Guide to living and working in Netherlands
Netherlands
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View the latest Netherland Jobs on Exposure Jobs |
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Country Overview |
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Population |
16.3million |
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Unemployment Rate |
4.0% (03/08) |
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Average annual unemployment rate 1995 – 2006 |
3.9% |
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GDP |
€386bn / $602bn (2007) |
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GDP per head |
€26,242 / $38,290 (2007) |
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Capital |
Amsterdam Governmentt: The Hague |
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Major language |
Dutch |
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Life Expectancy (UN) |
78 years (men) 82 years (women) |
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Monetary unit |
1 euro = 100 cents |
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Internet domain |
.nl |
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International dialing code |
+31 |
The Netherlands has a prosperous and open economy, which depends heavily on foreign trade. The economy has stable industrial relations, low unemployment and inflation, a sizable current account surplus, and an important role as a European transportation centre. Industrial activity is predominantly in food processing, chemicals, petroleum refining, and electrical machinery. A highly mechanized agricultural sector employs no more than 3% of the labour force but provides large surpluses for the food-processing industry and exports. The country continues to be one of the leading European nations for attracting foreign direct investment and is one of the five largest investors in the US. The economy experienced a slowdown in 2005 but in 2006 recovered to the fastest pace in six years owing to increased exports and strong investment. In 2007, the pace of job growth reached a 10-year high.
The Economy
Industries include: agro-industries, metal and engineering products, electrical machinery and equipment, chemicals, petroleum, construction, microelectronics, and fishing.
Pay
Human development Index
Ranking: 9th
Index value: 0.953
The Human Development Index combines statistics on GDP, adult literacy, average years of schooling and life expectancy to provide an indicator of human development. The HDI shown here gives the ranking of 24 countries among 177. See http://hdr.undp.org/en/ for more information.
Getting a job
Overview of the labour market:
Problems in the Dutch labour market continue to increase as the number of job vacancies rise and unemployment falls. The Job Vacancy Survey of the Centre for Work and Income showed that in 2006 almost 28% of vacancies were regarded by employers as hard to fill. This is because of skills-shortages and unsuitable candidates applying for certain jobs. The construction and industrial sectors have a higher than average number of hard-to-fill vacancies. This also applies to vacancies for technical, nursing and paramedical personnel and for job vacancies at higher educational levels.
Applying for a job:
When applying for a job, applications differ depending on the sector. In the case of agricultural and low-skilled staff, employers usually appreciate a personal visit. Applications from abroad are generally made in writing. For jobs at a qualified and highly qualified level, a typed application letter with CV is the standard procedure.
Application letters: should be in Dutch (unless otherwise indicated or in response to an English or other language ad), typed and written on one A4 sheet. You should first explain why you are applying for the job concerned; then indicate why you believe you are a suitable candidate and why you are motivated to do the job (motivation is one of the most important selection criteria for Dutch employers). Finally, express that you would be pleased to attend an interview to explain your application in person.
The Curriculum Vitae (CV): is normally a maximum of 2 pages (A4 format) and should be in the following order:
- Personal details
- Education (including relevant courses, exact start and end dates and whether you have a degree; start with your most recent education)
- Work experience (including exact start and end dates); start with your most recent job; mention the name of the employer and the tasks carried out
- Hobbies and voluntary work
References and copies of certificates don’t need to be attached. These can be taken with you to the interview. Application forms are mainly used by large-scale employers and for online applications. Unsolicited applications are very common in the Netherlands. It is not unusual to phone a company beforehand, both for open and targeted applications.
Interviews: the emphasis is placed on your motivation; why have you chosen this job with this company? The interview is usually with one or two people and more than one interview is common.
Conditions and rights
Employment law:
Dutch employers are required to operate within a fairly rigid system of statutory rights and obligations. The primary source of legal rights is book seven of the Dutch Civil Code, which contains the tenth title laying down rules concerning the employment contract. Some scope for varying employment terms exists through the 'three-quarter coercive' statutory provisions. These permit derogation through collective labour agreements. There are also 'semi-coercive' provisions where derogations may be achieved by written contractual agreements with individual employees.
Working hours:
Standard hours: By law you may not work for more than nine hours a day and 45 hours a week. The average working week is between 36 and 40 hours. The Netherlands has a five-day working week, although four-day working weeks are sometimes found.
Holidays and leave:
Paid leave: All employees in the Netherlands are entitled to paid holiday. The legal amount of holiday each year is at least four times the number of working hours each week. Most Collective Agreements provide for an amount of holiday that differs from this minimum. The number generally varies from 20 to 30 days for full-time employees. Regardless of your wage, you can claim a minimum holiday allowance of 8%; this is known as holiday pay.
Other types of leave: The Work and Care regulations give:
- Up to 10 days’ paid carer’s leave
- Maternity leave
- Two working days’ maternity leave for the partner and flexibility to share parental leave
- Adoption leave for both adopting parents
Netherlands Public holidays: 1st January, Good Friday, Easter Monday, 30th April, 5th May (celebrated once every five years), Ascension, Pentecost, 25th and 26th December. The feast of St. Nicholas is celebrated on 5th December and on this day some companies close one hour earlier.
Contracts
Types of employment:
People can work from the age of 16. In recent years, flexible employment contracts have become more common as a result of high social cost and difficulties in making full-time employees redundant in cyclical businesses. An increasing number of employees have a temporary contract, a temping job or an on-call contract.
Temporary employment is a good way of gaining work experience, which is considered extremely important in the Netherlands. There is also the possibility to enter into a learn-work agreement. Within all these different types of employment contract, many employees work part-time. Other forms of employment include self-employed work with or without staff, street artists and voluntary work.
Employment contracts:
A verbal contract of employment is legally valid in the Netherlands, but it is necessary to have the following agreements set down in writing:
- name and residence of your employer and yourself;
- place(s) where the work is carried out;
- your position or the nature of the work;
- time of entry into service;
- duration of the agreement if for a fixed period;
- wage and payment date;
- usual working hours per week or per day;
- trial period where applicable (max. 2 months);
- notice periods.
Two forms of written employment contract are commonly used in the Netherlands, namely:
- Permanent employment contracts: this contract runs for as long as neither party terminates it. Certain rules govern its termination, such as observing a period of notice.
- Temporary employment contracts: this employment contract has an end date and is signed for the duration of a particular project.
Temporary contracts may be extended under certain conditions.The most important difference is the duration of the contract. It is normal for a new job to begin with a temporary contract (for six months or a year).
Work permits and visas
Work permits:
Citizens of full European (EFTA, EEA) Member Countries: are able to live and work in The Netherlands without a visa or work permit.
Citizens of ‘new’ EU Member Countries: (Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia and Slovenia) will need to apply for a work permit to work in the Netherlands. Employers need to apply for the work permit.
Non-EU citizens: must obtain a work visa or permit to work in the Netherlands.
Visas:
The Netherlands are a signatory to the Schengen Treaty. The 15 Schengen countries are: Austria, Belgium, Denmark, Finland, France, Germany, Iceland, Italy, Greece, Luxembourg, Netherlands, Norway, Portugal, Spain and Sweden. With a Schengen visa, you may enter one country and travel freely throughout the Schengen zone.
Passport holders from the following countries do not need a visa to visit: other Schengen countries: Andorra, Argentina, Australia, Bolivia, Brunei, Bulgaria, Canada, Chile, Costa Rica, Croatia, El Salvador, Guatemala, and Honduras. Israel, Japan, Republic Of Korea, Liechtenstein, Malaysia, Mexico, Monaco, New Zealand, Nicaragua, Panama, Paraguay, Romania, San Marino, Singapore, Switzerland, United States, Uruguay, Vatican and Venezuela.
Nationals of countries not mentioned above will need a visa to visit The Netherlands. To apply for visas contact your nearest Embassy or Consulate of the Netherlands.
Tax, social security and healthcare
Taxation system:
Individuals living in the Netherlands (resident taxpayers) and individuals who do not live in the Netherlands but who receive income from the Netherlands (non-resident taxpayers) are liable for income tax. Residents are taxed on their entire income, regardless of the place of origin. Non-residents are only taxed on income directly connected with the territory of the Netherlands.
Individuals may receive income from different sources, and income tax takes into account the origin of the income and distinguishes three categories. These categories are known as ‘boxes’. The income in each of the three boxes is taxed at a different rate and the total of the tax owed in the three boxes is the income tax payable:
- Box 1 taxable income from work and dwellings;
- Box 2 taxable income from substantial interest;
- Box 3 taxable income from savings and investments.
Rates:
Tax on taxable income for income from work and dwellings (box 1) is:
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Income Band (€) |
Tax (%) |
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0 – 17,579 |
33.6% |
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17,579 – 31,589 |
41.85% |
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31,589 – 53,860 |
42% |
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53,860+ |
52% |
For the fiscal year 2008, taxable income from a substantial interest (box 2) is taxed at 25%.
Taxable income from savings and investments (box 3) is taxed at a flat rate of 30% taking into account a redemption yield of 4%. Expats can opt for an exemption from this taxation on savings and some/all of their investments.
Social security system:
The Dutch social security system is one of the most comprehensive in the EU. On starting work in the Netherlands, you automatically begin making payments into the Dutch social security system. Most social security contributions are deducted automatically from your salary. In terms of employee insurance, both you and your employer pay contributions. If you are legally resident in the Netherlands but lack the means to support yourself owing to long-term disability or unemployment, you can claim benefit from the Dutch state. Your entitlement to benefit as a result of involuntary unemployment is only considered a temporary measure.
Health systems:
Medical insurance is obligatory when you live and/or work in the Netherlands. There is a general basic insurance, which is covered by private insurers against medical expenses. Those on a low income have the right to a so-called ‘care allowance’, up to a maximum amount of €330 per year. Cover is basic so it is recommended to take out additional cover for the cost of:
- regular dental care;
- physiotherapy and
- other long-term treatments.
The basic insurance and the additional insurance do not have to be taken out with the same insurance company. When you live in the Netherlands, you should register with a General Practitioner. You can choose your own GP, but your choice is limited to the neighbourhood in which you live. If specialist treatment is considered necessary, the GP will refer you to a hospital or specialist. This is the only way in which specialist treatment can be received, with the following exceptions:
- dental care
- treatment by the accident and emergency departments in larger hospitals