Country profile

Netherlands

Capital
Amsterdam
Public holidays
11
Minimum Salary
€1,725 per month
Currency
EUR
About country
Remote Work Policy in the Netherlands

The Work Where You Want Act (Wet werken waar je wilt) gives employees the right to request to work remotely, at least partly. To be eligible, employees must have at least six months’ continuous service with their employer and must submit the request at least four weeks before the date they intend to start the new arrangement.

Once the request is received, the employer must consider it in good faith and give a decision within four weeks. The employer can only refuse the request for a limited number of reasons, such as if the remote working arrangement would be detrimental to the business or if the employee’s role cannot be performed remotely.

If the employer refuses the request, the employee can appeal to the Dutch Labour Inspectorate (Inspectie SZW). The Labour Inspectorate will consider the request and make a decision on whether or not to uphold it.

Key points of the remote work policy in the Netherlands:

  • Employees have the right to request remote working after 6 months of continuous service.
  • Employers must consider requests in good faith and give a decision within 4 weeks.
  • Employers can only refuse requests for limited reasons.
  • Employees can appeal refusals to the Labour Inspectorate.

Other laws related to remote work in the Netherlands:

  • The Working Conditions Act (Arbeidsomstandighedenwet) sets out requirements for the health and safety of employees, including those who work remotely.
  • The Personal Data Protection Act (AVG) regulates the processing of personal data by employers, including the data of employees who work remotely.
  • The Telework Act (Telewerkwet) sets out the rights and obligations of employers and employees in relation to telework.

Remote work policy:

A remote work policy should typically include the following information:

  • The definition of remote work.
  • The conditions under which employees can request remote work.
  • The employer’s decision-making process for remote work requests.
  • The employee’s rights and obligations under the remote work arrangement.
  • The employer’s rights and obligations under the remote work arrangement.
  • The procedures for resolving disputes.

It is important to tailor the remote work policy to the specific needs of the employer and employees. However, by following the guidelines above, you can create a policy that is fair and enforceable.

Tips for drafting a remote work policy:

  • Be clear about the expectations for both employees and employers.
  • Make sure the policy is flexible enough to accommodate the needs of both parties.
  • Update the policy as needed to reflect changes in the law or the company’s practices.
Employment Classification

There are two main types of workers in the Netherlands; employees and independent contractors.

An employee performs work in exchange for a salary under the authority and supervision of an employer, with all terms, agreed to by both parties in the contract of employment. An employment relationship exists when commercial risk is only carried by the employer, the employer has the authority to provide instruction for the time, place, and content of the work produced by the employee, and the worker is integrated into the wider organization.

Key characteristics of an employee under Dutch law are as follows:

  • An individual is the only person who can carry out the work, it cannot be outsourced to someone else
  • The individual works exclusively for the employer
  • The individual receives remuneration in exchange for the work produced
  • A subordinate relationship exists between the employer and employee – the employer has authority over the employee

An independent contractor is self-employed, they provide services for an hourly fee or fixed price based on the completion of work.

The main distinction between these two categories of workers is the level of protection they have under Dutch employment legislation. Employees enjoy many more protections than independent contractors.

In the case of the dismissal of an employee, an employer must gain approval from the court of Employee insurance Agency, the Uitvoeringsinstituut Werknemers Verzekeringen, or ‘UWV’. An independent contractor does not generally have protection against dismissal although there are some exceptions in certain circumstances.

If a worker is found to be misclassified, the employer will be liable to pay income taxes and social security contributions for the employee. They are then responsible to reclaim any of these contributions from the employee for their proportion of contributions, they may come to an agreement to deduct these contributions from future wages. Penalties may be imposed for any employers who are found to have ¨malicious intent´ in that they intentionally misclassified the employee, or have ignored clear instructions from the authorities.

The penalties and fines imposed for companies who have misclassified employees in the Netherlands can vary depending on the specific circumstances. However, the following are some of the most common penalties:

  • Backpay: The company may be required to pay back wages to the employee, including any unpaid overtime, holiday pay, and other benefits.
  • Interest: The company may also be required to pay interest on the backpay, at a rate of 8% per year.
  • Fines: The company may be fined by the Dutch Labour Inspectorate (Inspectie SZW). The amount of the fine will depend on the severity of the offense, but it can be up to €16,750 per employee.
  • Criminal prosecution: In some cases, the company may be prosecuted for a criminal offense. This is more likely to happen if the company has deliberately misclassified employees in order to avoid paying taxes or social security contributions.

The Dutch Labour Inspectorate is responsible for enforcing the laws on employee misclassification. If the Inspectorate suspects that a company has misclassified an employee, they will investigate the matter. If the investigation finds that the company has indeed misclassified an employee, the Inspectorate will take the appropriate action, which could include imposing the penalties listed above.

It is important to note that the penalties for employee misclassification can be significant. Therefore, it is important for companies to ensure that they are classifying their employees correctly. If you are unsure about how to classify an employee, you should consult with an employment lawyer.

Social Security contributions for self-employed

Self-employed or independent contractors in the Netherlands need to pay social security contributions. The contributions are paid to the Dutch Social Security Agency (SVB).

The amount of the contributions depends on the self-employed person’s income. The minimum contribution is €3,044 per year. The maximum contribution is €24,124 per year.

The self-employed person can also choose to pay voluntary contributions. These contributions can be used to qualify for certain benefits, such as unemployment benefits and disability benefits.

Social Security contributions for employers and employees

Employees:

  • Employee Insurance Contributions (AOW): The employee pays 17.9% of their gross salary.
  • Surviving Dependents (ANW): The employee pays 0.1% of their gross salary.
  • Long-term care (WLZ): The employee pays 9.65% of their gross salary.

The total social security contributions for employees in the Netherlands is 27.65% of their gross salary.

Employers:

  • Employer Insurance Contributions (AOW): The employer pays 20.4% of the employee’s gross salary.
  • Surviving Dependents (ANW): The employer pays 0.1% of the employee’s gross salary.

The total social security contributions for employers in the Netherlands is 22% of the employee’s gross salary.

Income tax rates in the Netherlands

The income tax payments in the Netherlands for 2023 are based on a progressive tax scale, with rates ranging from 36.93% to 49.5%. The amount of tax you pay will depend on your taxable income, which is your total income minus certain deductions and allowances.

Here is a table that shows the income tax rates in the Netherlands for 2023:

Taxable income Tax rate
Up to €68,507 36.93%
€68,508 to €100,816 45.95%
€100,817 to €124,560 49.5%
Above €124,561 49.5%

In addition to the progressive tax scale, there are also a number of deductions and allowances that you can claim to reduce your taxable income. Some of the most common deductions and allowances include:

  • Personal allowance: This is a fixed amount that everyone can claim, regardless of their income. The personal allowance for 2023 is €37,000.
  • Dependents: You can claim a deduction for each dependent child or relative that you support. The deduction for each dependent child is €3,600.
  • Rent: If you rent your home, you can claim a deduction for the rent that you pay. The deduction is limited to 15% of your taxable income.
  • Work expenses: If you incur expenses in the course of your work, you may be able to claim a deduction for these expenses. Some common work expenses include travel expenses, professional fees, and clothing expenses.
Costs
Typical living costs in the Netherlands
  • Average rental cost for a one bedroom apartment
    • Amsterdam: €1,600
    • Rotterdam: €1,400
    • The Hague: €1,300
    • Utrecht: €1,200
    • Eindhoven: €1,100
  • Meal in a restaurant for two people:
    • Amsterdam: €40-60
    • Rotterdam: €35-55
    • The Hague: €30-50
    • Utrecht: €25-45
    • Eindhoven: €20-40
  • Gym Membership:
    • Amsterdam: €60
    • Rotterdam: €50
    • The Hague: €50
    • Utrecht: €45
    • Eindhoven: €40
Holidays
  1. Nieuwjaarsdag (New Year’s Day): Sunday 1 January 2023
  2. Goede vrijdag (Good Friday): Friday 7 April 2023
  3. Eerste en tweede paasdag (Easter Sunday and Easter Monday): Sunday 9 and Monday 10 April 2023
  4. Koningsdag (King’s Day): Thursday 27 April 2023
  5. Bevrijdingsdag (Liberation Day): Friday 5 May 2023
  6. Hemelvaartsdag (Ascension Day): Thursday 18 May 2023
  7. Eerste en tweede pinksterdag (Whit Sunday and Whit Monday): Sunday 28 and Monday 29 May 2023
  8. Eerste en tweede kerstdag (Christmas Day and Boxing Day): Monday 25 and Tuesday 26 December 2023
  9. Eerste en tweede kerstdag (Christmas Day and Boxing Day): Monday 25 and Tuesday 26 December 2023
Employment Classification
Details
Essential information
  • Social Security
  • Employer Social Security
  • Population
    17.2 million
  • Minimum vacation days
    25 days
  • Time zone
    CET
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