Hiring in the Netherlands through an Employer of Record
A Dutch employer pays a health insurance levy and premiums for unemployment and disability, set each year by the government.
Employing someone in the Netherlands through an Employer of Record costs their salary, plus 6.1 percent health insurance levy (zvw), 2.74 percent unemployment premium (awf), permanent contracts, 7.63 percent disability premium (aof), standard rate, plus the vendor's own monthly fee, the lowest published being from $199 from RemoFirst. The charges were read from belastingdienst.nl and the other government pages listed below, last on .
What does an employer pay on top of salary in the Netherlands?
- 6.1% Health insurance levy (Zvw)
- 2.74% Unemployment premium (AWf), permanent contracts
- 7.63% Disability premium (Aof), standard rate
Each charge, and what it is for
- Health insurance levy (Zvw): 6.1 percent of gross pay, paid by the employer (Belastingdienst).
- Unemployment premium (AWf), permanent contracts: 2.74 percent of gross pay.
- Disability premium (Aof), standard rate: 7.63 percent of gross pay.
- Minimum wage: €14.99 an hour for workers aged twenty-one and over, raised every January and July.
This figure is in EUR, and the calculator below works in US dollars, so it does not apply it. Converting would need an exchange rate this site has not sourced.
All three stop at a yearly maximum premium wage. Flexible contracts pay a higher unemployment rate and small employers a lower disability rate. The sector fund premium and childcare surcharge are left out.
What does one employee in the Netherlands cost a year?
Salary plus the charges above plus the vendor's published monthly fee, for twelve months. "At least" marks a vendor whose published fee is a starting price. Not included: benefits and currency conversion fees.
Vendor fees used
Atlas HXM from $599, Deel from $599, G-P from $599, Multiplier from $459, Oyster $699, Pebl (Velocity Global) $399, RemoFirst from $199, Remote from $599, Remundo from $498, Rivermate from $349, Skuad from $199, Slasify from $250, Teamed from $599. Not published: Rippling.
Where these numbers come from
- Health insurance levy (Zvw) on belastingdienst.nl read
- Disability premium (Aof), standard rate on wetten.overheid.nl read
- Each vendor's own pricing page, linked from its name above.