Get the most out of your salary and employment in the Netherlands
Congratulations! You have landed a job at a great company with a good salary and appealing employment terms, and you’re planning on moving to the Netherlands.
However, if you’re about to start your career here as a knowledge migrant or contractor there are a few important things you need to know regarding Dutch regulations and taxation issues, to ensure you get the most out of your employment.
The Dutch Umbrella Company, a WePayPeople company, is a reliable knowledge partner and advocate for expats. They can ease up organising all of your administrative and tax-related obligations.
Because of their close relationship with the Dutch Immigration and Naturalization Service (IND) and available resources in tax consultancy, they know how to fulfil your specific needs and wishes fast, easy and without the usual hassle.
In this article they explain the Dutch regulations and taxation issues that apply to you and offer a useful tool for calculating your maximum net salary: the expat calculator.
If you want to know what your net earnings will be, you can go directly to the Online calculator to calculate your net salary. In addition, you’ll receive an email with detailed information about your salary.
Your salary in the Netherlands
Generally speaking, employees in the Netherlands are being paid monthly or every 4 weeks. In addition to your salary, the majority of companies pays a holiday allowance that equals 8 percent of your base salary.
A bonus at the end of the year, or 13th month of payment, is very common as well. Depending on the sector you work in and/or the job you have, there may also be a premium pay element, supplements for weekend hours or shift work, or a performance-related bonus.
If you’re coming to work in the Netherlands, your earnings are dependent on your job group and salary grade, and possibly a collective labour agreement (CLA). A special CLA is in place for temporary and flexible workers; the NBBU CLA - you can read more on that in this article.
The IND requires you to meet certain income requirements as well, and a number of criteria must be met in order to qualify for the 30% ruling; a special tax regulation that applies to foreign employees in the Netherlands.
The income requirements are subject to change, but you can find an up-to-date overview on the Dutch Umbrella Company website. These are not applicable if you’re being hired by an educational or research institute, or are a postgraduate student or university lecturer under the age of 30. Regardless, if you want to know how to calculate your exact net salary, go to the Online calculator.
Besides your salary, you should take into account Dutch tax regulations. If you live in the Netherlands, you must pay tax in the Netherlands, which also means your employer has to pay specific premiums for national insurance. The wage tax is deducted from your gross salary on a monthly basis.
Tax benefits for expats: the 30% ruling
The Dutch knowledge economy prospers by the influx of highly skilled migrants, and the Dutch government wants to make it more appealing for people to come work here. To attract foreign specialists with specific expertise that is scarce or not available in the Netherlands, the Dutch government introduced a special tax facility called the 30% ruling.
This is a tax advantage for highly skilled migrants in the Netherlands. In short it means that the taxable amount of your gross salary is reduced from 100% to 70%, so that 30% of your wage is tax free. This benefit is applicable to expat employees working in the Netherlands who meet the requirements. This article will give you more information about the 30% ruling and the exact requirements.
You are allowed to make use of the 30% ruling for a maximum period of 8 years. If you want to arrange this quickly and conveniently, the Dutch Umbrella Company can of course assist you in the process.
Assistance to obtain the 30% ruling
The Dutch Umbrella Company offers the following 30% ruling services:
› Explanation of the 30% ruling application criteria.
› Initial screening to determine whether the employee’s circumstances meets the criteria of the 30% ruling.
› Provision of payroll calculations with and without application of the 30% ruling (as required).
› Submission of a proforma application to the Dutch tax authority (as required).
› Provision of document templates and tips on how to fill these out correctly.
› Collation of the application documents and submission of the completed application to the Dutch tax authority.
› Once received, confirmation of the Dutch tax authority’s decision.
› Once received, provision of the official tax ruling to the employer and employee.
› Advice on how to implement the 30% ruling in the payroll administration.
Advantages of working with The Dutch Umbrella Company
The Dutch Umbrella Company is a partner of the Amsterdam Expat Centre and as such a trusted partner representing the interests of expats and highly skilled migrants. They are also fully conversant with current regulations and legislation as these apply to you. The organisation is recognised by the IND as a sponsor, meaning it can provide umbrella services for your job and payroll while you are working in the Netherlands.
Being a financial services provider, the Dutch Umbrella Company ensures you gain maximum benefit from the regulation. In addition to financial services, The Dutch Umbrella Company also offers advice regarding residence and work permits. Many expats, highly skilled migrants and their employers often choose to work with the Dutch Umbrella Company to ensure procedures are completed correctly and more quickly.
Calculate your net salary now
Having read the above, you are most likely curious as to how much of your gross salary you will retain if you work in the Netherlands. Go straight to the Online calculator to calculate your net salary.