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EMPLOYER COST / 2026 / NETHERLANDS

Netherlands employer cost calculator 2026

Work out what an employee costs an employer in the Netherlands in 2026: gross salary and holiday allowance plus the employer's Zvw and employee insurance premiums, line by line.

By the CalcBloc teamLast verified

Your details

01Salary

Excluding holiday allowance.

Turn off if the salary already includes it.

02Employer

Contract

Flexible contracts pay the high unemployment premium (AWf).

Employer size

Sets the disability premium (Aof). Small employers have a total wage bill under the Belastingdienst limit.

Your own rate from the Belastingdienst premium decision.

Total cost to the employer

€75,356

16.3% on top of €64,800 gross pay including holiday allowance · €6,280 a month

Employer contributions
€10,556
Cost per month
€6,280
Cost ÷ gross pay
1.16
Employee's net pay per year
€46,471
  • Employer premiums for 2026 are charged on wages up to €79,409 a year. Rates from the Belastingdienst 2026 rates annex.
  • The return-to-work premium (Whk) differs per employer and is on your annual premium decision (beschikking); enter it to include it. Employer pension contributions, the 30% ruling, sector funds and benefits are not included.

Total cost to the employer: €75,356 16.3% on top of €64,800 gross pay including holiday allowance · €6,280 a month

Employer contributions (per year)
Show the breakdownAmount
Gross salary€60,000
Holiday allowance (8%)€4,800
Health insurance (Zvw), 6.10%€3,953
Unemployment (AWf, permanent contract), 2.74%€1,776
Disability (Aof, small employer), 6.27%€4,063
Childcare (Wko), 0.50%€324
Implementation fund (Ufo), 0.68%€441
Employer contributions€10,556
Total cost to the employer€75,356
The employee takes home (after wage tax)€46,471
Where the employer's money goes
62%TAKE-HOME
  • Employee's net pay€46,47162%
  • Wage tax and national insurance€18,32924%
  • Employer contributions€10,55614%

€75,356

16.3% on top of €64,800 gross pay including holiday allowance · €6,280 a month

How it's calculated

A Dutch employer pays the gross salary and the 8% holiday allowance (vakantiegeld), plus its own premiums on the same wages: the employer's health insurance contribution (Zvw) and the employee insurance premiums for unemployment (AWf), disability (Aof), childcare (Wko) and the implementation fund (Ufo). All are charged on wages up to €79,409 a year in 2026.Belastingdienst

The formula

Employer contributions = min(wages, €79,409) × (6.10% Zvw + 2.74% AWf (7.74% flexible) + 6.27% Aof (7.63% medium or large employer) + 0.50% Wko + 0.68% Ufo + your Whk rate)

Total cost = gross salary + holiday allowance + employer contributions

Worked example

A small employer hiring on a permanent contract at €60,000 plus holiday allowance pays €75,356 a year, of which €10,556 is employer premiums before the return-to-work premium. The employee takes home €46,471 after wage tax.

€60,000 + holiday allowance, permanent, small employerEMPLOYER COST / NETHERLANDS / 2026
LineAmount
Gross salary€60,000
Holiday allowance (8%)€4,800
Health insurance (Zvw), 6.10%€3,953
Unemployment (AWf, permanent contract), 2.74%€1,776
Disability (Aof, small employer), 6.27%€4,063
Childcare (Wko), 0.50%€324
Implementation fund (Ufo), 0.68%€441
Employer contributions€10,556
Total cost to the employer€75,356
The employee takes home (after wage tax)€46,471

On a flexible contract the same salary costs €78,596.

Assumptions and limitations

  • Whk (return-to-work fund) differs per employer; enter the rate from your premium decision. It is 0 by default.
  • Not included: pension contributions, the 30% ruling, sector-specific funds, thirteenth month, travel allowances and sickness insurance.
  • Employee side: net pay assumes one employer applying the tax credits, no pension contribution and no 30% ruling. Use the net salary calculator for those.
FAQ

Questions people ask

How much does an employee cost an employer in the Netherlands?

On top of gross pay and the 8% holiday allowance, Dutch employers pay health insurance (Zvw, 6.10%) and employee insurance premiums: unemployment, disability, childcare and the implementation fund. For a small employer with a permanent contract that comes to about 16.3% of wages up to €79,409 in 2026, before the return-to-work premium and pension.

What is the difference between the low and high AWf premium?

The unemployment premium (AWf) is 2.74% for written permanent contracts with fixed hours and 7.74% for flexible and fixed-term contracts in 2026. The difference is meant to make permanent contracts cheaper to offer. Choose the contract type here to see how much the premium changes the total cost of the same salary.

Which disability premium (Aof) applies to my business?

Small employers pay the low Aof rate of 6.27% in 2026 and medium or large employers pay 7.63%. Whether you count as small depends on your total wage bill, measured against a limit the Belastingdienst publishes each year. Your premium decision (beschikking) from the Belastingdienst tells you which rate applies.

Is there a cap on Dutch employer premiums?

Yes. Employer health insurance and employee insurance premiums are charged on wages up to a maximum, €79,409 a year in 2026. Above that, an employee's extra pay costs only the salary itself, so employer contributions as a share of pay fall for high earners. Wage tax has no such cap but is paid by the employee.

What else should an employer budget for?

Most employers also pay into a pension scheme, often a sector fund set by the collective agreement, and many pay a thirteenth month, travel allowances or other benefits. Sickness costs matter too, because Dutch employers keep paying wages when an employee is ill, and many take out private insurance to cover that risk.

Sources

  1. BelastingdienstBelastingdienst rates annex 2026, tables 9, 11 and 12 · retrieved 2026-10-20

By the CalcBloc teamLast verified

How every figure is checked: methodology.