Employer Tax Contributions

Tax Type	Rate	Base
Health Insurance Act (ZVW)	6.51% (employer contribution)	Employee's base salary, capped at €75,864
Social Security (Employee Insurance)	Varies by industry and contract type (e.g., Unemployment Insurance 2.74% or 7.74%; Occupational Disability Insurance 6.28% or 7.64%)	Capped at €75,864
Work-Related Costs Scheme (WKR)	2.00% (first €400,000 of wage bill), 1.18% (excess above €400,000)	Total fiscal wages

Filing & Compliance

• Payroll tax returns are usually due monthly or every four weeks.
• Income tax returns are typically due by May 1st of the following year. An extension can be requested before May 1st.
• Employers must provide an annual income statement (Jaaropgave) to employees by the end of February for the previous tax year.

In the Netherlands, employers are responsible for deducting various taxes and contributions from employee salaries, including payroll tax, social security contributions, and healthcare contributions. Additionally, certain tax benefits and deductions can apply, impacting the final net pay.

Payroll Tax

• Wage Tax: This is a progressive tax, meaning the rate increases with income. As of 2025, the tax brackets and rates are:
  • Up to €38,441: 35.82%
  • €38,441 to €76,817: 37.48%
  • Above €76,817: 49.50%
• Tax Credits: Employees may be eligible for tax credits that reduce their overall tax burden.
  • The general tax credit in 2025 is €3,068 for incomes up to €24,813, decreasing for higher incomes. The employment tax credit is €5,599, decreasing for taxable profits above €43,071.

Social Security Contributions

• National Insurance: Contributions are levied on income up to €38,441, capped at €10,628 annually. These contributions are not deductible from taxable income.
• Other Social Security: Employers also deduct contributions for other social security programs, such as unemployment insurance and the Work and Development Fund (Werkloosheidsfonds and Ontwikkelingsfonds).

Healthcare Contributions

• Employer Healthcare Contribution: Employers pay an income-dependent contribution towards employee healthcare.
• Employee Healthcare Contribution: A portion is also deducted from the employee's salary.

30% Ruling

• Eligibility: This ruling allows employers to offer a tax-free allowance to eligible expats to compensate for extraterritorial costs. Certain conditions apply, including a minimum salary threshold. The employee should have specific expertise not readily available in the Dutch labor market.
• Changes: As of 2024, the 30% ruling has been scaled back, with a phased approach (30%, 20%, 10%) over a period of time. The cap for the ruling is based on the WNT norm (€246,000 in 2025), resulting in a maximum tax-free reimbursement of €73,800 per year. There are plans to partially reverse this scaling back in 2027, reverting to a 27% ruling.
• Salary Thresholds: For 2025, the general salary threshold is €46,660 (excluding the 30% reimbursement) and €35,468 for certain individuals (excluding the 30% reimbursement).

Work-Related Costs Scheme (WKR)

• The WKR allows employers to provide tax-free benefits to employees, like gym memberships.
• In 2025, the free allowance is 2% of the taxable wage sum up to €400,000, with 1.7% for the portion above €400,000.

Other Deductions

• Deductible Expenses: Certain work-related expenses, such as business travel or moving expenses can often be reimbursed tax-free by the employer.
• Non-Deductible Expenses: Some employer-covered expenses, like certain meals and entertainment, are only partially deductible for tax purposes. The non-deductible portion is 0.4% of the total taxable wages, with a minimum of €5,600.

Deadlines and Procedures

Employers must withhold taxes and contributions and remit them to the Dutch tax authorities according to established deadlines. Payroll tax returns must be filed periodically. Specific regulations and procedures exist for applying for the 30% ruling and managing the WKR.

Other Considerations

• Minimum Wage: Deductions cannot bring an employee's salary below the statutory minimum wage.
• Settlements: Final settlements for terminated employees must include accurate calculation and deduction of taxes and contributions.
• Garnishment: Employers are obliged to comply with court orders regarding wage garnishment.

This information pertains to the 2025 tax year and is current as of February 5, 2025. Tax laws and regulations are subject to change. Always consult with a tax advisor for personalized guidance.