Employee Cost Calculator - Netherlands
Our Employee cost calculator simplifies this complicated process by providing a detailed breakdown of all employment-related costs. Whether you’re hiring full-time employees or contractors, this employment cost calculator ensures you have a clear picture of the true financial investment involved
1. What is an Employee Cost Calculator?
A cost-of-employee calculator, alternatively known as a workers calculator, salary calculator for employers, or labour cost calculator, can help determine the total cost of hiring an employee. Also, Employers can gain a comprehensive understanding of the financial commitment involved in hiring. It allows companies to budget effectively, ensure compliance with legal obligations, and make smarter hiring decisions.​
2. What is the total cost of hiring an employee in the Netherlands?
The total cost of hiring an employee in the Netherlands is more than the gross salary. Employers must account for the following:
- Payroll taxes and social security contributions: 20%-30% of the salary
- Employee benefits: health insurance, pension contributions, paid leave
- Administrative costs: costs of contracts, payroll management and compliance with Dutch labour laws.
So, the total cost of hiring an employee is much higher than the gross salary only. Use the Employee Cost Calculator to calculate these costs when expanding or hiring in the Netherlands.
3. What benefits are included for employees in the Netherlands?
In addition to the 13th month salary, employees in the Netherlands are entitled to the following:
- Paid vacation days: Employees are entitled to at least 4 times the weekly working hours in paid vacation days.
- Health insurance: Employees must have health insurance; employers pay part of the costs.
- Pension contributions: Employers contribute to the employee’s pension scheme.
- Sick leave: Employees are entitled to sick leave pay; a part of the salary is paid during illness.
4. What is the 30% Ruling in the Netherlands?
The 30% ruling is a tax benefit provided by the Dutch government to attract foreign skilled workers to the Netherlands. If you move to the Netherlands from another country, you will face a higher cost of living.
To help cover these “extraterritorial costs”, your employer can pay you a part of your salary tax-free. Under the 30% ruling, your employer can pay you up to 30% of your salary (including these costs) without taxing it. This makes it easier for international workers to settle in the Netherlands.
5. Why Employer of Record in the Netherlands?
Expanding into the Netherlands can be a hassle. Still, with Pamgro’s Employer of Record (EOR) services, you can skip all the headaches and focus on what really matters: growing your business.
Pamgro is your local employer; we take care of all employment-related matters for your international hires. From employment contracts to local tax compliance and employee benefits to housing and relocation, we’ve got you covered. We’re not only experts in employment law, we’re also specialists in Dutch immigration law, we help your team navigate the housing and relocation process with ease.
Pamgro takes care of the Dutch regulations for you. We make sure your employees are legally employed, paid and settled in the Netherlands.
Leave the paperwork and compliance to us and focus on your business. Ready to expand? Get in touch today to see how we can make your expansion into the Netherlands smooth and easy.
Ensure compliance with Dutch Employment Laws
Discover the essential facts every employer and employee should know and avoid costly mistakes.
Check out our Global Hiring Guides
Uncover the True Cost of Hiring Problem in the Netherlands!
Missing details can lead to unexpected expenses. Calculate exact UK hiring costs - including taxes, fees, and benefits - in seconds with our free calculator.
Frequently Asked Questions
01
Why is it important to calculate the true cost of an employee?
Ans: The total cost of employment is often much higher than the salary alone. It includes hidden expenses, which are critical for budget planning and long-term financial sustainability​. The true cost of employee calculator will help you determine the details and make informed hiring decisions.
02
What is the difference between gross salary and total cost to the employer?
Ans: Gross salary refers to the pre-tax earnings of the employee, while the total cost to the employer includes additional expenditures like pension, NI contributions, and any other benefits provided​.
03
Can the calculator help with salary sacrifice schemes?
Ans: Yes, the cost of employment calculator allows you to incorporate salary sacrifice schemes, which can reduce employer National Insurance costs and provide tax-efficient benefits for employees.​
04
Is the calculator suitable for small businesses?
Ans: Absolutely. It helps small businesses better understand hiring costs, ensuring they comply with legal requirements and manage budgets efficiently.​
05
How Can I Hire in Another Country?
Ans: So you know how much it costs to hire in a country – what comes next?
With Pamgro, you can take your hiring process global, seamlessly and efficiently. As a fully integrated Employer of Record (EOR) company, we take care of all the heavy lifting for you.
We handle everything from payroll and benefits to ensuring full legal compliance in each country so you can focus on scaling your business without worrying about local labour laws.
It’s simple – you hire, we manage, all for a flat fee per employee. Whether you’re expanding to one country or hiring globally, we make it easy to bring talent on board wherever they are.
Ready to expand your workforce globally? Get started with Pamgro today and onboard your first international employee with ease!
Solutions
Guides
Resources
Company
