Own-entity payroll in the Netherlands: registration, returns and levies
EREditorial team · Updated 14 Oct 20267 min read14 providers compared22 sources
€4,799 employer cost a month on your own payroll, €45,000 salaryNot all-in: what it leaves out is under the cost table.
≈20% employer levies on salary, own payroll
1 registration before the first payslip
49.5% top wage tax rate in 2026, below state pension age
Before the first Dutch payroll, your entity registers as an employer with the Tax Administration and receives a payroll tax number and a filing letter. Levies then add ≈20% to salary, charged on salary plus holiday allowance.
Short answer
The first step is a form to the Tax Administration, which returns a payroll tax number (loonheffingennummer).
Each return and its payment are due by the date in the filing letter, at least one month after the period ends.
Holiday allowance counts as wages, so the levies fall on salary plus the allowance, up to a yearly ceiling.
Each employer's Whk premium is set by the Tax Administration; the cost table uses the starting large-employer figure.
On this page
What has to happen before the first payroll
One registration stands between a Dutch entity and its first payslip. A company taking on staff for the first time reports to the Tax Administration as an employer on a form. In return it gets a payroll tax number (loonheffingennummer) and a filing letter (Aangiftebrief loonheffingen) that lists its filing periods.[1] The set-up table shows this step without a duration.
The filing letter then sets the rhythm. Payroll tax returns go in once a month or once every four weeks.[2] The return is filed after the period ends, by a date at least one month later, and the tax is paid within one month of the period’s end.[3] Each month the employer withholds payroll tax from the employee’s salary and pays the employee insurance premiums from its own pocket.[4] With the first pay, and whenever the amounts change, the employee gets a payslip showing gross pay, deductions and the applicable minimum wage.[5] The registration and the ongoing duties, with their deadlines, are listed below.
Running payroll month to month
A single definition of wages drives the whole run. The same wage figure counts for wage tax, for the employee insurances and for the health insurance levy (Zvw).[6] The employee is owed a holiday allowance of at least 8%[7], and that allowance is wages for the payroll levies,[8] so each levy is charged on salary plus allowance, up to the yearly maximum of EUR 79,409.[9]
Two rates depend on you. The low unemployment premium (AWf) applies only to a permanent, written contract that is not on-call; other contracts carry the high rate.[10] The Whk percentage is set for each employer by the Tax Administration, and a starting large employer gets the starting figure for the year.[11] The cost table uses the low AWf rate and that starting Whk figure.
Pension sits outside the cost figures. About 90% of employees build a supplementary pension through the employer, which usually pays about two thirds of the premiums, and in some sectors the employer must use the industry pension fund.[12] The one-hire comparison sets your entity next to an EOR, and the EOR page covers that route.
Registering as an employer
With your own entity, these steps run one after another before the first payroll.
Netherlands: steps to register as an employer
Step
What it involves
Register as an employer with the Tax Administration[1]
A company hiring its first employee notifies the Tax Administration on a form and receives a payroll tax number (loonheffingennummer) and an annual filing letter listing its filing periods.
Employer registrations
Employer registration and payroll tax number
Register with the Tax Administration for the first employee and receive a payroll tax number and a filing letter.[1]
Running payroll: deadlines and filings
The employer withholds payroll tax every month from the employee's salary and pays the employee insurance premiums itself; holiday pay counts as wages for this purpose.[4]
At the first payment and whenever the amounts change, the employee gets a written or electronic statement of gross pay, its parts, the deductions and the minimum wage for the employee's age; electronic only with the employee's express consent.
About 90% of employees build a supplementary pension through the employer, who usually pays about two thirds of the premiums. In some sectors the employer must place its employees' pension with the industry pension fund.
–
What one hire costs
Monthly cost of an employee on €45,000 a year, on your own payroll.
Assumes: Medium or large employer on a permanent, written, non-on-call contract, with Whk at the 2026 starting large employer percentage; the salary is stated before the holiday allowance.
Total to employer, a month€4,799
Salary and mandatory pay€4,05084%
Employer contributions€74916%
Percentages are shares of the total, not of salary.
Holiday allowance (vakantiegeld): The statutory minimum, paid to the employee on top of salary. An employee earning more than three times the minimum wage can agree in writing to a lower allowance or none.
Every levy line is charged on the salary plus the 8% holiday allowance (the allowance counts as wages for these levies), up to the yearly maximum contribution wage of EUR 79,409, which is the same for the employee insurances and the Zvw. The allowance itself is owed to the employee and is shown as its own line, not as a levy. The Whk percentage is set for each employer by the Tax Administration; 1.52% is the 2026 figure it gives a starting large employer. Small employers pay a lower Aof rate (6.27%), employees on fixed-term, on-call or unwritten contracts carry the high AWf rate (7.74%), and public employers pay a Ufo premium of 0.68% in place of AWf. Pension contributions are not included; most employees build a supplementary pension through the employer, and in some sectors the employer must place it with the industry pension fund.
Global payroll providers
All 14 global payroll providers we score: those working in Netherlands first, then the rest, each by our global payroll score. Working in Netherlands: 11 (2 by their global payroll coverage list, the rest inferred from their EOR coverage). How we score
Enterprise teams and small and growing businesses (SMEs), in RemotePass's own words
Not for
Buyers who must review EOR contract terms up front: no EOR agreement is public
Top pro
EOR from $349 per employee a month with tax included; 13 of 20 other EOR prices in dollars start higher
Top con
No EOR agreement is public: the Terms say EOR runs under a separate Consultant Agreement "available on the Site", which we did not find. The public legal documents are the Terms, the Privacy Policy and the Acceptable Use Policy
Companies from startups to enterprises, going by Multiplier's segment pages
Not for
Buyers who need the deposit amount before signing: Multiplier calculates it per contract
Top pro
Own SOC 2 (Type I and II), SOC 3 and ISO 27001:2022 on its security page; the AWS certifications listed there are kept apart as the host's
Top con
The "from" prices assume an annual contract. Monthly EOR costs $499 on Core and $559 on Growth, about 11% of countries are priced differently, and compliance-mandated add-ons come on top of EOR and COR
Companies from startups to enterprises: Playroll has pages for each, and its case studies include startups under 100 staff and mid-market firms of 100 to 1,000
Not for
Contractors who want to be paid other than through Payoneer, the only payout route Playroll uses
Top pro
Its own country pages document EOR hiring in 151 countries + 6 territories, against a claim of 180+
Top con
A refundable deposit of one month's salary per EOR employee; the unused part comes back within two months of the last working day, or once claims are settled if that is later
Startups, growing companies and enterprises, the three segments Pebl writes a page for
Not for
Buyers who need a Contractor of Record: we list Pebl for contractor management, not COR
Top pro
Own SOC 2 Type 2 report and ISO/IEC 27001:2022 certificate, both on Pebl's security page
Top con
No live support channel named: Pebl lists its Alfie AI assistant, in-house experts and a Help Center; its pages say 24/7 support and do not say who answers
Startups, scaling companies and enterprises, the three groups Native Teams writes for
Not for
Buyers who want to read the EOR or COR agreement before talking to sales: the terms of service are the only contract text online
Top pro
EOR from $99 per employee a month, below all 20 other per-employee EOR prices in USD we compare
Top con
The terms of service are the only contract text online. The EOR and COR agreements are not published, and the terms say a separate signed contract takes precedence
Small businesses, including teams under 10 employees, startups and enterprises: the segments Rippling has pages for
Not for
Buyers who want to compare an EOR price before a sales call
Top pro
Contractor onboarding in 185+ countries and payments in 50+ local currencies, per its contractor page; 160 countries + 2 territories are documented here
Top con
No price for EOR, contractor management or global payroll: the pricing page asks for a custom quote
Crypto and web3 teams paying contractors in stablecoins or crypto, a segment Rise names (startups, web3 startups, DAOs, global agencies)
Not for
Companies that need an EOR in countries beyond the US and the UK today
Top pro
Prices are published per head: $49 a contractor a month (discounts for startups and non-profits), $299 for Agent of Record, $399 an employee for EOR
Top con
EOR is documented in 2 countries (US, UK) against a claim of 90+. The parent, Rise Works, Inc., is on the GLEIF register; no own entity is documented in either country
4.2Our score 4.2 of 10Limited dataOur global payroll score
Global payroll price
Custom quote
ServicesEOR · Payouts · Contractors · Payroll
Best for
Startups, SMBs, agencies and enterprises: the segments Remozo names for its contractor product
Not for
Buyers whose security review asks for SOC 2 or ISO 27001 held by Remozo itself
Top pro
Contractor payouts claimed in 190+ countries; 98 are listed one by one in Remozo's help centre
Top con
Contractor plan from 3% per payout: for contractor payouts, 2 of the 6 other percentage prices we compare are lower and 1 the same. The contractor page says from 1.5%, which we do not score
One hire on €45,000 a year, through your own entity and through an EOR, from the figures on this page and the EOR page. The own-entity cost leaves out what running the entity costs, so the two columns are not like for like.
Netherlands: own entity and EOR for one hire
Compared
Own entity
Employer of Record
Before the first hire
One set-up and registration step
No entity: the EOR’s entity employs
Employer cost a month, before any provider fee
€4,799
€4,799
Provider fee a month
–
€299 a month (one provider, EUR); US$99 to US$699 a month (17 providers, USD)
Fewer than 3 providers publish a fee in EUR, so no total with the fee is given; fees in other currencies are not converted.
Neither figure is all-in: both leave out the costs named under the cost table.
By the date in the filing letter. Returns go in once a month or once every four weeks, after each period ends; the law sets the filing date at least one month after the period and the payment within one month.
What is the Whk premium?
The premium for the Return to Work Fund (Whk), which the Tax Administration sets for each employer by decision. For 2026 a starting large employer gets 1.52%, and the individual rate can later be set higher or lower.
Is holiday allowance subject to payroll tax in the Netherlands?
Yes. Holiday allowance counts as wages for payroll tax, so the employer withholds tax on it and pays the employee insurance levies on it as well.
Is there a ceiling on Dutch employer contributions?
The base is capped, not the contribution. Levies stop at EUR 79,409 a year of salary plus holiday allowance, the same maximum for the employee insurances and the Zvw.
Works in Netherlands
