From the USA

Hire Your First Dutch Employee: Payroll, Contracts and Costs

Updated: 18 August 2026 Holdwise editorial team USA Hiring Payroll

To hire your first employee in the Netherlands, you register your BV as an employer and run payroll every month. Budget 25% to 30% employer costs on top of gross pay. Start with a fixed-term contract, so you and the employee can get to know each other. This works in the same way for a US-owned BV. At Holdwise, we keep this answer up to date and change it when the rules change.

The costs

Employer costs: plan for 25% to 30% on top of gross salary, for social premiums, pension contributions and insurance.
Holiday pay: 8% of annual salary, usually paid in May. Set money aside for it every month, starting in the first month.
Sick pay: Dutch employers continue to pay salary during illness for up to two years (commonly 70% to 100% by contract). For this reason, most small employers take out sickness insurance.
The 30% ruling: employees you recruit from abroad can receive 30% of their salary tax-free in 2026 (minimum salary €48,013). For senior salaries, the saving is large. See how the ruling works.

Contracts that suit a first hire

Start with a fixed-term contract. The chain rule allows up to three consecutive fixed-term contracts within three years before the role becomes permanent. Add the statutory probation period. Dutch employment law protects staff by design, so fixed-term contracts give both sides time to prove the match.

How to set up payroll

Register the BV as an employer with the Tax Administration. You do this once. It takes a few days and is free.
Choose a payroll provider, or let your accountant handle payroll, usually for a fee per payslip.
Sign the contract, collect the payroll data and run payroll for the first month.

Bookkeeping, filings and deadlines work together too. See corporate services and the compliance calendar.

Compare the Netherlands with Ireland and Germany on tax, substance, running costs and time. See setting up a Dutch subsidiary for a foreign parent company.

The VAT return is due every quarter, the payroll every month and the annual accounts once a year. Read more about this work, and how the monthly amount is calculated, on bookkeeping in the Netherlands.

Starting with freelancers

Many US-owned BVs start with Dutch freelancers on assignment contracts. Later, they employ the freelancers who are a good choice. In this way, you test the market before you start a payroll. See how the contractor market works.

Ready for your first employee? See what Dutch payroll includes for your company.

Free advice

Want our team to have a look?

We help entrepreneurs and international companies with their company in the Netherlands and Europe. Tell us where you stand or what you are planning. You get free advice on your next step.

Part of Doing Business in the Netherlands, the complete 2026 guide.

Frequently asked questions

What does a €60,000 hire cost per year in total? +

Roughly €75,000 to €78,000 in total. That is the gross pay plus 25% to 30% employer costs, including the 8% holiday pay. Use this total for your budget. The amount on the payslip is lower.

Can our US parent employ the person directly instead? +

For work in the Netherlands, you need a Dutch payroll. You can run it through your BV, or use an employer-of-record arrangement while the BV is being set up. See US payroll or Dutch entity.

Is English enough to run a Dutch team? +

Yes, in tech, commerce and professional services. Contracts, payroll and daily work can all be in English. Letters from the government come in Dutch, and your accountant translates the important parts.

Sources Belastingdienst · KVK · wetten.overheid.nl Last updated: 18 August 2026