Wages in the Netherlands baffling you? No worries, we have you covered! Here’s all you need to know about understanding your Dutch salary, understanding your payslip (because those words can seem quite scary), and other important things to know when working in the Netherlands.
Ahh, working in the Netherlands — it comes with all its joys and complications. That along with understanding wages in the Netherlands. Well, DutchReview is here to make you make sense of it all (aren’t we a kind bunch). In this article, we’re talking about wages you make as an employee. Note that this article won’t help you if you’re a freelancer, but we have plenty of other ones which will give you all the deets on that freelance life.
Before we fully start, let’s look at wages in the Netherlands and what they are like. This differs depending on many different factors, such as age. As it is revised often in order to keep it in line with inflation, this may change (correct from 2020). Note: minimum wage is based on a full-time employee (36-40 hours per week), so that’s what you’re looking at below.
What’s the minimum wage in the Netherlands?
These are the statistics on the minimum wage in the Netherlands — as you can see, it varies depending on your age.
|Age (years)||Per month||Per week||Per day||Per hour|
|21 and older||1.653,60||381,60||76,32||9,54|
Like we said in our other article on working in the Netherlands: If you’re working over here, then the law applies to you, even if another law is present in your employment. Always remember that guys, and that goes for your wages too!
Firstly, when you start working in the Netherlands, you will be given a fixed-term contract. You may be used to be automatically permanently employed, but it doesn’t work like that here. You will have a contract and then they will choose whether to extend it when the time comes. You can have no more than three contracts with one employer and after that you must either be let go or employed permanently.
It’s incredibly difficult to get rid of an employee if they are employed on a permanent contract, so they need to be sure that you’re going to be good to them. It’s also important to note that if you have more than a six-month gap, the contracts restart again (how annoying!)
How has coronavirus changed negotiating a Dutch salary?
Over recent years in the Netherlands, employees have benefited from a small labour market and a strong economy — but coronavirus tore that to shreds. While it’s not impossible to negotiate a payrise in the Netherlands now, you’re not completely out of luck.
Choose your timing carefully, and take note of if you’re in an interest that has actually benefited from coronavirus (they do exist!) Hints of this could be extensions on hiring, having to postpone your vacation, or needing to work overtime.
If you don’t think your employer is in a position to up your salary, consider negotiating secondary benefits as well. Sometimes a manager has more power of these than the actual dollar figure you receive.
Lost your job? We have a whole other article dedicated to that. Anyway, now we’ve covered the basics and wages — what about everything else?
Help! I don’t understand my Dutch payslip
Already working in the Netherlands? Okay then, first of all, let’s tackle those scary Dutch words on a payslip. Here’s a list of words that almost definitely will be present on your payslips:
|Salaris Periode||Period of pay|
|BSN||Dutch social security number|
|Geboortedatum||Date of birth|
|Anciënniteitsdatum/Datum in dienst||Date you started your employment|
|Salaris/uurloon||Gross salary (before tax)|
|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)|
|Gewerkt 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|
If you are eligible for social security premiums, these will also be on your payslip. Some of these include: ZW or Zvw (zorgverzekeringswet) (sick pay), AWBZ (contribution to special health care), AP-premie (disability pension allowance), WW (werkloosheidswet) (unemployment benefit).
Not so scary now, huh? (Or maybe it is . So… many… weird… words… and… numbers.)
What’s the difference between net and gross salary?
You may have got your head around the payslip finally, but are you still a bit confused about what your salary actually is? Well, there is a big difference between your net and your gross salary. So, what’s the difference I hear you ask?
Your net salary is what your salary is after everything has been deducted. This means that things such as pension contribution and social security payments, holiday allowance and income tax have already been taken off. This is basically how much money is going to land in your bank account on payday. To work this out prior, you can use salary calculators!
Your gross salary is basically the complete opposite. It’s how much your salary is without any tax or any other deductions. This is what you would say you earned if someone asked you and what your employer would refer to.
What else is included in my salary?
You may have noticed, but every month you contribute towards holiday pay. On May payday every year you receive this allowance (8% of your annual wage, around one month salary). This helps to pay for the summer holidays. It’s great — it’s just a month with double pay (which is usually spent right away).
You may be eligible for bonuses, and these will be paid out depending on what payday the employer chooses, you will be told beforehand. You could also be given things such as a company car. Other benefits like paying for school fees (especially for highly skilled migrants), can be given by a company. All of these contribute to your total salary.
So there you have it, here are just a few things to know about wages and payslips in the Netherlands. Got it yet? If not, maybe re-read it again about six or seven more times and then quiz the hell out of your boss, who may be toying with your wages.
If you need to know about time off in the Netherlands, we’ve got all the information you need.
Got any questions about Dutch wages? How have your experiences working in the Netherlands been? Let us know in the comments below!
Editor’s Note: This article was originally published in June 2018, but was updated for your reading pleasure in Septemeber 2020. Feature image: Pixabay/Pexels