The individual income tax ranges from 37.07% to 49.50%. Income tax is calculated according to progressive rates.
Gross Annual Income | Applicable tax rate |
---|---|
Up to EUR 73,031 | 36.93 % |
Over EUR 73,032 | 49.50 % |
The employer cost is generally estimated at approximately 20% of the employee salary, estimated on a salary of €66,956 gross, being the maximum salary for social security contributions. Anything below or under this salary will result in different percentages.
Please note that in The Netherlands, by local labor law, employees are entitled to a yearly holiday allowance (8% of salary) which is included in the base monthly salary and invoiced as an employer cost. Depending inter alia on the sector and preferences of offering a pension scheme, a private pension contribution might come on top of the below contributions, which amounts to another 15,7%.
Pension contribution*: 15.7% of employee's pensionable salary + USD 14 admin fee
Note: the 8% holiday allowance is invoiced monthly as an employer cost, separately from the salary. Some cost have limits, so contributions may vary.
One off costs:
*The amount will be calculated considering the employee's working hours. The maximum pensionable salary (capped at EUR 128,810/year for 2023) and a franchise apply to the pension contribution calculations. These amounts may be subject to change annually and according to local regulations.