Updated July 5th 2024

All About Offering Employee Benefits in the Netherlands

Hire the best talent in the Netherlands with the information you need to offer a competitive benefits package and stay compliant.

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Required Benefits in the Netherlands

Dutch work culture prioritizes work-life balance, and offering great employee benefits can go a long way toward keeping employees happy and healthy. Justworks EOR can help you understand what benefits are expected and required so you can make a competitive offer to prospective Dutch employees. Here’s what to consider:

Social Security 

Employers and employees in the Netherlands are required to contribute to the Dutch social security system. These contributions cover disability, unemployment insurance, reintegration compensation, sick pay, maternity and parental leave, and long-term care. 

Time Off

Dutch employees are entitled to at least 20 paid days of vacation time. Other recognized and protected leave includes public holidays, maternity and parental leave, sick days, short-term and long-term compassionate leave, adoption leave, and emergency leave.

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Holiday Pay 

All employers must pay employees “vakantiegeld,” which roughly translates to holiday allowance. Employers must provide at least 8% of an employee’s previous annual wages including overtime and paid holidays, typically in June.

Offer Competitive Benefits

While employees get basic health insurance through the national system, winning over the best talent may require additional benefits.

Employee-sponsored Health Benefits

Some employers cover an employee’s contributions to their national health insurance or offer access to additional plans for more extensive coverage and better care. Fitness benefits like gym membership and fitness class reimbursement are also common.

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Transportation & Work Expenses

Many Dutch companies reimburse travel expenses. Some employers offer remote workers a work-from-home stipend to cover home office expenses. 

Flexible Time Off 

Offering employees flexible leave for more paid vacation days, care-related leave, and unpaid leave is also fairly common. Overtime pay isn’t legally required, and some employers offer employees time off instead. 

Financial Incentives & Retirement 

Offering a 13-month payment as an additional bonus is up to the discretion of employers. It’s not required by law or a protected right. Many employers offer a company-funded pension for added retirement benefits on top of an employee’s state-funded pension.

Ready to Offer Benefits in the Netherlands?

Justworks EOR makes building your global team seamless by helping you access localized benefits to attract top talent in the Netherlands. Simplify international hiring today.

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