Wages in the Netherlands can baffle internationals regarding how it is calculated or how much tax deducted from the salary. That is why Limburg Social Services provides you with some information that helps understand the income amount in the Netherlands.
Gross salary and net income in The Netherlands
One of the most important things to take into account when it comes to your income is the gross salary and the net salary. These two values are different and when talking about your salary, employers often refer to the gross amount.
Gross salary(bruto salaris) is the total amount of your salary before tax and other costs are deducted. In the Netherlands, holiday allowance is a gross payment of 8% of your total gross salary. You should check with your employer whether the holiday allowance is included or excluded from your gloss salary in the payslip.
Net salary (netto salaris) is your salary after income tax, social security payments and contributions for your pension have been deducted. The salary also includes bonuses, 8% holiday allowance, and other benefits such as 30% ruling tax for highly skilled migrants.
Therefore, be sure to check other clauses in the contract to see what would be deducted from your monthly salary so it would not come as a surprise when you check the amount of money being deposited in your bank account by your employer. Use a salary in the Netherlands calculator to get an indication of your net monthly income.
Minimum wages in The Netherlands 2022
The legal minimum wage in the Netherlands is revised every January 1st and July 1st by the Dutch Labour Law. The wage is based on a full working week, which can range between 36 hours to 40 hours per week. By law, everyone working in the Netherlands between the ages of 15 and stated pension age is entitled to the Dutch minimum wage and a holiday allowance.
Prior to signing an employment contract, you should check your payslip for information about your basic pay rate, your holiday allowance to define whether it matches requirements for the minimum wages in the Netherlands.
If you are being underpaid, discuss the matter with your employer first. In some cases, the employer is eligible for permission to pay less than the Netherlands’ minimum wage by the Employee Insurance Agency (UWV). If the agreement is not being met, you should report this to the Inspectorate SZW (of the Ministry of Social Affairs and Employment) or a limited jurisdiction judge. Under the circumstance, it is advisable to consult a union, legal adviser, legal aid center or social counselor before you do.
Your employer is permitted to pay you the wages owing to you within 4 weeks. Otherwise, the penalty payment for underpayment can be up to € 500 per day per employee, or rise up to as much as € 40,000 per employee.
Minimum wage requirements for expat employees in The Netherlands 2022
In order for a foreigner to work in the Netherlands, their employer has to pay them at least the full Dutch minimum wage to issue their Dutch work permit. The policy applies even if the employee is younger than 21 years old and only working part-time.
In terms of income requirements for international workers on highly-skilled migrants visa, a certain salary criterion for their minimum wage is applied.
Knowledge migrant on Orientation Year visa: € 2,497 gross per month
High Skilled Knowledge Migrant under 30 years of age: € 3,484 gross per month
High Skilled Knowledge Migrant 30 years of age, or older: € 4,752 gross per month
European Blue Card Holder: € 5,567 gross per month
*Note: This is the gross salary criteria excluding holiday allowance.