digital payslip as a document.
Before your employee starts working for you, you can make a proforma payslip. This is a sample payslip. It allows you and your employee to already see what the gross and net salary is.
Our payrolling department is able to generate a payslip on your behalf on a monthly basis. It enables you to arrange the wage tax to the Dutch tax authorities, and the salary to your employees. As we will provide you the instruction along with the payment details for your convenience. Should you require our service, please contact our corporate department at corporate@bolderlaunch.com
The publication has been prepared for general guidance on matters of interest only and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No presentation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, Bolder Launch B.V., its members, employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting or refraining to act in reliance on the information contained in this publication or for any decision based on it.
