Overview

Capital
Amsterdam
Currency
Euro (€) (EUR)
Date Format
dd-mm-yyyy

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Taxes

Employer
4.13% - Unemployment Insurance
7.93% - Disability
6.90% - Health Insurance
Employee
17.90% - General Old Age Pension
0.10% - General Surviving Relative Act
9.65% - Long Term Care
8.90% - Up to 20,142
13.20% - 20,142 - 33,994
40.85% - 33,994 - 68,507
51.95% - Over 68,507

Termination

Termination Process
There Are four ways to terminate an employment contract: 1. Mutual consent: in the scenario employees are given a 14 day reflection period during which they can rescind agreement. 2. By permission from the Dutch Employment Agency (UWV WERKbedrijf): for termination on economic grounds, or illness of two years or longer. 3. By dissolution of the contract by the cantonal court: other grounds for termination. 4. By summary dismissal for urgent cause: in cases of serious misconduct.
Advance Notice
The statutory notice period for employees is one month. Hoever, a shorter or longer notice period can be agreed upon. Maximum period is six months.
Severance Pay
Employers are required to make a transition payment to the terminated employee (if not resulting from misconduct) if they have stayed with the company for at least 2 years. The amount of the payment will be calculated by the numbers of years in service. This payment, however, cannot exceed higher of EUR 75,000 or annual salary of the employee. Payments must be provided as follows: * 1/6 gross monthly salary (including holiday pay, fixed bonuses etc.) for every six months of service during the first 10 years. * 1/4 month salary for every 6 months folowing. * Employees over 50 are entitled to one months salary per year served over 50.

Minimum Wage

General
Minimum monthly wage is 1,594.2 EUR monthly.

Working Hours

General
Full time employment is considered 38 hours weekly (however commonly ranges from 36-40), and 7-8 hours daily.

VAT

General
VAT is 21% standard rate.

Payment

Payroll Frequency
Pay frequency is monthly for work between the first and last day of the month. Payday is at the end of each month.

Mandatory Benefits

Pension Fund
The pension system is build of three pillars: 1. State pension - old age pension: basic income linked to minimum wage. - Married couples and couples living together: 50% minimum wage ( approximately 700 EUR monthly. - Pensioners living alone: 70% minimum wage (approximately 1,000 EUR monthly). 2. Collective pension scheme financed by capital funding: there is no legal obligation for employers to offer a pension, but 90% do. Employees typically contribute between 4%-7%. 3. Individual pension products
Social Security
Employers contribute 18.96% of workers wages, and employees contribute 17.9% of their salary.