---
title: "Netherlands Employee Benefits 2026 | Statutory + Competitive"
description: "Netherlands benefits 2026: 20 days statutory leave, 70% sick pay for 2 years, 26-week parental leave, plus competitive pension and healthcare."
canonical: https://www.teamed.global/country-hiring-guides/netherlands/benefits
---

Netherlands · Benefits child

Served by Teamed vetted partner-entity network in the Netherlands

# What *Netherlands employee benefits* must you provide in 2026?

The Netherlands requires you to pay 70% of salary during illness for up to 24 months. That single obligation costs most foreign employers more than every other benefit line combined.

Last reviewed 13 June 2026 · Netherlands guide

![A canal in Amsterdam with traditional Dutch gabled houses reflected in the water on a clear day.](/images/country-guides/netherlands-benefits.webp)

Illustration · Amsterdam, Netherlands

Answer.cite this

The Netherlands has 20 statutory leave days per year. Public holidays are separate.

Sick pay is 70% of salary. You pay it for up to 24 months.

Maternity leave runs 16 weeks. Partners get 1 week birth leave, then can take up to 26 weeks of paid parental leave through the state.

Dutch pension is built into the social security system and sector collective agreements. There is no single national employer pension contribution rate.

![A parent cycling through a Dutch city with a young child in a cargo bike seat.](/images/country-guides/netherlands-benefits-polaroid-1.webp)

Working parents

## What benefits must you provide Netherlands employees by law?

The law sets a floor for leave and sick pay. Employees get 20 days of paid holiday each year. Public holidays are on top of that.

If an employee gets sick, you pay 70% of their salary. You do that for up to 24 months. This is the biggest statutory obligation for most employers in the Netherlands.

| Statutory benefit | Minimum (2026) | Source |
| --- | --- | --- |
| Annual leave | 20 days per year (full-time) | [BW art. 7:634 (Business.gov.nl)](https://business.gov.nl/regulations/holiday-entitlement/) |
| Sick pay (year 1) | 70% of salary | [BW art. 7:629 (Business.gov.nl)](https://business.gov.nl/regulations/sick-pay/) |
| Sick pay (year 2) | 70% of salary | [BW art. 7:629](https://business.gov.nl/regulations/sick-pay/) |
| Maximum sick pay duration | 24 months | BW art. 7:629 |
| Maternity leave (zwangerschapsverlof) | 16 weeks total | [WAZO art. 3:1 (Business.gov.nl)](https://business.gov.nl/regulations/leave-schemes/) |
| Partner birth leave (geboorteverlof) | 1 week paid, day-one right | WAZO art. 4:2 |
| Paid parental leave (ouderschapsverlof) | 26 weeks per parent (9 weeks at 70% via UWV) | [WAZO art. 6:1 (UWV)](https://www.uwv.nl/en/individuals/maternity-and-parental-leave/paid-parental-leave) |
| State pension (AOW) | Funded via social security contributions on salary. No separate employer pension rate outside sector agreements. | AOW / WLZ |

## What does a competitive Netherlands benefits package look like?

Tech and professional services employers in Amsterdam, Rotterdam and Eindhoven go well beyond the statutory floor.

A competitive package typically adds a pension top-up, private health insurance, a travel allowance, a home-working budget, and a 13th-month bonus or profit share.

| Benefit | Typical mid-market cost | What it gets you |
| --- | --- | --- |
| Occupational pension (second pillar, via CAO or bespoke scheme) | 8 to 20% of salary (employer share varies by sector) | Top-up above the state AOW pension |
| Supplementary health insurance (aanvullende verzekering) | 200 to 600 euros per year per employee | Dental, physio, and extras above the mandatory basic insurance |
| Travel or commuting allowance | 0.23 euros per km, capped at 214 euros per month tax-free | Standard market expectation; most employers pay it |
| Home-working allowance | Up to 2.35 euros per day, tax-free | Covers home-office costs; became standard post-2020 |
| 13th-month bonus or holiday allowance top-up | 1 month gross salary at minimum (8% holiday pay is statutory; many add a full 13th month on top) | Retention signal; expected in financial services and tech |
| Learning and development budget | 500 to 2,000 euros per year per employee | Certifications, language courses, conferences |
| Bike plan (fietsplan) | Admin cost plus tax benefit | Salary-sacrifice bike, popular given Dutch cycling culture |
| Mental health and EAP | 50 to 150 euros per year per employee | Counselling sessions, 24/7 helpline |

[Model your loaded benefit cost on the Employer Cost Calculator](https://www.teamed.global/tools/employer-cost) to see the full picture for a specific salary and package.

## What pension contribution should you offer?

The Netherlands does not have a single statutory employer pension rate. State pension (AOW) is funded through social security contributions, not a separate employer scheme.

Occupational pension is the gap your package needs to fill. Most Dutch employees expect it.

Dutch pension works in layers:

- **State pension (AOW, first layer).** Funded via the 27.65% national insurance contribution deducted from the employee's first income bracket. The employer does not make a separate AOW contribution, but pays employer social security on top of gross salary. AOW provides a flat-rate state pension at retirement age.
- **Occupational pension (pensioenregeling, second layer).** If your sector has a collective labour agreement (CAO) that mandates a pension fund (bedrijfstakpensioenfonds), you must participate. Employer contributions typically run 8 to 20% of pensionable salary depending on the scheme. If no CAO applies, you can offer a bespoke group pension scheme. Competitive tech and professional services employers contribute 10 to 15%.
- **Individual pension savings (third layer).** Employees can supplement via tax-advantaged personal accounts (lijfrente). As an employer, you can offer salary-sacrifice contributions into these accounts as a benefit-in-kind.

### Why pension matters more in the Netherlands than many comparable markets

Dutch employees are highly pension-literate. They compare total pension accrual, not just employer contribution rates. If your sector has a mandatory CAO pension fund and you fail to enrol, the fund can claim unpaid contributions backdated to employment start, plus interest. Enrolment compliance is the first check Teamed runs for any Netherlands hire.

For details on CAO applicability and sector pension funds, see the [Business.gov.nl guide to collective labour agreements](https://business.gov.nl/regulations/collective-labour-agreements/).

## Holiday pay (vakantiegeld): the 8% rule and the 13th month

Every Dutch employee is entitled to 8% of their annual gross salary as holiday pay.

It is usually paid in May or June. It is not the same as the 13th-month bonus, although many employers pay both.

The 8% holiday allowance (vakantiegeld) is set by [BW art. 7:634 and the Wet minimumloon en minimumvakantiebijslag](https://business.gov.nl/regulations/holiday-entitlement/). It applies to every employee, regardless of seniority or contract type. For a gross salary of 60,000 euros per year, the statutory minimum is 4,800 euros. It is paid on top of salary.

In practice many employers add a 13th-month payment on top of the holiday allowance. The two are separate:

- **Holiday allowance (vakantiegeld):** statutory minimum 8% of gross annual salary, paid once a year (typically May).
- **13th-month bonus:** not statutory; a market convention in financial services, government-adjacent roles, and some tech employers. Equivalent to one month gross salary, usually paid in December.

Both are fully taxable as income. Neither can be salary-sacrificed into pension without specific scheme rules.

For a hiring manager comparing Dutch total cost against, say, Germany or the UK: the 8% holiday allowance is an invisible line on Dutch salary quotes that non-Dutch employers consistently miss. A 60,000 euro base salary costs 64,800 euros before any other benefit.

## The 2-year sick pay and re-integration obligation: what it means for you

The Netherlands requires you to pay 70% of salary for up to 24 months of continuous illness.

That obligation comes with a parallel re-integration duty. You must actively help the employee return to work. Skipping either part creates legal risk.

Dutch sick pay is the single largest financial surprise for employers new to the Netherlands. The obligation runs for two full years at 70% of salary, with no cap on the salary amount by default (though CAO agreements may specify a salary ceiling for the sick pay calculation).

### The re-integration duty (re-integratieverplichting)

Running parallel to sick pay is a statutory re-integration obligation under the Wet verbetering poortwachter (Gatekeeper Act). From day one of sick leave you must:

- Log the absence and start a sickness report within six weeks via your occupational health service (Arbo-dienst).
- Agree a problem analysis and plan of approach with the employee by week eight.
- Review the plan regularly with the employee and the Arbo-dienst.
- Demonstrate that you have explored every option for return-to-work, including adapted duties or a different role.

If UWV (the Employee Insurance Agency) reviews the file at the 2-year mark and finds your re-integration effort was insufficient, it can extend your sick pay obligation by up to one year. That means up to three years of 70% salary cost for a single absent employee.

### What this means for your benefits structure

Most Dutch employers carry a two-year income insurance policy (verzuimverzekering) to cap the financial exposure. The policy costs roughly 2 to 5% of insured salary per year depending on sector, absenteeism history, and whether the employer is self-insured (eigenrisicodrager) for the first year. The insurance does not remove the re-integration duty, but it transfers the financial risk.

Teamed administers the Arbo-dienst relationship, tracks the re-integration milestones, and coordinates with UWV on your behalf.

## How does Teamed handle Netherlands benefits for you?

Teamed becomes your legal [employer of record](/lp/employer-of-record) in the Netherlands for [**from $599 per employee per month**](/pricing), with **zero FX mark-up** in any currency.

Payroll, statutory benefits, and the full Netherlands employment law stack run on **one platform**.

**Real HR and legal experts** manage holiday allowance calculations, sick pay tracking, re-integration coordination, and CAO pension enrolment. **An actual person**, not a chatbot or a pooled queue. There is **no setup fee** and **no exit fee**. Employer cost **passes through at cost, itemised** on every invoice.

What is included in Teamed's standard EOR fee for the Netherlands:

- Payroll with monthly Dutch tax and social security filings
- Statutory holiday allowance (8% vakantiegeld) calculation and payment
- Sick pay tracking and re-integration duty management (Arbo-dienst coordination)
- Parental and maternity leave administration (UWV filings)
- Annual leave accrual tracking
- CAO applicability check on hire
- Baseline occupational health service (Arbo-dienst) access

What clients pass through at cost on the invoice:

- Occupational pension contributions (second-layer occupational pension, above AOW)
- Supplementary health insurance premiums
- Travel and home-working allowances
- Verzuimverzekering (income insurance against long-term absence)
- Learning and development budget
- 13th-month bonus (if the client chooses to offer it)

EOR payroll, contractor onboarding, and entity setup all live on one platform. A Netherlands contractor who converts to direct employment keeps their record. That same employee can **graduate** from EOR to your own Netherlands entity without switching systems. EOR is the right structure for a first Netherlands hire, **until it isn't**. Run the [Crossover Calculator](https://www.teamed.global/tools/crossover-calculator) to see the month your Netherlands hire is ready to move to your own entity. Start from the Netherlands hiring overview.

Key sources: [Business.gov.nl sick pay](https://business.gov.nl/regulations/sick-pay/), [Business.gov.nl leave schemes](https://business.gov.nl/regulations/leave-schemes/), and [UWV paid parental leave](https://www.uwv.nl/en/individuals/maternity-and-parental-leave/paid-parental-leave).

1. Check CAO applicability Before making an offer, confirm whether a collective labour agreement (CAO) applies to the role. CAO terms override the statutory floor on pension, holiday allowance, and sick pay.
2. Enrol in the right pension scheme If a sector pension fund applies, enrol from day one. Late enrolment means backdated contributions plus interest.
3. Set up your Arbo-dienst contract You are required to have an occupational health service in place before the employee starts. Teamed handles this for EOR hires.
4. Confirm the holiday allowance date Agree with the employee whether vakantiegeld is built into monthly salary or paid as a lump sum in May. Both are legal; lump sum is the norm.
5. Model the sick pay exposure For roles with higher absence risk, review whether a verzuimverzekering (income insurance) makes sense. Teamed can advise on typical costs for the sector.

## Frequently asked questions

How many days of annual leave must Netherlands employees receive?

The statutory minimum is 20 days per year for a full-time employee (40-hour week). The Netherlands has approximately 11 public holidays per year. Unlike the UK, public holidays are not included in the statutory leave count; they sit on top of it. Many CAO agreements and employer practices add extra days above the minimum.

How does sick pay work in the Netherlands?

You pay the employee 70% of their salary for up to 24 months of continuous illness. Both years run at the same rate. You cannot claim state reimbursement during this period (unless you are registered as an eigenrisicodrager with UWV). Most employers carry a verzuimverzekering (income insurance) to cap this exposure.

What is the statutory holiday allowance (vakantiegeld)?

Every employee is entitled to 8% of annual gross salary as holiday allowance, under the Wet minimumloon en minimumvakantiebijslag. For a 60,000 euro base salary, that is 4,800 euros. It is usually paid in May or June. It is separate from any 13th-month bonus the employer chooses to offer.

What is the maternity and parental leave structure in the Netherlands?

Mothers receive 16 weeks of maternity leave (before and after birth), paid by UWV. Partners receive 1 week of paid birth leave immediately after the birth, plus the right to take up to 5 additional weeks within 6 months (WIEG leave), paid at 70% of salary via UWV. Each parent may then take 26 weeks of parental leave, of which 9 weeks are paid at 70% via UWV.

Does the Netherlands have a statutory employer pension contribution?

There is no single statutory employer pension rate in the Netherlands. State pension (AOW) is funded through employee social security contributions. Occupational pension (occupational pension layer) depends on whether a collective labour agreement (CAO) applies to the role. If a sector pension fund is mandatory and you miss enrolment, the fund can claim backdated contributions plus interest. Teamed checks CAO applicability on every Netherlands hire.

What is the re-integration duty during sick leave?

Running alongside the 24 months sick pay obligation is a statutory re-integration duty under the Wet verbetering poortwachter. You must actively support the employee's return to work, file reports with UWV, and maintain an Arbo-dienst (occupational health service) relationship. If UWV finds your re-integration effort was not enough, your sick pay obligation can be extended by up to one year beyond the standard two years.

Teamed Legal Operations

Every foreign employer we onboard in the Netherlands underestimates the sick pay obligation. It is not a day-one risk, but by month six of an employee absence it is the largest single cost on the account. The re-integration duty is what turns a recoverable situation into a year-three extension.

A note from Tom Price-Daniel

In the Netherlands, 70% sick pay for up to 24 months is the obligation most foreign employers find out about too late.  
The 8% holiday allowance, sector pension enrolment, and the re-integration duty add layers that standard payroll software will not catch.  
Get the floor right before you build the package. The gap between compliant and competitive in the Netherlands is smaller than most markets.

Tom Price-Daniel · Co-founder, Teamed

## Related Netherlands guides

- Hiring in the Netherlands, overviewparent
- [Netherlands employer cost breakdown](/country-hiring-guides/netherlands/cost-breakdown)sibling
- [Netherlands tax and payroll](/country-hiring-guides/netherlands/tax-and-payroll)sibling
- [Netherlands termination and severance](/country-hiring-guides/netherlands/termination-and-severance)sibling
- [Netherlands EOR vs entity](/country-hiring-guides/netherlands/eor-vs-entity)decisive
- [Employer of Record overview](/lp/employer-of-record)core
- [Employer Cost Calculator](https://www.teamed.global/tools/employer-cost)tool
- [Talk to an expert](https://www.teamed.global/contact)CTA

A note on this page.

This is a guide, not legal, tax or accounting advice. Rules change and vary by jurisdiction. Verify current requirements with Business.gov.nl and the Belastingdienst for the Netherlands, or speak to a qualified professional, before relying on any specific framework.