The stack on top of gross

  • Holiday allowance: 8% of gross, accrued monthly, paid out in May by custom.
  • Employer contributions: social insurance premiums and the employer healthcare contribution — together typically in the range of a quarter on top of gross, varying with sector and salary level.
  • Pension: mandatory in many sectors through industry funds; a real employer share where it applies.
  • Provisions: holiday days accrued, transition-payment reserve, sick-pay risk — Dutch employers carry up to two years of sick pay, the reason many insure it.

The working rule of thumb

Budget roughly 1.3 times gross as the all-in employer cost, sector specifics aside — then let the payroll provider price the exact stack for your sector before the offer goes out, per the payroll setup.

What softens the stack

The work-cost scheme (WKR) gives a tax-free budget for allowances and benefits; targeted exemptions cover travel and home-office norms; and for R&D staff the WBSO reduces the wage-tax bill directly. First-hire sequencing: hiring your first employee.

The four lines behind the calculation

Each component above has its own rules, and three of them reach further than the monthly payslip. Holiday allowance adds 8% on top of gross and lands in May. Sick pay runs for up to 104 weeks with an active reintegration duty. Pension affiliation can apply by operation of law in your sector. And the work-related costs scheme sets how much you can give tax-free on top.

The cost of ending the employment

A complete employer budget includes the exit. A transition payment of one third of a month per year of service applies from the first working day, and most terminations settle somewhat above it through a settlement agreement.

How the payroll itself works

The gap between gross salary and employer cost sits largely in the contributions carried on top rather than withheld: running Dutch payroll separates the two and explains why permanent contracts cost less in contributions than flexible ones. The hourly minimum wage and working time rules set the floor beneath all of it.