How to calculate your net salary in the Netherlands | Undutchables

Working in the Netherlands: How to calculate your salary

Starting a new job in the Netherlands? When you agree on a salary with your new employer, the agreed wage is generally a gross amount. It is therefore important to know what you subsequently will receive net on your bank account. In this blog post we will tell you how to calculate your salary.

Gross salary and net salary in the Netherlands

As mentioned above, one of the most important things to understand about your Dutch salary is the difference between your gross salary and your net salary:

Gross salary

The gross salary is the total amount of your salary without the deduction of tax and any other costs.

Net salary

The net salary is the salary that is deposited into your bank account every month.

When agreeing on a salary, the amount in question is almost always stated as a gross number. Hence, make sure you are aware of what the net amount will be as there is quite a difference between the two values.

Calculate your Dutch net salary

Because the net salary depends on various factors, such as the number of hours you work, your age, allowances, etc., we recommend that you use an online salary calculator.

In the example shown below, the gross salary used is 2500 euros per month. This is 30.000 euros a year. After deducting the relevant taxes and adding up the discounts, EUR 2,059 net per month remains.

Calculate salary text

Holiday pay, bonuses and compensation packages

In addition to your standard monthly salary, at most companies, you will receive a holiday allowance in the month of May equal to 8% of your annual income (approximately one monthly salary). This is to cover the expenses for your summer vacation. Some companies pay out this holiday allowance monthly. Discuss this with your employer to avoid any surprises in the future.

Some employers also offer performance bonuses that can be paid on a monthly, quarterly or annual basis. Other benefits include a company car, a mobile phone or the coverage of your monthly transport costs. For more information about secondary benefits or fringe benefits have a look at this article written in collaboration with DutchReview.

Highly skilled migrants who are recruited from abroad often also receive attractive remuneration packages. This includes coverage for a move, initial housing and (sometimes) the allowances for international schools for their children.

The monthly salary, holiday pay and any bonuses together form the annual income.

30% rule for expats in the Netherlands
Since moving to another country is not a cheap adventure, the 30% rule has been introduced. The 30% facility (or 30% ruling) gives the employer the possibility to grant 30% of the salary tax-free. These costs do not have to be substantiated. The application of the 30% facility will result in a higher net income. For more information about this rule, visit the iamexpat.nl website.

Do you still have questions about your salary? Or are you looking for a nice job in the Netherlands where you receive a nice salary? Then contact us or view our vacancies.

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