Flexible Compensation Packages in the Netherlands

Working in the Netherlands can provide some useful benefits in terms of compensations, thanks to employment laws that enforce positive relations between employees and employers. Knowing these potential benefits is important for both job seekers and employers to better understand what companies are expected to offer in the area of both direct and indirect benefits that make up compensation packages. In the Netherlands, there has been a growing trend of cultivating a work ethos that accommodates the ‘wellness’ of employees, including benefits such as flexible working hours and a higher national minimum wage.

Starting out with the basics, job candidates should expect average wage rates when compared to the rest of Europe. Basic salaries are normally calculated per month or year for full-time employment, and per hour for part-time employment. Income tax is also normally deducted before payment at the end of each month. The average annual salary in the Netherlands is around €25,000 - €30,000, with the national minimum wage being €1,565.40 for workers over the age of 21. In terms of working hours, Dutch law prohibits employees from exceeding 9 hours a day or 45 hours a week. Of course, despite these minimal legal requirements, job seekers should further research specific industries and skills to gain a more accurate picture of what to expect in terms of average earnings and working hours.

When it comes to holidays and personal days, employees in the Netherlands should typically expect a basic annual holiday pay that makes up around 8% of the gross annual salary. This pay is normally paid out before the summer holiday season during May or June. In addition, employees are entitled to at least four weeks of paid leave per year, which exclude public holidays such as Christmas, New Year’s Day, Easter, Pentecost and Kings Day. These are the minimum holiday requirements by law that all employees should expect under Dutch employment, and which should be included in any compensation package.

Typical Dutch employment also provides additional perks in the form of medical insurance, expected as a part of Dutch culture to encourage the well-being of employees, and to keep them healthy and satisfied in their working life. Everyone in the Netherlands is expected to have health insurance; employers normally pay a part of it, while the employee pays the nominal fee which is normally around €95 - €120 per month. The responsibility falls to employers to make a good-value deal with a reputable insurance company to secure the best insurance plan they can for employees. Signing up for health insurance is a legal requirement in the Netherlands and failure to do so can result in paying fines. Basic health insurance covers doctor appointments, some medicine prescriptions, hospital stays, and in some packages dental care is optional. There is a certain sum that first has to be paid by the user of medical services before the coverage kicks in, but this varies depending on the package deal chosen.

Working in the Netherlands can provide a number of compensation packages, some that employers are expected to provide under national law and others that are offered as an optional bonus. Before finding work in the Netherlands, it is imperative for job candidates to familiarise themselves with Dutch labour laws to get a better idea of the basic compensation requirements. This means looking at health insurance plans, average wages and working hours among other things. The best thing to do is research the specific industry you are considering applying for, as different sectors can vary in the expected compensation packages and benefits the can provide that are beyond the national legal requirements.

Edward Mah