The top 4 benefits of a Dutch labor contract

When working in The Netherlands, you should have a Dutch labor contract with Dutch benefits, right? Sadly, that’s not always the case!

Some job agencies contract people in another European country, then send them to The Netherlands to work under a foreign labor contract. By doing so, they avoid Dutch regulations about pension, vacation money, and other social benefits. This is beneficial to the agency, because it lowers their costs, but a problem for the employee because their NET payment is much lower. For example, a company may offer an employee a Lithuanian labor contract, then send them to work in the Netherlands for a lower NET pay.

At EU-People, we believe in equal pay for equal work. That’s why we hire everyone with a Dutch labor contract, so you’ll always get Dutch benefits. You’re also guaranteed the same salary as Dutch colleagues who work in the same position as you. Keep reading to learn about the top 4 benefits of Dutch working conditions.

1. The best salaries in Europe

The Netherlands is among the best-paying countries in all of Europe (2024). When looking at NET salary, only Luxemburg pays better!

The minimum wage in 2024 in the Netherlands for people of 21+ years old is €2.150 NET per month, or €13,27 gross per hour (when working 40 hours). That’s 1,8x higher than Spain, 2,9x higher than Poland, and 3x higher than Lithuania – after taxes!

With a Dutch labor contract, you get paid at least the Dutch minimum wage. At EU-People, many of our jobs pay even higher than Dutch minimum wage. If you work in the Netherlands but don’t have a Dutch labor contract, your NET salary if often less than Dutch minimum wage – so watch out!

2. Vacation days and holiday allowance

There’s a very good work-life balance in The Netherlands. When working full-time, you’ll get at least 20 paid vacation days per year. Those 20 days are a “statutory” requirement and do not include public holidays.

20 vacation days is the legal minimum, but many companies offer at least 4-5 more per year. Those are called “extra-statutory” vacation days, which may be paid out in your salary instead. Your “statutory” vacation days are mandatory, so you will have to take those vacation days during the year in which you received them.

You’ll also get vacation money, which is at least 8% of the total salary that you’ve earned. This holiday allowance is mandatory by Dutch law and exists to help you enjoy your vacation even more.

You’ll only be able to enjoy these benefits if you have a Dutch labor contract with Dutch working conditions. When working via us at EU-People, your vacation money will be higher than the minimum: 8,33% instead of 8%.

3. Insurance and healthcare benefit

When living and working in The Netherlands, you are required by law to get health insurance. If you earn less than €37.496 per year (2024), you can apply for healthcare benefit (Zorgtoeslag). You’ll then receive up to €236 per month (2024) to help you pay for your health insurance. You can calculate online how much healthcare benefit you are able to get.

If you’re not working under a Dutch labor contract, you probably can’t get a BSN in The Netherlands, which means you can’t get Dutch health insurance or healthcare benefit. As a result, you may only be covered for medical emergencies, IF you have a travel insurance that covers that. If you need other types of medical care, you’d have to stop work and go back to your home country. If you need immediate care in The Netherlands, you’d probably have to pay for it yourself.

4. Social benefits

If you have a Dutch labor contract, you’re probably entitled to a lot of social benefits. For example, you may be able to request healthcare benefit (Zorgtoeslag), Extra-Territorial tax discount, housing benefit (Huurtoeslag), child benefit (Kinderbijslag), and more. These benefits can add up to some serious extra income each month. With us at EU-People, you’ll have a Dutch labor contract and will be able to apply for social benefits under specific circumstances. If you’re an EU-People employee, our staff helps you with that for free.

Summing up

The Netherlands is infamous for its high labor taxes, which can make a non-Dutch labor contract sound attractive. The reality is, that you get a lot of benefits in return, as you can see above! Especially when you have a lower income, there are many financial benefits to enjoy if you have a Dutch labor contract with Dutch working conditions. Be sure to do your research so that you don’t get scammed!