Global payroll in Netherlands

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Rivermate's global payroll solution helps companies hire remote employees in Netherlands . We take care of global payroll, taxes, benefits, compliance and HR activities. So you can focus on growing your business. Our global payroll solution is beneficial to companies that want to hire remote employees in a breeze. On this page you will find employment information for Netherlands.

1. Grow your team in Netherlands with Rivermate as your global payroll provider

Payroll, benefits, taxes, and compliance can be difficult to manage in , particularly if you don't have established local relationships. You can hire employees in effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global Employer of Record (EOR) solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

2. Introduction to global payroll in Netherlands

If you are interested in hiring a remote team in Netherlands, or even just individual remote employees in Netherlands, then you have come to the right place!

Rivermate is an Employer of Record (EOR) that offers Netherlands payroll solutions. As a Netherlands payroll provider, we will cover everything from salary, benefits, employer-to-employee contributions, and especially payroll compliance in Netherlands. We are confident Rivermate’s payroll solutions Netherlands will help you grow as a business—because now, you won’t have to worry about your payroll solutions Netherlands. We take care of everything payroll!

With Rivermate, you can run Netherlands payroll services in just one click—regardless of currency, benefits, insurance, and your local labor laws. Everything is automated. Our priority is for you to focus on your company’s strategy and growth.

Our Rivermate Global Payroll services are made especially for startups and scaleups. We know that startups try to be extra prudent when it comes to choosing a payroll provider, so it is our mission at Rivermate to be your most reliable and cheapest payroll provider option. So if you’re looking for global payroll providers for small businesses, look no further and book a call with us now!

3. How to set up global payroll in Netherlands

If you decide to set up your own payroll in the Netherlands, you must follow several rules that vary depending on the type of business structure you use. All employers must register with the Dutch Tax Authorities and obtain a payroll tax number. You must also comply with all income tax withholding and national insurance withholding laws.

4. Taxation rules for global payroll in Netherlands

The Netherlands has a strong social security system that includes programs for all residents as well as employee-only insurance programs. Employers primarily fund employee insurance programs, but employees can also contribute. These programs include everything from sick leave to the Health Insurance Act. Employers should budget between 20% and 25% of their payroll for social security contributions.

In the Netherlands, calculating taxes for your employees can be difficult. The country has three types of income "boxes" with different tax rates. Overall, income tax rates are progressive and vary according to an employee's earnings.

5. Payroll options for companies in Netherlands

Companies that wish to expand their operations globally have four different payroll options in Netherlands. These payroll options are:

1. Internal Payroll. This payroll option is applicable for already established companies in Netherlands. It includes devoting an entire Human Resources staff to running the company's payroll procedures.

2. Remote Payroll. Smaller firms may lack the capacity to handle their own payroll, but they may add their workers to the parent company's payroll. This action, on the other hand, requires considerable thinking. You must guarantee that you follow the rules and laws of each nation.

Working with a local outsourcing firm is one method to retain money in the local economy, but you'll still need to study all of the local rules and regulations, since you'll be held responsible.

3. Netherlands payroll outsourcing: Outsourcing your payroll to an Employer of Record in Netherlands, such as Rivermate, is another alternative for Andorra payroll outsourcing. We can manage all aspects of your payroll, including compliance. Send us a note and we'll get back to you as soon as possible!

6. Payroll compliance Netherlands

It is the obligation of the employer to ensure that all payroll-related transactions are properly documented and recorded. All salaries and compensation payments must adhere to the local minimum wage as well as other applicable laws and regulations.

Rivermate's payroll services in Netherlands can assist you in staying in compliance with the country's ever-changing payroll rules. We provide an all-inclusive solution that covers everything from compliance and reporting to salary payments.)

7. How to manage payroll in Netherlands

Companies that have a business presence in Netherlands have different ways of managing payroll. However, most of the options you have for running payroll in Netherlands are either expensive or require establishing a subsidiary in Netherlands. The cheapest, most efficient, and most reliable payroll processing system in Netherlands is by outsourcing payroll to Employers of Record (EOR) in Netherlands. Rivermate is one of those Employers of Record.

At Rivermate, we offer you the most efficient, most compliant, and cheapest HR and Payroll Management services in Netherlands. We do this by taking care of your payroll-related needs, such as keeping track of your employees’ financial records, including incentives, gross and net salary, and payslips, all the while staying compliant with the labor laws in Netherlands. Because we do your online payroll management for you, you can have absolute focus on your business’ strategy and growth.

Rivermate is all about growth through collaboration and we achieve this by offering the most reliable yet cheapest services for managing payroll for small businesses in Netherlands.

8. Entitlement and termination terms in Netherlands

In The Netherlands, the employer has generally five ways to terminate the employment agreement: termination by mutual consent or by means of a settlement agreement; termination proceedings before the Employee Insurance Agency (Uitvoeringsinstituut Werknemersverzekeringen, UWV), termination proceedings before the cantonal court, termination with the consent of the employee, or by urgent dismissal.

9. Compensation in Netherlands

The minimum wage in the Netherlands for workers 21 and older is 1,684.80 EUR per month as of January 2021. On July 1, 2021, this rate will rise to 1,701.00 EUR. However, the minimum wage rate could change if your employee is covered under a collective bargaining agreement (CBA). To prevent misconceptions, it is best practice to specify the proper minimum pay in a formal employment contract that the employee signs before their first day.

According to Dutch pay rules, every employee in the Netherlands receives an 8% vacation allowance as a bonus. This allowance is accrued monthly, and companies typically pay it out once a year in May.

10. Working hours and overtime in Netherlands

In the Netherlands, a standard workweek is 36 to 40 hours spread over five days. Employees are not permitted to work more than nine hours per day. A shift cannot exceed 12 hours in duration, and an employee's total weekly hours cannot exceed 60. Employees cannot work the maximum number of hours for an extended period of time; an employee cannot work more than 55 hours per week on average over a four-week period, or 48 hours per week for sixteen weeks.

11. Employee benefits in Netherlands

Employers in the Netherlands are obliged to pay 7% (2021) of their gross yearly income up to a maximum of € 58,311 to the Healthcare Insurance Act (ZVW or Zorgverzekeringswet). This payment is computed and paid to the Dutch Tax Department based on the employee's basic wage.

All residents and workers in the Netherlands are legally obliged to arrange for at least the basic healthcare package on their own. The cost of this basic healthcare package ranges from 95 to 125 EUR a month, depending on the employee's "own risk."

The basic health insurance package has a comprehensive framework and covers the majority of necessary medical treatment, medicines, and medical aids that are in accordance with current medical practice. The bundle includes certain physiotherapy and dental care treatments. (2016, Ministry of Health, Welfare, and Sport, “Healthcare in the Netherlands”)

All medical and other insurance allowances are taxable advantages.

In the Netherlands, employers often offer extra perks to their workers. A travel stipend for a leased vehicle or 100% of the cost of train/bus ticket for commuting is a typical perk.

12. Why choose Rivermate as your global payroll provider in Netherlands

Establishing an entity in to hire a team takes time, money, and effort. The labor law in has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record (EOR) solutions in give you peace of mind so you can focus on running your business. Please contact us if you'd like to learn more about how Rivermate can help you hire employees in via our Employer of Record (EOR) / PEO solution.

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