Chesterfield (London) 
207 Old Marylebone Road
Tel: +44 (0) 203 771 3853
Fax: +44 (0) 203 771 3856

Social Security in Holland

IT Contractors working in Holland whether resident or not are required to pay social security in Holland or in the country of their employer.

At Chesterfield Management we will discuss the different options available in relation to umbrella company services, to maximize take home income, whilst remaining fully tax compliant payroll services for contractors in the Netherlands.

Current social security rates in the Netherlands and which rank amongst the highest in Europe are:
22% for employers approximately,
7.15% plus a minimum level of heath insurance contribution of approx. €1,222 for employees approximately.

Social Security
There are two different types of Social Security Acts in Holland, the National Insurance Acts, and the Employee Insurance Acts. The first, the National Insurance Acts, provide benefits to all Dutch residents. National Insurance contributions are payable on all taxable income of up to €34,055, and the maximum contribution payable annually by an employee after taking the social security credit into account is €7,192. 
Employee Insurance Acts are related to wage earners and provide additional benefits. No payment towards employee insurance is paid by the employee, but employers must pay approximately €5,500.

Everyone who is socially insured in Holland must have a health insurance policy in place. Over the age of 18, a standard contribution of approximately €1,222 is payable. A further income related contribution is payable at a rate of 7.15% for employees, or 5% for self employed individuals. The maximum contribution is €3,579 and employers are required to reimburse employees this contribution up to the maximum this then becomes taxable income for the employee. Anyone who is not socially insured in Holland must register with a care insurance in order to have right to medical care.

The Netherlands has two types of social security:
  • Employee social security contributions which form part of the lowest two income tax rates under Box 1, and
  • Employer’s social security contributions are paid on the employee’s gross salary.

Social security rates for 2012:
ca. 21.20% for employers on gross salaries, including:
7.10% health of up to a maximum of EUR 33’427 per year,
4.55% unemployment,
2.79% pension contribution,
5.05% disability insurance
1.586% sickness benefit,
0.13% Wao/Wga gediff

At Chesterfield Management we can guide you through the agency compliance procedure and help you to reduce the social security burden substantially.

To learn more contact us on our office telephone number 0044 (0)2070971385, request a call-back, or click here to email us .

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