Thinking of taking a job in the Netherlands? Good for you, that’s a courageous move and I’m proud — now let’s get down to business and talk Dutch salaries.
Did you know that the Netherlands is the eighth highest-paying country in the world? Yep, that’s a real advantage of life here.
However, before your eyes turn to € signs and you sign that contract, there are a number of important things you need to know about salaries in the Netherlands.
Take it from someone who has lived and worked here for the past six years.
Salaries in the Netherlands
While the Netherlands may rank as one of the best-paying countries in the world, it’s important to note that the amount that you get paid, of course, depends on the type of wage you are receiving.
Let’s start with discussing wages in the Netherlands.
I turned to the experts on all things related to working in the Netherlands — Adams Multilingual Recruitment. This agency does exactly what it says on the tin: help internationals based in the Netherlands find work!* But that’s not all, they also help employers based in the Netherlands to find multilingual employees!
What’s the minimum wage in the Netherlands in 2024?
What may be a surprise to some is that the minimum wage in the Netherlands actually varies based on your age.
As of January 2024, hourly minimum wage for a person over the age of 21 in the Netherlands is €13.27.
What’s the average salary in the Netherlands in 2024?
According to the Dutch Central Planning Bureau, it is expected that in 2024, the average annual salary will stand at €42,236.
In 2023, people in the Netherlands enjoyed a net salary of €3,086 per month. In 2024, you can expect to pocket at least an extra €79.17 per month due to tax benefits, which means you will pay less income tax.
However, life is often, well, not average — and the same goes for your salary. Depending on your job, your salary is going to be higher or lower than this number.
Decided to take the plunge and find yourself a job in the Netherlands? Or in search of employees fluent in German, French or any other language? The team at Adams Multilingual Recruitment are the experts when it comes to finding work in a variety of sectors in the Netherlands. Contact them now for the hand-up that you need!
Inflation and Dutch salaries in 2024
The past few years have seen the cost of living in the Netherlands skyrocket to new heights. With living costs rising by as much as 14.5% towards the end of 2022, many of us entered 2023 with an intense need for a pay raise. While inflation has calmed down a bit since then, many of us could still do with a pay raise in 2024.
READ MORE | The cost of living in the Netherlands in 2024
Thankfully, as we have seen, the Dutch government addressed this by raising the minimum wage in the Netherlands by 10.15% — but what can we expect in 2024?
Well, according to the Central Planning Bureau, it is forecasted that those with an average wage will see their net income rise by an average of 5.6% in 2024.
Minimum wage workers will see their salaries rise the most this year. In fact, according to the ADP, anyone in the Netherlands who works a 40-hour week on minimum wage can expect to receive four extra hours worth of pay per week.
In particular, it appears 2024 is a good year to work in catering and construction. With catering staff set to receive a wage increase of between 8 to 12% and construction workers pocketing an extra €205 per month on average.
What’s the difference between Bruto salaris and Netto salaris?
Once you’ve dressed to impress and knocked the socks off your Dutch employers during your interview, you will be offered a salary.
But before you get too excited about the numbers, you will be hearing two different figures: these will be your Gross and Net salary — and it’s important you know the difference!
What is Bruto salaris in the Netherlands?
One will be the amount that you will get paid before tax and other deductions — this is your Bruto salaris and you won’t get to keep it all.
What is Netto salaris in the Netherlands?
Netto salaris represents the money you get to keep after tax and all other deductions.
Picture one of those cycle bins that catch cyclists’ rubbish as they zoom by. Ok great, now think of your Netto salaris as how much money actually hits the back of the net and lands in your bank account.
TIP: It’s important when discussing your salary that you are certain of how much Netto salary you are going to receive. The salary that your employer offers may be the figure before deductions such as tax, benefits, and your pension are taken — be sure to clarify this!
How much of your salary will be taxed in the Netherlands?
Now, after all that talk of Netto and Brutto salaries, you’re probably wondering just how big a bite the Dutch tax system will take out of your wages.
In the Netherlands, there are two different tax brackets in 2024. Depending on your home and work income, you will be taxed a certain percentage. Let’s lay them out for you.
TAXABLE INCOME OF: | TAX RATE |
---|---|
Less than €75,518 per year | 36,97% |
Above €73,518 per year | 49.5% |
What’s included in your Dutch salary?
Yes, taxation is high in the Netherlands — but being employed in the Netherlands also has its perks — namely, a number of benefits.
Holiday pay (vakantiegeld)
In the Netherlands, you will receive at least 8% of your gross wage in holiday pay.
Employers will usually pay this to you as a lump sum between May and June, however, it can also be distributed a little at a time each month, depending on your contract.
Note: If you are an intern, a freelancer, or earn three times the Dutch minimum wage, you are not eligible for holiday pay in the Netherlands.
‘The 13th month’
In any job, there is always the chance that you may receive a bonus. But in the Netherlands, some companies offer what has been coined the ‘13th month’ under certain contracts (spoiler: the better ones.)
If your salary includes a ‘13th month’, then you will essentially receive an extra month’s pay! It is usually given before the holiday period in November or December and also equals to 8.33% of an employee’s salary.
Sick leave
In the Netherlands, most work contracts will also cover you for sick leave. Under Dutch law, your employer should pay you 70% of your wages if you are sick during your contract.
If you are sick for a long period of time, you don’t have to worry about your employer dropping you.
In fact, under Dutch law, an employer should pay sick leave for up to 104 weeks of sickness.
A great work-life balance
Ok, this is not exactly a monetary benefit that can be found in your Dutch salary — but it’s certainly a benefit that I enjoy. In the Netherlands, a good work-life balance is highly valued.
READ MORE | The work-life balance in the Netherlands is the best in the world
This means that you’re not expected to bring your work home with you “as part of the company culture”, and it’s great.
How to understand your Dutch payslip
Once you have found yourself a job and a salary to go with it, you may need a hand understanding that pesky payslip! And we don’t blame you. As an international in the Netherlands, it can be a bit overwhelming.
Luckily, we’ve broken down all that difficult vocab for you. 😉
DUTCH | ENGLISH |
---|---|
Salaris Periode | Period of pay |
Personeelsnummer | Employee number |
BSN | Dutch social security number |
Geboortedatum | Date of birth |
Afdeling/Functieomschrijving | Job role |
Anciënniteitsdatum/Datum in dienst | Date you started your employment |
Salaris/uurloon | Gross salary (before tax) |
Minimumloon | Minimum wage |
Verzekerd voor WW/WiA/ZW/Zvw | Social security you contribute to |
Bijz. tarief/heffingskorting (ja/nee) | Tax rate (percentage)/general tax credit (yes or no) |
Gewerkte uren | Hours worked |
Sociale verzekeringen (SV) | Social security contributions |
Reiskostenvergoeding | Transport reimbursement cost |
Totaal Netto | Net salary after everything — what you receive in your bank account |
Vakantiegeld | Holiday leave |
All caught up on your Nederlands? We’re proud of you. Now there’s only one thing left to do:
Get yourself that Dutch salary
Now that you know all there is to know about your Dutch salary, it’s time to go out there and get one!
One way to begin your journey is by turning to international recruitment agencies. Register with Adams Multilingual Recruitment and they will help get you in the door of the Dutch labour market! 💪
How have you experienced working in the Netherlands? Tell us your thoughts in the comments below!
* Note: Adams Multilingual Recruitment cannot provide visas to internationals who are looking for work. You must hold an EU or EEA citizenship or an EU work permit to benefit from their services.
There is no deduction from your salary for holiday allowance. As stated, it’s 8% almost a whole month’s salary. But the difference in net pay is greater because, for example, you pay more for WAO (Disability Insurance).
Hi!
Are there any rules which state that every year the salary must be revised? Or does it depend on the agreement between the employee and employer?
Hi, Shubham,
There are no such rules and the employer and employee are free to agree on this. Most often there is no wording on this matter at all in the employment agreement. It can also be that there is a collective labor agreement (CAO) applicable which can be of influence on the salary increase.
At times, the employment contract would say that the employee is eligible for salary increase in the appraisal cycle of so and so year.
I see a term in my Dutch salary Slip that says, “Eenm. uitkering CAO”. Don’t know what that is. Could you help?
Hi Naina, it means ‘one time payment under Collective Labor Agreement’. Sometimes It is agreed under Collective Labor Agreements to have a one time payment next to an increase of salary. For example if the gas prices are temporarily very high.
Sorry for bothering. I wonder if you can help me with an issue. I dont know what is the “Verrekening” and I also don’t understand why do they charge me 104 euros. Can you please help me to understand it? Thank you in advance
I wanted to know if there is any minimum salary thresh hold for chefs employed in the Asian catering industry from level 4 to 6 ?
Thanks for advising
Which type of jab provide
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