According to Velocity Global's employment agreement template, when is the salary due in the Netherlands?

In the Netherlands, according to our employment agreement template, salary is due on the last day of each calendar month.

What date does the law specify salary must be paid in the Netherlands?

In the Netherlands, it is required by law that salaries be paid into the supported employee's specified bank account on or before the last day of each calendar month, as outlined in the employment agreement. Failure to pay the salary within 3 workdays after this deadline results in legal fines.

How is salary calculated and what components does it consist of in the Netherlands?

In the Netherlands, salaries are communicated based on the gross base salary. The 8% holiday allowance is a mandatory additional payment separate from the gross salary and cannot be included in the employment agreements. This allowance is accrued monthly from June to May and then paid out in May of the following year.

The 8% holiday allowance, a requirement for all employees in the Netherlands, is considered part of the employer's burden and is invoiced to the customer as a monthly reservation.

Is there a legal obligation to pay salaries in the same month in the Netherlands?

In the Netherlands, there is a legal obligation to pay salaries on time, but this does not necessarily mean that salaries must be paid within the same month. For example, if the payday falls on the 30th of a month, the salary does not have to be paid within that same month. However, if the salary payment is delayed by more than 3 workdays, the employer could face legal fines of up to 50% of the owed salary. These fines can be reduced by a judge or in circumstances where the delay is not the employer's fault. It is common practice to inform a newly onboarded supported employee that their payment might be processed in the following month, especially if the payroll setup is still in progress.

How many salary payments are made per year in the Netherlands?

In the Netherlands, there are 12 monthly salary payments per year, in addition to the payout of the holiday allowance in May.

Is salary payment monthly and is payment standard at the end of the month in the Netherlands?

In the Netherlands, salary payment is monthly and typically occurs towards the end of the month.

Should the employment agreement in the Netherlands specify salary in monthly or annual amounts?

In the Netherlands, the employment agreement must specify the gross salary on a monthly basis. Our employment agreement template includes monthly base salary, which does not include the 8% holiday allowance.

What tax and social security obligations do employees have in the Netherlands?

The Netherlands has a two-tier income tax system, implemented since 2020. The basic rate is 37.48%, and the top rate is 49.50%.

What are the details of the statutory bonuses and 13th/14th-month salary, including the local name and payment schedule?

Under Dutch law, employers are required to provide a holiday allowance known as "vakantiegeld." This allowance amounts to at least 8% of a supported employee's gross annual salary. It is important to note that this holiday allowance is a statutory entitlement and not categorized as a bonus. In accordance with local practices, this holiday allowance is typically issued in May.

What are the details of the customary bonuses, including the 13th-month salary, and when are these payments typically made in the Netherlands?

In the Netherlands, employers are not legally obligated to provide bonus payments. However, it is customary for employers to offer a "13th month" bonus. This bonus is equivalent to one month's salary and is typically paid in November or December.

What is the minimum wage information in the Netherlands?

As of July 1, 2025, the minimum wage for individuals aged 21 and older in the Netherlands is EUR 14.40 per hour. It is important to note that the minimum wage for individuals under the age of 21 varies. In the Netherlands, minimum wages are updated twice annually.