Last updated 01/07/2025
Understand the real cost of employment before you onboard your first employee.
When expanding to the Netherlands, hiring staff is often the next major milestone after company setup. But before you extend your first job offer, it’s critical to understand one key element: total employer cost.
Unlike some other countries, Dutch employment obligations go well beyond base salary. From statutory social security contributions to employee insurances and payroll taxes, employers in the Netherlands must account for various hidden costs that add up quickly.
At Bolder, we help businesses avoid surprises by preparing pro forma payroll calculations tailored to their hiring plans. Here’s why this matters:
1. Dutch Salary Structure and Employer Obligations
In the Netherlands, the gross salary is just the starting point. Employers are also responsible for:
- Social security contributions (national insurance, employee insurance)
- Pension contributions (if applicable)
- Holiday pay (typically 8% of annual gross salary)
- Continued salary payment during illness (up to 2 years)
- Travel allowances or home office expenses (depending on the role)
All of these add to your monthly payroll costs and must be factored in when budgeting or drafting employment contracts.
2. The Hidden Costs of Dutch Employment
Failing to plan for employment-related expenses can quickly derail a company’s financial planning. Besides mandatory employer costs, you may need to consider:
- Insurance against illness or accidents
- 13th-month bonuses (common in some industries)
- Collective labour agreement (CLA) obligations
- 30% ruling eligibility (for expat staff)
These obligations vary based on salary level, nationality, job function, and contract terms. A pro forma payroll scenario helps you avoid underestimating your obligations—or overpromising compensation.
3. Why Dutch Employment Isn’t Just Base Salary
Candidates might focus on the gross monthly salary, but employers must think in terms of total cost-to-company (CTC). What looks like a reasonable gross salary could result in 20%–30% higher employer obligations once contributions, taxes, and benefits are applied.
Without a detailed scenario calculation, founders often miscalculate their burn rate, especially in startup or scale-up environments. Pro forma payroll helps you avoid mistakes that lead to cash flow strain or payroll delays.
4. How Bolder Supports Your Hiring Decisions
At Bolder, we prepare custom payroll simulations before you hire your first employee.
Our pro forma payroll calculation includes:
- Salary breakdown
- Employer contributions and tax obligations13th-month bonuses (common in some industries)
- Holiday pay and 13th-month estimations
- Optional 30% ruling and expat packages
- Comparison of employment contract structures
Whether you’re hiring locally or relocating foreign staff, we help you design a package that meets legal standards, fits your budget, and appeals to top talent.
Conclusion
Hiring in the Netherlands can be a powerful way to grow your European presence—but only if you fully understand the financial commitment involved. Don’t let hidden employment costs catch you off guard.
Bolder’s pro forma payroll calculations give you the clarity to make smarter hiring decisions, faster.
Please contact us at launch@bolderlaunch.com / corporate@bolderlaunch.com or +31 76 230 0011 to learn more about how we can help expand your business in the Netherlands. We are more than happy to assist with guidance!
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 Business Services (Netherlands) 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.
