Salaries in the Netherlands

Do you know when salaries are paid out in the Netherlands? And what about how it works with the associated taxes and vacation days? Salary and taxes are topics that can often be quite complicated, and we understand that. We have an answer to all the questions that you have about salaries in the Netherlands.

What is the legal gross minimum wage?

This is possibly the most important question. What is the legal gross minimum wage in the Netherlands? And who actually decides the minimum wage? Minimum wage is the minimum salary that you have a right to if you are working. This is determined by the central government (Rijksoverheid). The minimum wage is based on age categories and is specified as an hourly rate. In the Netherlands this rule applies: The older you are, the higher the wage that you have a right to. This is true up until you are 21 years old. Below you can see the gross minimum wages as of January 1st, 2024.

Age
Minimum gross hourly wage
21 and older
€13,27
20 years old
€10,62
19 years old
€7,96
18 years old
€6,64
17 years old
€5,24
16 years old
€4,58
15 years old
€3,98
*Information gathered from the official Rijksoverheid website - https://www.rijksoverheid.nl

What salary will actually end up in your account?

When we talk about gross salary we are not referring to the amount that will be in your account at the end of the month. The gross salary is the salary amount before the deduction of taxes. What is left over is called the net salary and this is the amount that will be deposited in your account. You can get an estimation of the net amount that will end up in your account by using a gross to net calculator (bruto-netto salaris berekenen). Please note that no rights can be reserved based on these calculations, but they can help to give you an indication of what to expect. 

What taxes do we pay in the Netherlands?

The biggest difference between the gross and net salary amounts is payroll tax. Payroll tax is deducted from your gross salary and consists of wage tax and national insurance contributions. This part goes to the tax authorities (Belastingdienst). In the Netherlands you pay a minimum of 36,97% wage tax and a maximum of 49,50%. Everything left over is your net salary.

When will your salary be in your account?

Most employers pay out salaries at the end of the month. Sometimes this is every four weeks instead. Although your employer only has to pay your salary at the end of the month, many employers will do it earlier. Most often your salary will be in your account around the 23rd, 24th, or 25th of the month.

What is holiday pay and what are holiday days?

Holiday pay (vakantiegeld) is an extra benefit that is paid out on top of your salary. Legally this is 8% of the gross salary that you have earned in the previous 12 months. Your holiday pay will usually be paid out in May or June. You do not need to request holiday pay; this goes automatically. In addition to holiday pay you also build up holiday days (vakantiedagen). These are days that you can take off later. With most employers you will have the right to 25 holiday days if you work fulltime. This can differ per employer and be a few days more or less.

So, now you know exactly how salaries in the Netherlands work, what the difference between gross and net salary is, when your salary will be paid out, and that you receive the extra benefit of holiday pay. Do you still have questions after reading this blog? Then please contact us!

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