How is payroll managed in the Netherlands?

In the Netherlands, employees typically receive a monthly salary. They must be registered with a social security number and complete a salary tax declaration upon commencing a new role. Some may be eligible for a 30% ruling, which allows a portion of earnings to be exempt from income tax, applicable to highly-skilled expatriates. We can assist with the application for this ruling if necessary.

What are the sick leave regulations?

In the event of sickness, Dutch employees are generally entitled to a minimum of 70% of their salary. This pay can continue for up to two years, depending on the illness. Employers are required to report the sickness to the Employee Insurance Agency (UWV), and employees will receive a notification of payment details within four days.

What should be considered when dismissing an employee?

Employment rights in the Netherlands are quite stringent, so we recommend you consult with one of our employment law advisors before taking any action. Employees who are dismissed usually qualify for a severance payment, calculated based on their length of service and earnings. We can manage all aspects of this process to ensure compliance.