Mandatory Employee Benefits in Netherlands
Health insurance
All individuals living in the Netherlands have to participate in the health insurance scheme (zorgverzekering). For individuals who are employed, the employer will pay part of the insurance - 6.68% on income up to a maximum of €66,956, with a maximum of aprox. €4,472 euros to the Dutch Tax authority. The employee pays the nominal fee by taking out private health insurance. Employees pay around €95-120 a month, depending on the insurance package they choose.
Pension
From 1 January 2021, all employees on the payroll are entitled to an “adequate” pension arrangements.
Employees must provide a detailed and accurate employment history to their employers to ensure that they have the correct Pension Plan.
Vacation days
Employees working on full-time are entitled to 20 paid vacation days.
Non-Mandatory Employee Benefits in Netherlands
Most common non-mandatory benefits in The Netherlands.
Additional annual leave
The statutory holiday entitlement is 20 working days, but in practice, employers give an extra 5-10 days to the employees.
Paid relocation service
Some companies offer free relocation services to employees willing to move to the Netherlands for a job, while others may provide temporary accommodation.
Extended paternity leave
Some companies offer two weeks of paid paternity leave instead of only one week as required by law.
Commuter allowance or bike
Employers often cover the employees commute to and from work or offer employees a bike (regular or electric) for the commute.
Career development allowance
Many tech companies give employees a training budget to stay on top of their industry. Generally, the training budget equals to 5% of the employee's salary and includes five paid training days.
Private pension fund
It is common for employers to contribute to employee's pension scheme through a collective pension scheme (some sectors or professions have a mandatory pension scheme). The employer usually contributes 8% to the pension fund, while the employee contributes 4%.
New employees are automatically offered the same plan as everyone else unless they agree on something else with the employer.
Flexible & remote work
Even though there's no law requiring employers to allow employees to work remotely or from home, many companies are starting to offer it.
Flexible working hours are common in the tech industry, and some companies even offer employees the possibility to work abroad for extended periods as long as they keep their Dutch tax residency.
Increased sick leave
It is common for companies to top up employee's sick leave in the Netherlands. For the first year of illness, employers pay 100% (70% on the second year) of the employee's base salary accounting for the indemnities that were paid out by the Dutch social security authorities (WIA). After two years, a disability pension is payable by insurance covering 10% of workers salary up to the WIA ceiling and 70% of workers salary above it.
Company trips
Some tech companies organise yearly retreats for the employees, usually a trip outside of the Netherlands.
Hardware
Most tech companies offer employees their choice of brand-new computer.
Wellness
Some companies offer different wellness benefits to employees: from gym membership to fitness programs and massages.
Visa sponsorship
Some tech companies offer sponsorship to non-EU residents willing to relocate to the Netherlands for work, including the employee's family.
Dutch language courses
Some companies offer employees free Dutch classes for better cultural immersion.
Bonus & profit-sharing
Employers often pay out bonuses or commissions to employees and offer them to be part of profit-sharing schemes. Such compensation, however, is not mandatory unless required by the applicable CLA. The employer and employee may agree on an annual bonus or commission, which is usually equal to a month's salary.
Company car & fuel allowance
While not so common in the tech industry, offering executives a company car and fuel allowance is a benefit some employers in the Netherlands extend.
Meal allowance
Some companies offer catered canteens to employees or a daily allowance of €10.
Curious to discover what benefits great employers offer in the Netherlands?
Download our handy infographic to learn more.
