PAYROLL IN THE NETHERLANDS

Here’s what you need to know about payroll if your business is expanding into the Netherlands. The Netherlands offers one of Europe’s most structured and employee-friendly labour markets. With a complex taxation system including an emphasis on sustainability. Getting your payroll compliance right means a happy, engaged and motivated workforce. Getting it wrong can result in financial penalties, investigation by local authorities and reputational damage.

While payroll and HR regulations are similar in most developed nations, it's the ‘exceptions’ in each country that tend to cause challenges. For example, the Dutch government has instituted a tax exemption for highly skilled migrant workers. There are around 900 collective labour agreements in effect, covering approximately 85% of Dutch employees, as well as a tax regulation on benefits and allowances that needs to be carefully monitored.