Contracts and Pay in the Netherlands (EU Workers) — What You Need to Know

Important: This page provides practical guidance, not legal advice. Your rights and pay details may depend on your employment contract, your sector’s collective labour agreement (CAO/CLA), and your role.

1) Contract Basics (Netherlands)

Main contract types
  • Fixed-term (temporary) contract: ends on a specific date or after a defined period.
  • Indefinite-term (permanent) contract: no fixed end date.
  • On-call / variable-hours arrangements: hours may vary; terms should clearly explain scheduling and pay.
  • Temporary agency work: you work at a client company, but your legal employer is the agency; confirm which CAO applies.

A CAO can set higher standards than the legal minimum (pay scales, allowances, overtime, travel costs, extra leave).

What must be clear in your contract (minimum essentials)
  • Employer identity (and agency/client identity if applicable).
  • Job title / duties and work location(s).
  • Contract duration (fixed-term/permanent) and start date.
  • Working hours (weekly hours, shift patterns, on-call rules, scheduling process).
  • Pay: hourly/monthly wage, allowances, overtime rules, payment frequency, and holiday allowance arrangement.
  • Applicable CAO (if any) and internal policies that affect pay/time (handbook, expense policy, bonus policy).
  • Notice terms and any probation period clause (if applicable).
Probation period (trial period) — key points
  • Probation must be agreed in writing to apply.
  • Maximum probation length depends on contract duration/type; short fixed-term contracts may have no probation allowed.
  • During probation, termination can be faster, so ensure you understand the clause before signing.

2) Pay Essentials in the Netherlands

Minimum wage

  • The Netherlands has a statutory hourly minimum wage (age-based).
  • Example: 21+ = €14.71 gross/hour (1 January 2026).
  • Rates are adjusted periodically; always verify the current statutory amount.

If a CAO applies, your wage may be higher than the statutory minimum.

Holiday allowance (vakantiegeld)

  • Employees are generally entitled to at least 8% holiday allowance on gross annual salary.
  • Often paid once per year (commonly around May/June), unless contract/CAO specifies a different method.
  • Holiday allowance may also apply to certain pay components such as overtime and irregular-hours allowances, depending on the rules.
Gross vs. net pay: what deductions to expect
  • Gross pay is your wage before taxes and social security.
  • Net pay is what you receive after deductions (wage tax, social security contributions, and any agreed deductions).
  • If housing/transport or other costs are deducted, it must be transparent and lawful; always request a written breakdown.
Payslips (loonstrook): when you must receive them and what they show
  • Your employer must provide a payslip at the first wage payment and when something changes in pay or payroll taxes; many employers provide one each pay period.
  • A payslip should show, at minimum:
    • Gross wages and the wage breakdown (base wage, overtime, allowances, bonuses where applicable).
    • Deductions/withholdings and employer/employee contributions where relevant.
    • Net wage paid and payment period.
    • Holiday allowance accrual/payment and other accruals (if applicable).
Overtime, shift allowances, and variable pay
  • Overtime rules differ by sector and CAO. Confirm:
    • When overtime starts (daily/weekly threshold).
    • Whether overtime is paid or compensated with time off.
    • Applicable overtime percentage or fixed allowance.
  • Shift work / irregular hours often include allowances; the CAO may define exact percentages and eligibility.
  • Performance bonuses/commissions should be described in writing (targets, measurement method, payout date, clawback rules).
How you are paid: frequency, bank transfer, and records
  • Pay frequency is usually monthly or every 4 weeks—this should be stated in your contract and reflected on your payslip.
  • Keep your payslips, contracts, and schedule records; they are essential if there is a dispute.

3) Before You Sign: Practical Checklist

Confirm these items in writing

  • Hourly/monthly wage and pay scale level (if CAO).
  • Working hours, break times, shift pattern, and scheduling notice.
  • Holiday allowance: how/when paid (lump sum vs. built-in/periodic).
  • Overtime/allowances: when applicable and how calculated.
  • Any deductions (housing, transport, tools, meals) and the calculation method.

Red flags to address immediately

  • No clear employer identity or unclear agency/client responsibilities.
  • Pay is “all-in” without explaining holiday allowance, overtime, and allowances.
  • Deductions not explained or not itemised on the payslip.
  • Contract terms differ from what was promised verbally.

Need help reviewing your contract or payslip? Contact us and include: your contract type, weekly hours, gross wage (hourly/monthly), CAO (if named), and a brief description of the issue.