Hiring in the Netherlands: costs, rules and the best EOR providers

Businesses supplying personnel must register that activity in the Dutch business register under the Waadi rules. A hirer must check the supplier’s registration.

Open a Dutch BV when a lasting local operation and direct control justify its setup and ongoing employer administration. Compare the same team over one and two years: EOR fees against incorporation, accounting, payroll, pension, sick-pay exposure and internal HR time.

Include transfer overlap and any Expat Scheme applications. There is no statutory headcount at which a BV becomes cheaper; the crossover is a business calculation.

Yes, an EOR acting as the qualifying payroll employer can apply jointly with an eligible employee for the Dutch Expat Scheme, commonly called the 30% ruling.

It is not automatic: overseas recruitment, prior residence, salary and other conditions must be met, and the tax authority must approve the application. Obtain written confirmation that the provider will apply and administer it; an EOR contract alone does not create eligibility.

For 2026, qualifying taxable annual salary must normally exceed €48,013, excluding the tax-free allowance. The reduced threshold is more than €36,497 for qualifying master’s graduates under 30.

The employee generally must have lived more than 150 kilometres from the Dutch border for over 16 of the preceding 24 months. Other exceptions and prior-stay reductions apply; meeting the salary threshold alone is insufficient.

It can continue when an employee moves from an EOR to your Dutch BV, but the route depends on the employers. Outside a connected group of withholding agents, the new job must begin within three months after the old one ends.

The employee and new employer must apply within four months of the new start for the ruling to take effect from day one. Within a connected group, the existing decision can remain valid without a new application if its conditions still hold. A change of employer does not create a fresh five-year allowance.

Budget separately for holiday allowance and pension. The usual statutory holiday allowance is at least 8% of gross annual salary, subject to applicable exceptions.

Where the EOR arrangement is Dutch payrolling, the worker is entitled to an adequate pension arrangement rather than whatever optional benefit the provider prefers. The quote should identify the relevant scheme, employer contribution and whether the stated salary includes or excludes holiday allowance.

The actual arrangement determines the Dutch classification. A model where you recruit the employee and direct the work while a provider formally employs them fits the government’s description of payrolling.

Payroll employees receive equal employment conditions and adequate pension protection; ordinary agency flexibilities cannot simply be assumed. Require the provider to identify the legal model and applicable collective agreement before you use its contract.

Waadi registration records that a business supplies workers for payment in the Dutch Business Register. Check the exact supplying entity through KVK before hiring; a provider’s brand name or general company registration is insufficient.

The registration check does not certify every employment, tax or immigration obligation. Confirm the separate requirements applying to the assignment and any forthcoming admission rules for its start date.

The employer generally continues at least 70% of wages for up to two years of sickness, with a minimum-wage floor in the first year and potentially higher contractual or collective-agreement pay.

EOR employment does not remove that obligation. Confirm who funds the absence, manages reintegration and bears any extended liability. A fixed-term contract ending during sickness and employees above state pension age require separate treatment.

The usual Dutch chain rule converts employment to permanent status when temporary contracts exceed three successive contracts or three years, subject to statutory and valid collective-agreement exceptions.

For a payroll employee, the client’s applicable chain rules matter; the provider cannot automatically use agency phase contracts. Review earlier contracts, gaps and successive-employer history before renewal or a transfer to your own BV.