When you start a new job in the Netherlands it’s always a challenge to understand how your salary is calculated, how much tax you are paying and how to read your payslip. You may also wonder if you are receiving a fair wage.
Here is some general information to help you understand how salaries are taxed, what salary you can expect (depending on your experience and industry) and what the minimum wage is in the Netherlands.
One of the most important things to understand about your Dutch salary is the difference between your gross and net salary.
Your gross salary (bruto salaris) is the total amount of your salary before tax and other costs are deducted.
Your net income (netto salaris) is your salary after income tax, social security payments and contributions for your pension have been deducted.
The net salary is the amount that is deposited in your bank account each month. When discussing your salary, your employer will almost always refer to the gross monthly amount. Be sure to check the net amount as there is a quite a difference between the two values.
For example, if your salary is 2.500 euros gross per month, (27.778 euros a year including 8% holiday allowance), then after taxes and social security contributions you will take home around 1.995 euros net per month. Use a salary calculator to get an indication of your net monthly income.
In addition to your standard monthly salary, in the month of May, you will receive a holiday allowance equivalent to 8% of annual earnings (roughly one month’s salary). This is to cover expenses for your summer holidays.
Some employers also offer performance-based bonuses which may be paid out on a monthly, quarterly or annual basis. Other benefits can include a company car, mobile phone or the coverage of your monthly costs for transportation.
Highly skilled migrants recruited from abroad often enjoy even more attractive remuneration packages, with the coverage of relocation, initial accommodation / short stay and (sometimes) the fees for international schools for their children.
Your monthly salary, holiday allowance and any bonuses or benefits all add up to equal your total annual income.
In the Netherlands, employees receive a payslip (loonstrook) from their employer each time they are paid. The payment breakdown on Dutch payslips can be hard to interpret. Here is an overview of the main terms used:
Your payslip may also state which social security premiums (sociale verzekeringen) you contribute to (and are covered by). Social security premiums can include:
According to the Centraal Planbureau (CPB), in 2024, the median gross income for a person working in the Netherlands is 44.000 euros gross per year. A salary can vary greatly from the median income as it is influenced by age, sector, professional experience and hours worked. We explore some of these factors in the tables below.
Source: CBS, year: 2022
Below is an overview of entry-level salaries in the Netherlands. These amounts are based on the average starting salaries of Dutch high school and university graduates one and half years after they completed their studies.
Source: SEO
If you are more advanced in your career, or you were recruited from abroad, most likely your salary is already higher. To get a specific indication of your salary in the Netherlands, make use of the Salariskompas (in Dutch). Besides providing a tailored salary guide, this site can also indicate the benefits, number of holidays and working hours (including overtime) that apply to your specific field and sector.
The legal minimum wage (minimumloon) in the Netherlands is based on age. As of January 1, 2024, the statutory minimum hourly wage was introduced. There are no longer fixed minimum monthly, weekly and daily wages.
What you make per week or month when you earn the minimum hourly wage depends on your working hours. Working hours include:
This means that as some months have more working days than others, your salary may differ per month.
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