Hiring foreign employees directly

As a Dutch employer, there are a number of things to consider if you’re planning on hiring foreign employees directly.

Implications of hiring foreign employees directly

Dutch regulations regarding wages and income tax apply to every foreign employee, who officially still lives abroad but works for a Dutch employer in the Netherlands. In addition, the foreign employee is also obligated to take out an employee insurance, national insurance and health insurance.

This means that you as a Dutch employer are obliged to withhold income tax and social insurance contributions from your foreign employee’s earnings. This obligation is among others determined by the Aliens Employment Act and the Minimum Wage Act. Compliance to these rules and regulations will be controlled by the Labour Inspectorate.