Foundational

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Income Protection / Disability

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Key Features – How Does It Work?

In the Netherlands, employee income protection starts with the statutory system. Employers have an obligation to continue paying at least 70% of an employee’s salary for the first two years of sickness (loondoorbetalingsverplichting), although this is limited to the statutory maximum daily wage if the employee’s salary is higher. Many employers pay more than the statutory minimum, often 100% in the first year and 70% in the second, which are often outlined in collective agreements or individual employment contracts.

If an employee is still unfit for work after two years, they may qualify for IVA or WGA benefits, which are government-provided disability allowances. The IVA benefit is for people who are unable to work or have a small chance of recovery. The WGA benefit is for employees who are partially disabled (with 35 - 80% loss of earning capacity) or temporarily fully disabled but expected to return to work. Any benefit is calculated as a percentage of previous income, with an annual maximum called the WIA threshold (€75,864 in 2025).

Because government benefits are capped and do not replace an employee’s full income, many Dutch employers offer group disability insurance, also known as supplemental income protection, as part of their employee benefits package. WGA Gap Insurance (WGA-hiaatverzekering) supplements the government WGA benefit for employees earning up to the WIA threshold. WIA Excedent Insurance (WIA-excedentverzekering) is a similar product designed for higher income employees, covering income loss above the WIA threshold. Employers tend to purchase both policies to ensure that employees with different salaries are appropriately covered.

Cost and Funding

Dutch employers typically arrange and fund group income protection insurance as part of their employee benefits. In some cases, the employer may offer this as a voluntary benefit with employees choosing whether to pay for their own cover. Pricing is based on the size and risk profile of the workforce. WGA Gap Insurance costs less per employee but applies to more staff, making it costlier in total. WIA Excedent Insurance, by contrast, costs more per person but is usually limited to a smaller group of high earners.

Taxation

Premiums paid by the employer are tax deductible as a business expense. In this case, the premium is not considered a taxable benefit in kind for the employee. If the employee contributes to the premium, this amount is deductible from income tax. Any benefit paid out under an insurance policy is treated as regular income and subject to income tax and social security contributions.

Implementation and Administration

Employers should partner with an insurer, or work with their broker, to choose a policy and define the scope of coverage. HR should handle the enrolment while the insurer manages any claims process directly with the employee. Most policies are managed digitally, including tracking claims.

Other Considerations

Employers should check whether their collective labour agreement requires them to provide this insurance. Beyond financial support, many group policies also include added-value services such as mental health support and return-to-work programmes, which can help reduce long-term absence. It is also important to inform employees that cover typically ends when they leave the company, unless they are offered an option to continue it privately.

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Life Insurance

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Key Features – How Does It Work?

Group life insurance policies (known locally as collectieve overlijdensrisicoverzekering) pay a lump sum to an employee’s nominated beneficiary if they pass away during their employment. The insured amount is normally a multiple of the employee’s annual salary. It is often bundled with a pension scheme. This insurance is frequently included in collective labour agreements, making it a common offering in a benefits package.

Cost and Funding

Group life insurance is usually paid for by the employer. Premiums are calculated based on workforce factors such as age distribution, insured amounts, and overall risk profile. Some employers offer the option for employees to purchase enhanced levels of cover at their own cost.

Taxation

Premiums paid by the employer are tax deductible as a business expense and are not treated as a benefit in kind for the employee, meaning no additional income tax is owed on the cover itself. When a claim is paid out, the lump sum benefit is typically tax-free for the beneficiary, though inheritance tax (erfbelasting) may apply depending on the beneficiary’s relationship to the employee and the total amount received.

Implementation and Administration

Employers should partner with an insurer, or work with their broker, to choose a policy. The HR team is typically responsible for enrolling employees and keeping insured amounts up to date, including with salary changes that affect the lump sum amount. Most insurers offer digital platforms to manage policies, including allowing employees to designate a beneficiary. Claims are processed and paid directly by the insurance provider.

Other Considerations

Employers should check whether their collective labour agreement includes any obligations around life insurance, such as minimum coverage amounts or integration with pension benefits. It is also important to inform employees that cover typically ends when they leave the company, unless they are given the option to continue the policy privately.

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Private Health Insurance

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Key Features – How Does It Work?

Anyone who lives or works in the Netherlands must take out a basic health insurance policy (basisverzekering) with a Dutch insurer. The government determines what is included in a basic package as well as the cost of the deductible. Although basic premiums may vary by insurer, the price cannot be adjusted based on age or health profile. As a result, every customer of a single insurer is charged the same premium, leading to a relatively small price range across the industry. The legal obligation for the basic insurance must be fulfilled individually, meaning each employee must hold their own policy.

To support or supplement this requirement, many Dutch employers operate allowance models or offer a group policy for supplementary insurance (aanvullende zorgverzekering). For allowances, employers can help by offering a flat rate allowance to employees to cover the cost of basic insurance, or by reimbursing submitted receipts. Alternatively, employers can offer group supplementary insurance, which includes enhanced cover such as dental, physiotherapy, and additional mental health services. Employers can negotiate group rates to make this insurance more affordable. Employers may include this cover as part of an employee benefits package or offer it as an optional benefit during onboarding or renewal.

Cost and Funding

The cost and funding model will depend on how an employer chooses to offer this benefit. To subsidise or fund basic insurance, employers can offer a fixed monthly or annual allowance to cover premiums. Similarly, they can ask employees to submit receipts for reimbursements, either in full or as a set proportion (e.g., the employer covers 50% of the premium). In this model, the cost will be relatively uniform across employees. In 2025, the average monthly premium for basic insurance is around €155 per person, depending on the insurer and chosen deductible.

If opting for group supplementary insurance, employers may offer access to a policy, but require employees to pay the premium. Finally, employers may fully fund a group policy. Premiums for supplementary insurance are significantly lower than for basic coverage, averaging around €20 per month per employee.

Taxation

Under the work-related costs scheme (WKR), employers can provide subsidies or fixed allowance up to the free space threshold. Any benefits exceeding this amount are tax-free for employees but trigger an 80% tax levy paid by the employer. If the payment falls outside this category, it is treated as a taxable benefit in kind.

For employers who fund premiums in a supplementary model, the payments are considered a business expense and are tax deductible. For the employee, it will be considered a benefit in kind.

Implementation and Administration

If operating an allowance model, payroll teams typically manage any subsidies or reimbursements. There should be a clear internal policy which outlines eligibility, submission deadlines, and how reimbursements are paid.

To implement a collective health insurance scheme, employers work with an insurer or broker to define the coverage and pricing. For supplementary insurance, employees should be invited to enrol during an annual window. HR teams communicate the offering and manage payroll integration if there is an employer contribution. Most insurers provide digital portals where employees can manage their policy, update personal information, and access extras like preventive health tools.

Other Considerations

Employers should make clear that participation in a collective health insurance plan does not remove the employee’s obligation to personally hold a valid basic policy under the Dutch health insurance system. While enrolment in basic insurance is possible at any time, switching insurers is typically only permitted during the annual open enrolment period in December for the following calendar year.

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Retirement Funds

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Key Features – How Does It Work?

Like many Western European countries, the Netherlands operates a three-pillar pension system. The state pension (Algemene Ouderdomswet (AOW)) is a basic income paid by the government to everyone who has lived or worked in the Netherlands, starting at the official retirement age (67 in 2025). The amount depends on the number of years the person has been insured under AOW. The second pillar is the occupational pension, arranged by the employer. The third is the individual on the private market.

An occupational pension is a scheme provided through an industry-wide pension fund or a contracted insurer. Depending on the structure of the fund, both employers and employees can make tax-advantaged contributions which are managed as part of a collective investment. Employees can access these accounts upon retirement. The Future Pensions Act (Wet toekomst pensioenen) requires all pension providers to transition to a defined contribution model by 2028.

Cost and Funding

Occupational pensions are funded jointly by employers and employees. The exact contribution levels vary by agreement, with no national minimums, though some collective agreements will have requirements.

Common employer-to-employee contribution splits include 70/30 or 50/50, with contributions totalling between 20% to 30% of the employee’s salary. The calculation is done on the pension base, which is the employer’s salary (including holiday pay) minus the state pension (AOW threshold).

Taxation

Employer contributions are tax-deductible as a business expense and employee contributions are made from gross income, making contributions tax-advantaged for both parties. Investment growth is also not taxed during the accrual phase. Employees pay income tax when receiving the pension in their retirement.

Implementation and Administration

Employers who are covered by a mandatory industry-wide pension scheme must automatically register new employees and follow the fund’s administrative procedures. For company-specific pensions, employers can choose their own provider and set up a contract directly. Contributions are managed through payroll and transferred to the pension provider each month. With the shift to defined contribution schemes, employees must be regularly informed about their projected pension outcomes and have access to digital pension tracking tools that are managed by the government.

Other Considerations

Employers should check whether their sector imposes mandatory pension participation and contributions. Employers should ensure they are complying with the new rules by the 2028 deadline. Retirement funds are not portable across all schemes, so when employees change sectors, they may start accruing pension rights in a different fund.

Family

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Carer's Support

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Key Features – How Does It Work?

In the Netherlands, the primary form of employee carer’s support offered by employers is through an informal care broker (mantelzorgmakelaar). These brokers help caregivers by completing administrative tasks related to care, such as arranging home care services, managing healthcare reimbursements, and handling applications for government-funded care or allowances. The goal is to reduce the strain on employees balancing work and caregiving. Employers may refer staff to a freelance broker, connect them through supplementary health insurance, or partner with an intermediary organisation that manages access.

Cost and Funding

Costs vary depending on the provider and level of support. Employers may fund this benefit directly by contracting an informal care broker or paying a subscription fee to access services through a provider. Employers may cover the full cost or set a capped allowance for individual use. Health insurers or municipalities may also offer support or reimbursement for care brokerage services.

Taxation

If structured under the work-related costs scheme (WKR), employer-paid benefits may be offered tax-free up to the free space threshold. Any benefits exceeding this amount remain tax-free for employees but trigger an 80% tax levy paid by the employer. Otherwise, it is treated as a benefit in kind and subject to income tax and social contributions. Any employee contribution is paid from net salary.

Implementation and Administration

Employers can implement the benefit by contracting a freelance informal care broker or working with an intermediary organisation. HR teams manage internal communication and referrals but the service is provided confidentially and directly to the employee. This ensures discretion for the employee while minimising HR involvement. No formal enrolment is required, and services can be delivered remotely or in-person, depending on the provider.

Other Considerations

Unlike in some countries that offer full-service eldercare support, this approach is more decentralised. Mantelzorgmakelaars offer a solution that fits within the broader Dutch emphasis on individual responsibility and limited employer interference.

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Childcare Support

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Key Features – How Does It Work?

In the Netherlands, childcare as an employee benefit is typically offered in the form of direct financial support for childcare costs, on-site childcare facilities, or partnerships with local childcare providers. While not a standard benefit across all sectors, some employers may provide access to on-site childcare centres or negotiate discounts with external childcare providers. These arrangements are designed to help employees balance work and family responsibilities by making quality childcare more accessible and affordable. However, the most common form of childcare support for working parents is the government-provided national childcare allowance (kinderopvangtoeslag). Employer-provided childcare benefits are therefore supplementary.

Cost and Funding

Employer-provided childcare benefits are typically structured as partial contributions rather than full coverage, with employers often reimbursing a fixed amount or a percentage of childcare costs. All employers are also required to pay a collective childcare contribution of 0.5% of their total wage bill, which helps fund the kinderopvangtoeslag. This government allowance is income-dependent, paid directly to parents, and covers a percentage of childcare costs up to set hourly maximums.

Taxation

If structured under the work-related costs scheme (WKR), childcare contributions or reimbursements provided by the employer may be offered tax-free up to the free space threshold. Any benefits exceeding this amount remain tax-free for employees but trigger an 80% tax levy paid by the employer. The government’s childcare allowance is not taxed as income.

Implementation and Administration

When partnering with a provider, employers typically negotiate a contract that may secure reserved places, discounted rates, or tailored services for their employees’ children. The provider then handles day-to-day operations, regulatory compliance, and staff management, while the employer oversees enrolment and may subsidise part of the costs. On-site childcare facilities operate similarly, with most employers opting to have a specialist provider manage the day-to-day running of the centre. The biggest advantage for parents is the ease and convenience of having childcare located at their workplace.

Other Considerations

Employers should implement a clear process for determining which employees are eligible for childcare benefits and for managing any waitlists that may arise due to limited capacity. Transparent communication about costs, enrolment steps, and processes helps set expectations and supports employees. For on-site childcare, employers must also ensure that the facility fully complies with Dutch regulatory standards.

Finance

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13th Month Pay

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Key Features – How Does It Work?

In the Netherlands, many employers have adopted 13th month pay (dertiende maand) as a consequence of collective agreements. The amount is paid in December or, if the employee resigns, during final salary settlement.

Cost and Funding

The cost of 13th month pay is borne by the employer and should be budgeted for as a payroll expense. It is the equivalent of one month’s salary. Some employers may offer an end-of-year bonus instead, which is a discretionary payment usually based on a percentage of annual salary. This can be a cheaper alternative as the employer has more flexibility over the amount.

Taxation

While 13th month pay is subject to income tax and social contributions, it is considered a special payment (bijzondere beloning) and is subject to specific payroll tax rules. This special rate (bijzonder tarief) may be different from the income tax rate the employee is paying.

Implementation and Administration

Employers should clearly explain any 13th month pay arrangement in the employee contract or in company policy. Most employers disburse it in December as a single payment separately from the regular payroll, while others may spread the cost across the year with monthly instalments.

The pay should be issued equitably to all employees. This means that part-time employees and those that resign mid-year are also entitled on a pro-rata basis.

Other Considerations

Employers operating under a collective labour agreement should ensure compliance with any sector rules.

13th month pay is distinct from the mandatory holiday allowance (vakantiegeld) which all employers must pay to their employees around summertime.

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Financial Advice & Coaching

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Key Features – How Does It Work?

Financial advice and coaching are increasingly offered by Dutch employers as part of broader efforts to support employee wellbeing. This support is designed to help employees improve financial literacy and manage personal finances. Common offerings include access to certified budget coaches, financial education workshops, or referrals to support. Employers often work with external providers, and use resources from government-driven initiatives such as Nibud and Financieel fitte werknemers, to provide the benefit.

Cost and Funding

Employers typically cover the cost of financial advice and coaching. This might include paying for an external coaching service, arranging on-site training, or covering the costs of online financial tools.

Taxation

If structured under the work-related costs scheme (WKR), the employer-paid portion of the benefit may be offered tax-free up to the free space threshold. Any benefits exceeding this amount remain tax-free for employees but trigger an 80% tax levy paid by the employer. Otherwise, it is treated as a benefit in kind and subject to income tax and social contributions.

Implementation and Administration

Employers can partner with certified financial wellbeing providers or budget coaches to offer financial coaching. Services can be contracted on-demand or through a fixed monthly plan, with sessions delivered in person or online, and access promoted confidentially via HR.

Alongside private coaching, employers can also refer employees to municipal debt counselling services (schuldhulpverlening), which are free to access and available in every Dutch municipality. Employers can also use resources from Nibud and Financieel fitte werknemers to support employees facing financial difficulties. Municipal and government-supported services are free to access and are encouraged as part of a supportive workplace policy.

Other Considerations

Participation in financial coaching should always be voluntary, and employers must respect employee privacy. HR teams should be trained to recognise and respond to signs of employee financial stress.

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Personal Accident Cover

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Key Features – How Does It Work?

Personal accident insurance provides financial protection to employees in the event of accidental injury, permanent disability, or death. While traditionally focused on work-related incidents, many Dutch insurers now offer 24/7 coverage, extending protection to accidents occurring during personal time. Policies typically offer a lump-sum payment, adjusted for the severity of the injury.

Cost and Funding

In the Netherlands, these insurance policies are typically funded by the employer. The cost of premiums is based on factors such as the number of employees, the nature of their work, and the level of cover. This premium is determined on a yearly basis based on employee headcount.

Taxation

If the employer is the policyholder and employees do not have a direct right to claim, premiums are usually not considered taxable income for employees. Benefits paid out to employees following an accident are typically not taxed as income, but specific circumstances may vary depending on the policy terms and the nature of the payout.

Implementation and Administration

Employers should partner with an insurance provider that offers a personal accident policy that operates 24/7 and select a level of coverage. Once established, employees are typically enrolled automatically. Employees should be encouraged to appoint a beneficiary. In most cases, as the employer is the holder of the policy, they will make the claim and disburse any insured amount to the employee.

Other Considerations

For most accident policies, all employees are insured as standard, with optional coverage for other workers such as interns or contractors. Employers should ensure they comply with collective agreements that require accident insurance. It is common for this to be required for incidents that occur during work hours.

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Workplace Loans

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Key Features – How Does It Work?

Employer-provided loans (personeelsleningen) are occasionally offered in the Netherlands as part of a broader benefits package. These loans allow employees to borrow money on more favourable terms than commercial lenders. Employers may restrict loans to certain purposes, and tax advantages apply to loans for purchasing bicycles or electric scooters. Any such loans should be formalised through an internal agreement between the employer and employee.

Cost and Funding

The employer provides the loan directly and receives repayments from the employee, usually through payroll. Employers should consider the impact on cash flow before the loan is repaid. The financial cost to the employer is otherwise limited, unless the loan is interest-free or below market rate.

Taxation

If the interest rate on the loan is below market rate, the difference (rentevoordeel) is generally considered taxable income for the employee. Loans for a bicycle or electric scooter may qualify for nil valuation, making them tax-free even if the interest rate is below market. If a loan is forgiven, this is considered income and will be subject to tax.

Implementation and Administration

Employers should have a clear policy on loan eligibility and applications. Each loan should be formalised through a written agreement outlining the amount and repayment schedule. The employer provides the loan directly and collects repayments through payroll deductions. If the interest is below market rate, the employer must apply the appropriate income tax treatment.

Other Considerations

It is important to provide employees with clear and transparent information about how repayment works, including any potential impact on their regular pay. Loan agreements should also include a clear process for repayment if an employee leaves their job before the loan is fully repaid, which may involve deducting the outstanding balance from the employee’s final paycheck.

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Workplace Savings & Investment

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Key Features – How Does It Work?

The Netherlands previously offered popular government-supported workplace savings schemes, such as the spaarloonregeling and levensloopregeling. These allowed employees to set aside part of their salary in a tax-advantaged account for medium-term or long-term savings. However, both schemes have been discontinued.

In the absence of new tax-incentivised savings schemes, the private market is beginning to introduce new solutions. This includes employee investment schemes (werknemersbeleggen), where employers facilitate monthly payroll deductions into an investment account. This model allows employees to voluntarily build additional savings separate to their pension.

Cost and Funding

Any new scheme will operate on a voluntary, employee-funded basis. The employer may enhance the benefit by making additional contributions, such as paying in bonuses or other extra payments. Deductions are taken from the employee’s net salary and transferred directly to the investment provider. This makes the scheme low-cost and low-risk for employers, while giving employees an easy way to invest regularly.

Taxation

There are no specific tax advantages for private workplace schemes. Contributions are deducted from net salary, so income tax has already been applied. Any investment returns are taxed according to the Netherlands’ wealth tax system. There is no employer tax benefit, and the scheme must be clearly distinguished from pension or salary deferral programmes to avoid tax complications. If employers wish to offer a contribution or bonus, this would be treated as regular salary and taxed accordingly.

Implementation and Administration

Employers can implement employee investment schemes by partnering with an external provider and setting up a payroll integration. Employees sign up voluntarily and select their investment preferences within the provider’s platform. The employer’s role is limited to managing the monthly payroll deduction. Providers typically handle account management, reporting, and regulatory compliance.

Other Considerations

Workplace investment schemes are a relatively new offering in the Dutch market and are not yet widely adopted. Employers should clearly communicate how the scheme works, including the process for withdrawing savings.

There are also pension-style investment products available in the Netherlands, known as third-pillar schemes, which are designed for personal pensions. These allow employees to invest money with tax benefits, such as deducting contributions from their income and deferring tax until retirement. However, these products are designed for retirement savings, meaning the investment is locked away until the employee retires. In contrast, while workplace investment schemes like werknemersbeleggen do not offer tax advantages, the money is accessible at any time and the setup is much simpler for employers.

Health

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Dental Insurance

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Key Features – How Does It Work?

Dental insurance in the Netherlands is not included in the standard statutory health insurance for adults. Employees can instead access it through supplementary private health insurance. Many employers arrange collective health insurance agreements with providers, giving employees the option to take out additional coverage, including for dental care. This is typically employee-funded, with employers negotiating discounts on their behalf. Depending on the cover, it may include reimbursement for routine dental check-ups, treatments like fillings and root canals, and emergency dental care.

Cost and Funding

Employees typically pay the full cost of dental insurance themselves. While employers may negotiate discounts through collective agreements with insurers, they rarely fund the dental premiums themselves. These agreements reduce the overall monthly premium or offer access to more comprehensive plans at a lower cost. The employee chooses their preferred coverage level and pays the associated premium, usually deducted monthly via direct debit or occasionally through payroll.

Taxation

Because the employee pays for the dental insurance themselves, the premiums do not count as taxable income and are not subject to additional taxes. If an employer were to contribute financially, it can be structured under the work-related costs scheme (WKR), and may be offered tax-free up to the free space threshold. Any benefits exceeding this amount remain tax-free for employees but trigger an 80% tax levy paid by the employer.

Implementation and Administration

Employers that want to offer access to dental insurance should set up a collective agreement with a health insurer. They promote the scheme to employees, who then opt in and manage their individual policy directly with the insurer. HR teams may assist during onboarding or open enrolment periods but do not manage claims or benefits.

Other Considerations

Coverage levels can differ significantly between plans, so it is important that employees review the terms carefully before enrolling.

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Fitness Memberships

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Key Features – How Does It Work?

Employers in the Netherlands may offer access to fitness memberships through collective contracts or tax-advantaged schemes. These arrangements typically allow employees to access discounted gym memberships, either across multiple facilities via a subscription model or with a specific chain, or use gross salary exchange to cover costs. The benefit is optional and initiated by the employee.

Cost and Funding

Fitness memberships are generally paid by the employee. Employers may provide access to a group discount or facilitate a salary exchange arrangement. Employers may also choose to finance part of the cost as an additional employee benefit.

Taxation

If structured under the work-related costs scheme (WKR), fitness memberships may be offered tax-free up to the free space threshold. Any benefits exceeding this amount remain tax-free for employees but trigger an 80% tax levy paid by the employer. On-site fitness facilities may qualify for nil valuation, meaning they are not included in the WKR cap. Any employee contribution is paid from net salary.

Implementation and Administration

Employers arrange access to fitness memberships via collective agreements or by setting up a salary exchange scheme. Enrolment is voluntary, with employees opting in to participate. HR or payroll teams oversee the administration, including any documentation required for the WKR or salary sacrifice scheme. Once enrolled, the membership is usually managed directly by the employee.

Other Considerations

Employers should design fitness benefits that accommodate a wide range of employee preferences and needs. This might involve providing access to different types of physical activities, like yoga, pilates, or team-based sports, and taking into account the convenience and accessibility of fitness locations.

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Health Screening

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Key Features – How Does It Work?

In the Netherlands, employers are legally required to periodically offer a Preventief Medisch Onderzoek (PMO), or Preventive Medical Examination, to their employees. The aim is to assess overall health and identify any work-related or lifestyle risks. The exact content of the PMO is flexible and can include physical health checks, mental wellbeing assessments, and lifestyle questionnaires. Participation is voluntary, but offering it is a statutory obligation.

Cost and Funding

The employer is responsible for the full cost of the PMO. These costs cannot be passed on to employees. In some cases, the employer’s group health insurer may offer co-financing or discounts for preventive health services. There are cheaper online options for around €30 whereas more comprehensive exams are between €100 and €200 per employee.

Taxation

Because PMOs are considered a workplace health obligation under the Working Conditions Act, they qualify for nil valuation under the work-related costs scheme (WKR) and can be provided tax-free. This means they do not count towards the employer’s free space under the scheme.

Implementation and Administration

Employers typically contract with a certified occupational health provider to carry out the PMO. The content and delivery are tailored in collaboration with the provider, based on the nature of the work and health risks identified in the employer’s Risk Inventory and Evaluation. Employees are invited to participate, and the process includes informed consent and individual follow-up reports. Employers may also receive anonymised, aggregated results to help guide workplace health strategy.

Other Considerations

The law does not specify how frequently a PMO must be offered, with many employers choosing to offer it every two to three years. Employers should ensure that the PMO is properly documented and communicated as part of their health and safety programme.

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Mental Health Support

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Key Features – How Does It Work?

In the Netherlands, a growing number of employers are offering app-based mental health support to their workforce. These platforms provide employees with access to digital tools such as mindfulness exercises, chat-based therapy, and on-demand mental health content. Services are accessible via mobile or desktop, making them a low-barrier option for employees to seek support. Employers contract directly with the platform, typically offering access as part of a broader wellbeing initiative.

Cost and Funding

These services are paid for by the employer, generally through a per-employee licence fee or a flat monthly subscription based on headcount. Some providers offer tiered access, with higher-cost packages including live sessions or one-on-one coaching.

Taxation

If positioned as part of a broader occupational health strategy, access to mental health apps may qualify for nil valuation under the work-related costs scheme (WKR), provided the offering is demonstrably linked to working conditions or stress prevention. Employers should document the business purpose and health-related relevance of the benefit to ensure compliance.

Implementation and Administration

Employers partner with a mental health provider platform. The platforms are typically self-service, meaning HR is not involved in the content or usage, with employees accessing content directly once enrolled in the platform.

Other Considerations

Although not widely used in the Netherlands, these digital tools are gaining traction. They are particularly effective when combined with other initiatives, such as awareness campaigns, manager training, or in-person support options.

Employers considering these tools should ensure cultural suitability, as platforms may not offer Dutch-language content by default.

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Nutrition Support

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Key Features – How Does It Work?

In the Netherlands, nutrition support is not a standard employee benefit but is offered by some employers as part of wider vitality or health initiatives. These programmes typically involve on-site or locally provided services by registered dietitians or nutritionists. Support may include individual consultations, group workshops, lifestyle coaching, or assessments of workplace food offerings.

Cost and Funding

Employers generally fund these services as part of a broader investment in employee health. Pricing varies depending on the type, frequency, and provider of the service, but most offerings are billed as one-off sessions or short-term projects. Nutrition support is typically arranged via independent local professionals or small consultancies rather than through national contracts or platforms.

Taxation

If the services are delivered within the context of workplace health and linked to risk prevention or the employer’s occupational health policy, the cost may qualify for nil valuation under the work-related costs scheme (WKR). Otherwise, the cost must be allocated to the free space or taxed accordingly.

Implementation and Administration

Employers usually contract directly with a certified dietitian or nutritionist, who delivers the services on-site or at a local clinic. HR or occupational health teams coordinate the service, communicate availability to employees, and manage scheduling. There is typically no long-term platform or system to manage the benefit, making administration relatively light but less scalable.

Other Considerations

Nutrition support in the Netherlands is still a relatively niche benefit, with limited uptake outside health-driven organisations. There are few digital options on the market, and most services are designed for in-person engagement. Employers considering this benefit should ensure demand exists within the workforce and assess whether it fits within a broader wellbeing strategy.

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Optical Care

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Key Features – How Does It Work?

Optical care is provided under two main frameworks. First, employers are legally required to offer eye exams and, where necessary, reimburse screen-use glasses (beeldschermbril) for employees who use display screens for more than two hours per day. This obligation is part of workplace health and safety regulation. Second, some employers give access to collective health insurance agreements that include supplementary cover for routine optical care such as eye tests, glasses, and contact lenses. This is an optional benefit, usually facilitated but not funded by the employer.

Cost and Funding

If screen-use glasses are required for work, the employer must pay both the cost of the examination and the lenses. This does not extend to normal reading glasses or contact lenses.

When employers offer access to group health insurance, usually through a negotiated collective agreement, the employee pays the full cost of premium, including any optical cover that is part of their supplementary policy.

Taxation

Where screen-use glasses are provided in compliance with the Working Conditions Decree, they are not considered taxable income. Because the employee pays for any other optical insurance themselves, the premiums are not considered taxable income and are not subject to additional taxes. If an employer were to contribute financially, it can be structured under the work-related costs scheme (WKR), and may be offered tax-free up to the free space threshold. Any benefits exceeding this amount remain tax-free for employees but trigger an 80% tax levy paid by the employer.

Implementation and Administration

For screen-use glasses, employers typically refer employees to an approved optician or occupational health service. Employers should provide clear guidelines on eligibility, covered costs, and replacement cycles. For collective health insurance, the employer negotiates a group agreement with an insurer, and employees can opt in during annual enrolment. While the employer may facilitate the process, they are not usually involved in the details of claims or reimbursements.

Other Considerations

Screen-use optical care is a legal requirement and applies to all employers with desk-based staff. Employers should document their policy and ensure compliance with inspection standards. Collective optical coverage via health insurance is voluntary and depends on the terms of the specific insurance provider.

{{seasonal-vaccination}}

Seasonal Vaccinations

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Key Features – How Does It Work?

Many employers offer seasonal vaccinations, most commonly the flu vaccine, as part of their workplace wellbeing strategy. These are typically arranged on-site through an occupational health provider, making access straightforward and convenient for employees. This benefit is especially relevant in sectors where employees are in close contact with others, such as healthcare, education, and childcare.

Cost and Funding

Seasonal vaccinations are fully funded by the employer. Services are usually provided by an external medical partner, with costs based on headcount or volume. In some cases, employers may also reimburse employees who choose to get vaccinated elsewhere.

Taxation

Seasonal vaccinations may qualify for a nil valuation under the work-related costs scheme (WKR) if they are provided as part of the employer’s legal obligation under the Working Conditions Act. To meet the exemption conditions, the vaccination must be necessary due to specific work-related risks, such as regular contact with vulnerable groups or poor ventilation. The exemption does not apply to general flu vaccinations offered to all employees without a clear link to workplace health risk. In that case, it can be offered tax-free up to the free space threshold of the WKR. Any benefits exceeding this amount remain tax-free for employees but trigger an 80% tax levy paid by the employer.

Implementation and Administration

Employers partner with an occupational health service or other medical provider. The vaccinations are normally completed on-site at a workplace, with the employer responsible for providing the space and organising appointments, and the provider for managing logistics. Vaccinations are usually scheduled to coincide with flu season, with providers offering their services in September and October.

Other Considerations

Participation in any vaccination programme should always be voluntary, and employees need to provide appropriate consent before taking part. The aim is to make access as easy as possible, so the registration process should be simple and clear. Employers should share information about the vaccine, including any possible side effects, and make sure the whole process respects employee privacy and follows health data rules.

Lifestyle

{{Annual-leave-purchase-scheme}}

Annual Leave Purchase Scheme

{{table="/snippet/annual-leave-purchase-scheme-nl"}}

Key Features – How Does It Work?

Employers may offer employees the option to purchase leave beyond their standard entitlement. This typically operates through the Individueel Keuzebudget (IKB) system. This allows employees to have a portion of their income, otherwise constituting the holiday allowance and year-end bonus, reallocated as additional leave. These days can be banked, though the maximum that can be saved varies with some sectors having no expiry and others limiting banking to five years. Employers may also offer buying and selling leave as a standalone benefits policy, but this is less common.

Cost and Funding

The cost of additional leave is covered by the employee. In IKB-based arrangements, the employee uses an existing budget to fund the leave purchase, with no additional expense required. In standalone schemes, the cost is calculated as a portion of gross salary for what the employee would earn for working the equivalent days.

Taxation

Where leave is purchased using gross salary, whether through salary exchange or from a flexible IKB budget, the transaction typically leads to a reduction in taxable income. This means the employee pays less income tax and social contributions, making the benefit tax-efficient. The total swapped hours should remain within 10% of the agreed working hours to ensure there is no impact on pension accrual rules.

Implementation and Administration

Employers offering this benefit should have a clear policy outlining the conditions for purchasing leave, including timing, limits, approval procedures and leave tracking. Employees usually make their choices via an online platform during predefined selection windows. The purchased leave is added to the employee’s non-statutory leave balance and can be taken using the same process as annual leave.

Employees may not sell days if it would bring them below the statutory minimum of annual leave. Similarly, if they are purchasing extra leave, the employee’s adjusted salary may not fall below the minimum wage.

Other Considerations

The level of flexibility depends largely on the applicable collective labour agreement. In the public sector, for example, the scheme allows employees to save up leave for early retirement. It is important for employers to clearly communicate how the scheme may affect benefits, pension accrual, and tax, as well as to outline any key deadlines for making choices. There should also be a clear process in place for handling unused entitlements when an employee leaves the organisation.

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Car Leasing

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Key Features – How Does It Work?

Many Dutch employers offer a company car through a lease arrangement. Typically, the employer enters into a lease agreement for the vehicle, with the employee then able to use it for both business and private purposes. The cost of the lease covers associated costs such as car maintenance, insurance, and roadside assistance.

Cost and Funding

The lease cost is typically covered by the employer as part of an employment contract. Employees may have the option to make a personal contribution, either to upgrade to a more expensive model or reduce the taxable benefit.

Taxation

The use of a company car for private purposes is considered a benefit in kind and may be subject to an additional tax (bijtelling). If an employee drives fewer than 500km per year, they are exempt from this tax. Commuting from home to a place of work is considered business use, as are lunch trips home during the day. Employees are responsible for tracking mileage to demonstrate that private use remained under 500km.

If the private distance travelled exceeds 500km, the additional tax is calculated as a percentage of the list price of the vehicle. This amount is 22% for petrol or diesel vehicles. For 2025, the rate is 17% for low emission vehicles up to €30,000, then 22%. This rate is changing to 22% for all vehicles in 2026, removing the tax benefit for EV cars.

If employees make a contribution to the cost of the monthly lease, this reduces the additional tax. Employee contributions are deducted from net pay.

Implementation and Administration

Employers should contract with a leasing company to arrange vehicles. Employers then set out eligibility, budget, and contribution rules as part of a lease car policy. These rules are normally aligned with job grade or role. Employees can then select their preferred vehicle. The car is leased in the employer’s name. Maintenance and roadside assistance are included in most packages, with many employers providing employees with a fuel or charge card.

Other Considerations

While providing a car to employees is a popular employee benefit, employers are starting to shift towards mobility budgets or public transport allowances as alternatives to company cars, in line with sustainability goals. This trend may be accelerated by changes in tax treatments for low emission vehicles. Employers should have a clear policy for when employees go on long-term leave as well as when they leave the company.

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Commuter Scheme

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Key Features – How Does It Work?

Employers in the Netherlands can support commuting costs through a tax-efficient scheme that covers travel between home and the employee’s regular workplace. There are two main options: a fixed kilometre-based reimbursement or full coverage of public transport costs. The most streamlined approach is for the employer to directly provide an OV-chipkaart or subscription (such as an NS-Business Card), with travel costs billed monthly to the company. Alternatively, employees can submit receipts and be reimbursed for actual transport expenses.

Cost and Funding

Employers fully fund the scheme, choosing whether to pay a per-kilometre allowance or to cover the actual cost of public transport. The kilometre allowance applies to any travel mode and is calculated based on the one-way distance between home and work. When covering public transport costs, employers either pay directly for the subscription or reimburse declared ticket costs.

Taxation

Under Dutch tax law, commuting reimbursements qualify for nil valuation under the work-related costs scheme (WKR), meaning they are excluded from taxable income for the employee. The €0.23/km allowance is fully tax-free and anything above this threshold is treated as gross salary. For public transport, reimbursement of actual expenses are also tax-free if employees provide receipts or travel records. The employer-provided subscription model is the most tax-efficient, as the benefit is never processed through the employee’s salary.

Implementation and Administration

Employers can choose their preferred commuting policy. For kilometre-based allowances, employees typically declare their home-work distance, which can be verified using mapping software, and the reimbursement is paid monthly via payroll. For public transport, employers may issue transport passes directly by partnering with NS, with an invoice sent to the employer each month. Otherwise, they can manage a claims process for employees to upload ticket receipts or subscription invoices. Employers should keep records of these expenses to comply with tax authority requirements.

Other Considerations

The most advantageous setup for both employer and employee is for the employer to provide transport directly. It avoids out-of-pocket costs for employees, simplifies tax reporting, and guarantees compliance with fiscal exemptions. Employers should be clear in their communication about eligibility, travel modes, and whether working from home days affect reimbursement levels.

{{cycle-scheme}}

Cycle Scheme

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Key Features – How Does It Work?

The Netherlands has a reputation as a cycling-friendly country and this is reflected in its employee benefits with Dutch employers having several tax-efficient options for supporting bike commuting. The first is a company bicycle (fiets van de zaak), where the employer either purchases or leases the bike and makes it available to the employee for full-time use. Second, employers may partner with bike subscription or leasing services, where the employee registers for a monthly bike plan paid by the employer or through gross salary exchange. Lastly, some employers offer an interest-free loan to help employees buy a bike themselves, with repayments made through gross salary deductions.

Cost and Funding

In the fiets van de zaak model, the employer pays for the bicycle upfront or via lease, and covers running costs like maintenance, insurance, and repairs. In a leasing model, the employer can either fully fund the lease or deduct the monthly cost from the employee’s gross salary. For interest-free loans, employers provide a loan that the employee repays over time, usually via payroll. Employers may also claim these costs under the work-related costs scheme (WKR) if they stay within their tax-free allowance.

Taxation

The tax treatment also varies by model, though all are designed to be tax-advantaged. For fiets van de zaak, employees are required to pay an additional tax, calculated as 7% of the suggested retail price of the bike, per year. Leasing models are structured so that payments are taken from gross salary, providing tax savings based on their marginal rate. Interest-free loan repayments are tax-free if the bike is used for commuting.

Implementation and Administration

Employers should choose a model (or models) that suits their budget, tax framework, and employee needs. For fiets van de zaak or an employee leasing model, this will likely involve partnering with a local provider. The relationship is then between the employer and the provider, with employers managing payments. In all cases, employers can process employee payments via payroll. Providers often offer digital platforms for setup, which can manage subscriptions and maintenance. In all cases, the scheme must be documented and administered in a way that satisfies Dutch tax authority requirements.

Other Considerations

Employers should note that employees using any of these tax-advantaged models are not eligible for the €0.23/km tax-free commuting allowance for trips made with the bicycle. Employers should provide guidance on private use, theft cover, maintenance, and the option to purchase the bike at the end of a lease if applicable. Most arrangements will include a plan for when an employee leaves the company.

{{employee-assistance}}

Employee Assistance Programme

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Key Features – How Does It Work?

An Employee Assistance Programme (EAP) is a confidential support service provided by employers to help staff deal with personal or work-related issues. These programmes commonly offer support through counselling, financial or legal advice, and self-help tools through a third-party provider. This typically includes 24/7 availability through an app or phone line, as well as access to more advanced resources such as counselling sessions.

Cost and Funding

EAPs are funded by the employer and typically priced per employee per month or year, with costs depending on the size of the organisation and the scope of the services provided.

Taxation

EAPs are generally provided as a workplace benefit and fall under employer expenses, with no tax burden for the employee. Any additional services outside the scope of a standard EAP offering, particularly individualised offerings, may be subject to taxation.

Implementation and Administration

Employers should partner with an EAP provider. Once set up, the service should be available to all employees through secure login portals or by telephone. Employees can reach out directly to the provider when they require support, ensuring privacy from the employer.

Other Considerations

Employers should ensure that all employees, regardless of location, role or seniority, can access EAP services equally. For a comprehensive approach to wellbeing, EAPs should be complemented by initiatives such as proactive manager training, early intervention strategies and workplace cultures that encourage open conversations about mental health.

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Language Training

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Key Features – How Does It Work?

Employers in the Netherlands can offer or sponsor language training for employees, either as part of onboarding, skills development, or workplace integration. Dutch lessons are especially common, with many companies offering in-house or online courses aimed at helping international staff function more confidently at work and in society. English or other foreign language courses are also available, but usually targeted at specific roles such as client-facing staff, international teams, or leadership. Training can be delivered in group sessions, one-on-one coaching, or self-paced formats, with many providers offering custom content based on workplace communication needs.

Cost and Funding

Language courses are typically funded by the employer and are delivered in partnership with external providers. The cost depends on the structure, with app-based solutions being the most affordable, and in-company group courses costing more, and individualised support being the most expensive model.

Taxation

Language training is generally tax-free if it is considered relevant to the employee's role or needed for professional functioning. Dutch language courses for non-native speakers typically qualify for nil valuation when necessary for workplace integration or safety, meaning they do not count against the work-related costs scheme (WKR) free space. English or other foreign language courses may also qualify for this exemption when directly linked to job requirements or international communication needs. Language training that is not strictly necessary for the role but still work-related can be offered tax-free through the WKR free space. Any recreational or hobby-based language learning would need to be included in the WKR free space to be tax-free, or else be treated as taxable income. Benefits exceeding the WKR threshold remain tax-free for employees but trigger an 80% tax levy paid by the employer.

Implementation and Administration

Employers should choose a provider that fits their needs. Dutch courses are often delivered as part of a wider onboarding or integration programme, with set start dates and clearly structured courses. For English or other languages, training is more likely to be ad hoc or tied to personal development plans. Providers can offer both in-person and digital formats, with progress tracked via attendance and testing. If offering in-person classes, these should be scheduled during work hours where possible.

Other Considerations

Employers in the Netherlands tend to place more emphasis on local language training for international employees than employers in other countries. Given the country’s high English proficiency levels, English skills are often considered standard among Dutch professionals. This creates a unique dynamic where English training is typically reserved for specific roles requiring advanced business English, while Dutch language training becomes the primary focus for integrating international staff.

When implementing language training programs, it is important to match offerings to actual workplace needs. Employers should ensure that training programs are accessible to all employees, including those working remotely or on flexible schedules.

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Long Service Award

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Key Features – How Does It Work?

In the Netherlands, a long-service award, known as a jubileumuitkering, is a one-time cash bonus granted to employees reaching milestone service anniversaries, typically 12.5, 25, 40 or 50 years with the same employer. The availability of this award is governed by collective agreements or employment policies. To qualify for tax-exempt treatment, the award must be a single payment, based on completed service, and awarded after the milestone has been reached.

Cost and Funding

The employer fully funds the award. It is often the equivalent of one month’s gross salary to comply with tax rules.

Taxation

A long-service award of up to one month’s gross salary is exempt from income tax and social security contributions if it meets the criteria. This applies specifically to 25-year and 40-year anniversaries. Awards for anniversaries other than this are normally treated as income.

Implementation and Administration

Employers should have a clear process to document eligibility, milestone thresholds, and payment timing. To qualify for the tax exemption, the award must be issued after the date on which the employee reaches 25 or 40 years of service.

Other Considerations

The Dutch government is reviewing the tax-exempt nature of this benefit, and it may be revised or abolished in the near future. Employers and employee representatives should monitor these developments and adjust reward practices accordingly.

{{national-holiday}}

National Holiday Trading

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Key Features – How Does It Work?

Some Dutch employers allow employees to swap specific public holidays for alternative days off to accommodate religious or cultural preferences. The policy typically applies to Christian-based holidays such as Easter Monday, Ascension Day or Pentecost Monday, which are public holidays by default in the Netherlands. Employees can request to take a different day off instead, for example to observe a more relevant religious or national holiday. The alternative day is taken as paid leave and the original public holiday becomes a normal working day.

Cost and Funding

There is no additional cost to the employer, as the employee is simply exchanging one paid day off for another. The swapped day is treated as standard paid leave and does not increase total leave entitlement. In practice, it may require some scheduling flexibility, especially in operational roles where coverage is needed.

Taxation

There are no specific tax implications for either the employer or the employee when public holiday swapping is offered.

Implementation and Administration

Employers offering this option typically include it in their HR policy or collective labour agreement. Employees must request the swap in advance, usually through a form or digital system, and indicate the holiday they would like to work. Managers and HR review the request to ensure coverage and approve it based on business needs. It is common to place limits on which public holidays can be swapped and to require the alternate day to be taken within the same calendar year.

Other Considerations

Holiday swapping supports cultural and religious inclusivity and can help international or multi-faith teams feel more recognised. Good communication and clear internal procedures are essential to avoid confusion, especially in teams where some employees are working on national holidays and others are not.

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Recognition Programme

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Key Features – How Does It Work?

Recognition programmes aim to reward employees for strong performance with one-off bonuses, gift cards, or tangible awards. In practice, non-cash rewards and vouchers are often routed through the work-related costs scheme (WKR) so they can be provided tax-free. Dutch employers typically manage this directly through payroll, offering cash bonuses or simple gift cards, though there is a growing shift towards third-party platforms.

Cost and Funding

Recognition is employer-funded. Employers can determine their own budgets suitable for their company and culture. If using a third-party platform, these tend to operate on a subscription basis, with a per employee per month fee.

Taxation

Employees can receive rewards tax-free if structured under the WKR, up to the free space threshold. Each employee can receive rewards up to €2,400 per year which is considered a customary amount under Dutch tax rules. Any benefits exceeding the free space threshold remain tax-free for employees but trigger an 80% tax levy paid by the employer. Rewards offered as bonuses separate from the WKR will be subject to regular income tax and social insurance contributions.

Implementation and Administration

Employers should set clear rules on eligible behaviours and approval thresholds to receive awards. Partnering with a provider outsources the day-to-day administration, including managing the platform and transferring rewards. To utilise the tax-free scheme, employers should ensure that the amounts are declared properly. Similarly, they should have steps for tracking the value of rewards to ensure it does not exceed the €2,400 per employee threshold.

Other Considerations

Rewards should be distinguished from small gifts (kleinegeschenkenregeling). A small gift has its own tax exemption, if it satisfies three criteria: it is an occasion where others would also give a gift (such as a birthday); it is not cash or a voucher; and it is under €25.

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Retail Discounts

{{table="/snippet/retail-discounts-nl"}}

Key Features – How Does It Work?

Some employers offer staff access to exclusive discounts on goods and services from external brands through dedicated platforms or apps. These platform providers partner with a wide range of retailers and negotiate offers which are available only to registered employees. Access is typically via a secure portal or app. Employees can browse offers and redeem them online or in-store with a unique code or link.

Cost and Funding

Employers usually pay a subscription or licensing fee to the platform provider, either per employee or at a flat annual rate, in exchange for offering their workforce access to the discounts. These are increasingly included as part of employee benefits platforms. The discounts themselves are negotiated by the platform with participating retailers, meaning the employer does not bear the cost of the reduced price. Employees simply pay the reduced rate directly to the retailer, so there is no payroll or reimbursement process involved.

Taxation

If employees are purchasing the goods or services directly from third parties at a reduced price, discounts generally have no tax implications for the employer or the employee. They are treated as commercial offers rather than remuneration. As there is no payment from the employer and no taxable benefit provided in kind, the discount falls outside payroll considerations.

Implementation and Administration

Employers choose a platform provider and arrange access for all eligible staff. Once set up, employees receive instructions on how to log in and redeem discounts. The platform manages retailer relationships, updates offers, and can provide usage reports to the employer.

Other Considerations

Retail discount programmes are a low-cost, low-administration way for employers to add perceived value to the overall benefits package. They work well for diverse workforces because they cover a broad range of product categories and allow personal choice. The variety and quality of offers depend on the provider’s retail network, so employers should evaluate platform partners carefully. Because these discounts are optional and self-directed, uptake can vary. Regular internal promotion helps keep them visible and relevant to employees.

Leave & Remote Working

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Additional Leave

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Additional leave in the Netherlands refers to paid or unpaid time off granted for reasons beyond the scope of special leave (bijzonder verlof), which is generally tied to specific personal events. Unlike special leave, which is often linked to one-off life occasions such as weddings or funerals, additional leave can be used for a broader range of purposes, often at the discretion of the employer. Common examples include company closure days, mental health days, volunteer leave, or birthday leave. These days are not required by law and are instead set out in employment contracts or workplace policies, meaning the entitlement, duration, and whether they are paid or unpaid will vary between employers.

Annual Leave

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Annual leave is paid time off work that all employees are entitled to, designed for personal activities.

The Netherlands has statutory paid annual leave on an accrual basis. Each year, employees are entitled to four times the number of hours they work in a week. For an employee working full-time, this is the equivalent of 20 days. These are referred to as statutory days and expire six months after the calendar year in which they were accrued. Although leave is accrued gradually, many employers allow staff to take it earlier in the year before it is fully earned, subject to agreement. Extra-statutory (bovenwettelijke) holiday days are also common, with many employers granting around five additional days on top of the statutory 20, bringing the total to about 25 days per year.

The Netherlands also has 10 public holidays. Public holidays are not automatically paid days off by law. Whether employees receive a day off, and whether they are paid, is set in the sectoral collective agreement or in the employment contract. In practice, most employers offer all 10 days.

Carer's Leave

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Carer’s leave is paid or unpaid time off to provide personal care or support to a dependant.

Carer’s leave (zorgverlof) in the Netherlands allows employees to take time off work to care for a sick child, partner, close relative, or other member of the household. There are two forms: short-term and long-term. Short-term carer’s leave is available for up to twice the number of hours worked in a normal week each year, for example, 80 hours for someone working 40 hours a week. During this period, the employer must pay at least 70% of the employee’s salary, with a minimum of the statutory minimum wage. Long-term carer’s leave is available for up to six times the number of weekly working hours per year, but it is generally unpaid unless a collective agreement or employment contract offers otherwise. Both types of leave must be requested from the employer in advance where possible, and the employer can only refuse on serious business grounds.

Compassionate & Bereavement Leave

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Compassionate and bereavement leave is time off work for personal loss or other family emergencies.

Compassionate and bereavement leave in the Netherlands is not provided for in a single statutory scheme but is usually a combination of different entitlements. The immediate period after the death of a loved one, such as the day of death or urgent arrangements, falls under emergency leave (calamiteitenverlof), a statutory right to fully paid time off for urgent, unforeseen events requiring the employee’s immediate attention. Beyond this urgent phase, additional days to attend a funeral or manage other arrangements are often granted as special leave (bijzonder verlof) through a collective agreement or individual employment contract. The length and payment terms for this additional time vary by employer or sector, with many offering several days of fully paid leave for the death of an immediate family member and fewer, or unpaid, days for more distant relations.

Flexible Working

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Flexible working means finding a way of working that suits an employee’s needs. This may include having flexible start and finish times, or working from home. Some examples of flexible working include job sharing, remote working, hybrid working, part-time hours, compressed hours, flexitime, or staggered hours.

In the Netherlands, employees can request changes to their working hours, schedule, or place of work under the Flexible Working Act, provided they have been with their employer for at least six months and the organisation has ten or more employees. Requests must be submitted in writing, and the employer must respond in writing within one month (or three months for smaller employers). Employers can only refuse for valid business reasons, and special provisions apply for employees with caregiving responsibilities for young children or dependants.

Force Majeure Leave

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Force majeure leave is time off from work due to urgent and unexpected family matters that require an employee’s immediate attendance. This differs from other types of leave which tend to be pre-planned and pre-approved.

Force majeure leave in the Netherlands, known as calamiteitenverlof or short-term emergency leave, is a statutory entitlement that allows employees to take immediate time off for urgent, unforeseen situations that require their personal attention during working hours. There is no fixed maximum duration; the leave lasts as long as necessary to deal with the immediate issue, which in practice is usually a few hours to a day or two. It is also not a one-time entitlement and can be taken for multiple separate emergencies, provided each meets the legal criteria, although repeated or prolonged absences will often lead the employer to assess whether another type of leave, such as carer’s leave, would be more appropriate. Employers must continue paying the employee’s full salary during this time, and employees must inform their employer as soon as possible about both the situation and the expected length of absence.

Long Service Leave

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Long service leave refers to extended paid or unpaid leave that is offered as a benefit for long-term employees. It may also be referred to as tenure leave or a sabbatical.

The Netherlands does not have a statutory entitlement to long service leave, but in some sectors and collective agreements employees can achieve a similar benefit through the Individueel Keuzebudget (IKB). Under this system, employees can choose to “bank” unused holiday hours or allocate part of their IKB to be saved over time, allowing them to take an extended period off in the future. This offers a comparable level of flexibility for those who want to plan a longer break from work. Whether this option is available, along with the rules for building it up and using it, is dependent on the employer’s policy or the terms of the applicable agreement.

Maternity Leave

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Maternity leave is paid or unpaid time off for mothers before and after childbirth or adoption.

In the Netherlands, maternity leave starts with pregnancy leave (zwangerschapsverlof) of around 4–6 weeks before the expected birth date, followed by at least 10 weeks of paid post‑birth leave (bevallingsverlof), making a total of at least 16 weeks that must be taken as a continuous block. Any unused pregnancy leave is added to the post-birth period, giving flexibility for the total leave length. This leave is funded by the government, with payments transmitted via employer payroll.

Parental Leave

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Parental leave is a statutory leave entitlement that is available to all new parents in addition to traditional maternity and partner leave policies.

Both parents are entitled to 26 times their weekly working hours of parental leave (ouderschapsverlof) in the first eight years of the child’s life. Up to nine weeks, if taken in the first year, are paid at 70% of salary by the government. The remaining weeks are unpaid. Parental leave can be taken flexibly, and may be paused or stopped if the same person is taking maternity or partner leave.

Partner Leave

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Partners of the person who gave birth are entitled to one week of fully paid birth leave (geboorteverlof) to be taken within four weeks of the birth, funded by the employer. They are also entitled to five additional weeks (aanvullend geboorteverlof) within the first six months, paid at 70% of salary by the government. This entitlement applies regardless of gender and is based on legal parenthood or partnership with the birth mother.

Remote Working

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Remote working policies provide employees with the flexibility to work from locations outside of the office, typically from their own homes. While these arrangements can fall within the definition of flexible working requests, many employers have begun to offer remote working as a standard practice.

In the Netherlands, remote work is covered by the Flexible Working Act, meaning employees can formally request to work from home after six months of service if their employer has at least ten employees. Although there is no absolute right to remote work, employers must seriously consider such requests and can only refuse for sound operational reasons. Employers are also responsible for ensuring that home workstations meet health and safety requirements, including carrying out a risk inventory and providing ergonomic equipment where needed.

Remote working is extremely common in the Netherlands, with over 5 million workers (over 50% of the workforce) sometimes or usually working from home. This is the highest rate among EU countries.

Sick Leave

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Sick leave is time off for employees to recover from illness.

Sick leave can last for up to two years, during which employees are legally entitled to continued salary payments. Many employers in the Netherlands distinguish between short-term and long-term illness in their policies. Short-term absence, which is often less than a week, is usually handled through straightforward reporting and payment, while long-term absence, generally lasting more than four weeks, triggers a structured reintegration process. There is no set limit on the number of sick days within the two-year period, with the focus instead on recovery and return to work.

Special Leave

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Special leave is leave for special occasions. This varies between countries based on social and cultural norms.

Special or extraordinary leave (bijzonder verlof or buitengewoon verlof) in the Netherlands is not set by statute but is often included in collective labour agreements, employment contracts, or workplace policies. It covers situations that do not fall under other specific types of leave but are recognised as important personal events, such as a wedding, moving house, sitting an exam, or attending a family celebration. The length of time granted and whether it is paid or unpaid depend entirely on the terms of the agreement or contract, with many employers offering full pay for certain occasions and unpaid time off for others.

Spending Allowances

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Connectivity Allowance

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A connectivity allowance is a benefit that supports employees with the cost of internet access and mobile services, particularly for remote or hybrid work. It typically covers home broadband, mobile data, or phone plans.

In the Netherlands, the cost of internet access and mobile services can be reimbursed or provided tax-free if the employer regularly works from home and requires an internet connection. If the employee has a bundled package (e.g., internet, TV and phone), only the internet portion is eligible. Employers may also reimburse mobile phone subscriptions tax-free when the device and service are required for work. To remain compliant, employers should document the necessity of the service and, in the case of bundles, specify the internet share of the total cost.

Green Allowance

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A green allowance (groene arbeidsvoorwaarden) is a budget for employees to spend on environmentally sustainable practices, such as buying a bicycle, switching to greener commuting options, or choosing energy-efficient home office equipment. These green benefits are becoming increasingly popular in the Netherlands, with employers setting aside a dedicated budget for such spending. Certain purchases can be provided tax-free if they fall under an existing tax exemption, while other green expenses may be reimbursed from the WKR’s free space, also resulting in a tax saving for the employee. Employers should clearly define which purchases qualify, explain the tax treatment to employees, and keep receipts or proof of purchase for compliance.

Holiday Allowance

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In the Netherlands, employees are legally entitled to receive a holiday allowance (vakantiegeld) amounting to at least 8% of their gross annual salary, calculated over the previous year’s earnings. It includes overtime and certain bonuses but excludes end-of-year bonuses and profit-sharing payouts. Employers typically pay it out in May or June, although this can be adjusted by agreement or in a collective agreement, provided it meets the minimum 8% legal requirement. The allowance is taxed as a special bonus at a separate rate, often higher than regular income tax. Employers must include it in the final settlement if the contract ends before the usual payout.

In some organisations, the holiday allowance is included in an Individueel Keuzebudget (IKB) rather than paid out. In this system, the 8% is combined with other benefits, such as extra leave hours or a year-end bonus, into a single budget that accrues monthly. Employees can then choose when and how to take this amount; for example, as cash, to buy extra holiday days, or for other agreed purposes.

This is distinct from 13th month pay (dertiende maand), which is a voluntary amount paid at the end of the year.

Learning & Development Allowance

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A learning & development (L&D) allowance is a dedicated budget that enables employees to invest in their professional growth and skills development, whether through training courses, workshops, coaching programmes, or formal education. In the Netherlands, many of these expenses can be provided or reimbursed tax-free, as long as the learning activity is directly connected to the employee’s current job or a future role within the organisation. When the learning activity is unrelated to work, it generally cannot be reimbursed tax-free, unless the employer chooses to fund it from the WKR’s free space. To ensure compliance, employers should define clear rules on what qualifies, require proof of enrolment or completion, and link the learning objectives to the organisation’s business needs.

Work from Home Allowance

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A work from home allowance is a budget which allows employees to buy equipment for their working from home set up. This tends to be offered by employers that operate a hybrid working policy. Employees can use this allowance for items such as desk, chairs, and display equipment.

A work from home allowance in the Netherlands can cover both one-off purchases for home-office equipment and a daily tax-free payment for the general costs of working from home. Essential equipment such as desks, chairs, monitors and laptops can be provided or reimbursed tax-free if they are necessary for the job or qualify under health and safety rules. In addition, employers may pay a daily home work allowance (thuiswerkvergoeding) €2.40 per home-working day to cover incidental costs. This daily amount falls under a tax exemption, provided it is only paid for days actually worked from home. Non-essential items or costs outside these exemptions can still be covered from the free space, but may be taxed if that space is exceeded. Clear records should be kept linking equipment to job necessity and tracking home-working days for allowance payments.

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