Employer of record in The Netherlands | Employee Benefits

Employee Benefits in Netherlands

Bonuses and additional payments

In the Netherlands, while not mandated by law, it is customary for employers to provide a 13th-month salary, typically equivalent to one month’s wage, paid in November or December. This bonus is often stipulated in employment contracts or collective labor agreements and is subject to standard tax and social security deductions. Employers must apply the same calculation method for all eligible employees to ensure compliance with labor regulations.

Annual leave

Employees in the Netherlands are entitled to paid vacation leave as soon as they start employment. The statutory entitlement is four times the number of days worked per week, totaling 20 working days per year for a full-time employee. This leave is fully paid and can be taken at a time agreed upon between employer and employee.

Additional leave may be offered as part of an employment contract or collective labor agreement, though it is not required by law. Many employers offer enhanced leave policies to stay competitive and improve retention.

Unused statutory leave must be used within six months after the end of the leave year, unless the employee was unable to take the leave. Payment in lieu of unused leave is only permitted upon termination of employment.

Sick leave

In the Netherlands, personal and sick leave are governed by the Dutch Civil Code. Employees are entitled to paid sick leave, with compensation provided by the employer for up to two years. The minimum compensation is 70% of the employee’s most recent wage, with many employers offering higher rates, especially in the first year. Employees continue to accrue paid leave during periods of sick leave.

Parental leave

Employers must provide 16 weeks of paid maternity leave, typically consisting of four to six weeks before and 10 to 12 weeks after childbirth, for each pregnancy. This leave is also available to adoptive and surrogacy-commissioning mothers. Pregnant employees who have contributed to social security are eligible for benefits, with written notice and medical documentation required to be submitted to the employer confirming the pregnancy and expected delivery date.

Additional benefits

Employers in the Netherlands are required to provide several statutory benefits under national labor law. The country’s social security system includes employee insurance, which is mandatory for all employees and covers unemployment and disability benefits. Social security also includes national insurance, which covers social benefits such as old-age pensions, child benefits, survivor benefits, and long-term care.

Many employers also offer supplemental benefits, such as meal vouchers, public transport subscriptions, private health insurance, or company-provided mobile phones. These additional benefits help improve retention and employer branding.

As your employer of record in the Netherlands, we help design compliant and competitive benefit packages that align with statutory obligations and local market expectations.