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Dutch payroll combines loonheffing filing with the Belastingdienst, 8% holiday allowance accrual, and the 30% ruling for international hires. Rippling handles all three so your BV meets its obligations every pay cycle.
Dutch payroll operates through the loonheffingen system — a combined payroll tax (loonbelasting) and social insurance premium (premies volksverzekeringen) payment remitted monthly to the Belastingdienst. Employers file the Loonaangifte (payroll declaration) per period via the Belastingdienst's portal or an integrated payroll system like Rippling.
The 8% vakantiegeld (holiday allowance) is a distinctive feature of Dutch payroll — employers accrue 8% of gross salary each month and typically pay it out in May. This must be reflected in total employment cost modeling when making salary offers in the Netherlands.
The 30% ruling (expatriate tax advantage) requires ongoing payroll administration — Rippling tracks the ruling's applicable period and adjusts the taxable salary accordingly.
Rippling's Dutch payroll module provides:
| Contribution | Rate | Notes |
|---|---|---|
| WW (Unemployment) — Low Risk | 2.64% | For permanent contracts. High risk (flex): 10.45%. |
| WAO/WIA (Disability) | ~6.17% | Employer-only. Rate varies by sector and employer claim history. |
| ZVW (Health Care Contribution) | 6.57% | Employer-only, on salary up to €71,628 (2024). |
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| Contribution | Rate | Notes |
|---|---|---|
| AOW (State Pension) | 17.9% | On income up to €40,021. Included in loonheffingen. |
| ANW (Survivors' Pension) | 0.1% | Included in loonheffingen. |
| Wlz (Long-term Care) | 9.65% | On income up to €40,021. Included in loonheffingen. |
| Income Tax (Loonbelasting) | 36.97%/49.50% | Box 1 rates. Calculated within loonheffingen. |
| Box 1 Band | Income | Rate (incl. national insurance) |
|---|---|---|
| Low | Up to €75,518 | 36.97% |
| High | Over €75,518 | 49.50% |
For employees with the 30% ruling: 30% of salary (or 27% in years 4–5 from 2024 reform) is treated as a tax-free allowance, significantly reducing the Box 1 tax base. Rippling tracks the ruling period per employee and calculates the reduced taxable salary automatically.
Final pay must include accrued vakantiegeld and unused vacation days. The transitievergoeding (transition allowance — 1/3 month per year of service, capped at €94,000) must be paid within 1 month of termination. Rippling calculates the transitievergoeding on offboarding for eligible employees.
Statutory: Social insurance (AOW, WW, WIA, ZVW), 20 days annual leave, 8% vakantiegeld, 2-year sick pay obligation.
Market standard: Private pension plan (the AOW is modest — supplementary pension is near-universal for professional roles), reiskostenvergoeding (travel allowance at €0.23/km tax-free), laptop/phone, training budget. Amsterdam tech market: equity, 26–28 days leave, home office allowance, flexible working.
Loonheffingen is the combined payroll levy in the Netherlands that includes income tax withholding (loonbelasting) and national insurance premiums (volksverzekeringen: AOW, ANW, Wlz). Employers calculate and remit the combined amount to the Belastingdienst monthly via the Loonaangifte declaration. Rippling handles all loonheffingen calculations and Loonaangifte submissions automatically.
Vakantiegeld is the statutory 8% holiday allowance accrued on gross annual salary. It is a mandatory component of Dutch employment and represents a significant payroll cost. By law it must be paid at least once per year — most employers pay it in May. It must also be paid out on termination for the accrued but unpaid portion. Rippling accrues vakantiegeld each month and automates the May payment and termination payout.
The WW (unemployment insurance) premium has two rates: 2.64% for permanent contracts and 10.45% for flexible/fixed-term contracts. This creates a meaningful cost difference between contract types — a permanent employee on €80,000 annual salary costs approximately €6,000 less per year in WW premiums than the same employee on a fixed-term contract. Rippling applies the correct rate based on the contract type configured in the employee record.
Yes. Rippling's Dutch payroll module handles loonheffingen calculations, Loonaangifte submissions, vakantiegeld accrual and payment, and 30% ruling administration. thePeopleStack configures the full Dutch payroll setup including Belastingdienst registration, UWV setup, and 30% ruling intake process. Contact us to scope your Netherlands payroll configuration.
