A payroll company, or payroll service, allows you to hire people, without employing them yourself. Read here all about payrolling and the top payroll companies in The Netherlands:
Payroll Companies in The Netherlands:
Setting up and managing payroll in the Netherlands is an investment in time and money. Especially if you don’t have a legal entity in The Netherlands.
You have to stay updated with the different rules and changes in policy.
Luckily there’s many payroll services in The Netherlands that can help you with this:
Deel
Founded in 2018, Deel is a global payroll provider simplifying payments and compliance for remote teams. With a user-friendly platform, Deel helps businesses manage international payroll, including salary payments, tax withholding, and benefits administration, ensuring compliance with local labor laws.
Remote.com
Founded to simplify global employment, Remote is a payroll and employment platform allowing companies to employ international talent compliantly. With operations in over 150 countries, including the Netherlands, Remote handles all aspects of payroll processing, tax compliance, and benefits administration, enabling businesses to expand their teams globally without legal entities.
Oyster HR
Oyster HR offers comprehensive HR and payroll solutions for businesses of all sizes. Founded to streamline HR operations, Oyster HR automates payroll processing, employee management, and benefits administration, helping businesses stay compliant with Dutch employment laws.
Papaya Global
Papaya Global is a SaaS fintech company providing global payroll and payments technology. The company is leading the way in remote work and global EOR solutions with their hiring, onboarding, and payroll management system. They serve customers such as Datadog, SentinelOne, Canva and Wix.
Lano
Founded in Berlin in 2018, Lano is the platform for hiring, managing and paying employees all over the world. They give global businesses the flexibility they need to build and grow their global teams. Lano serves customers such as Preply, Scout24 and European Climate Foundation.
What is a Payroll Company?
A Payroll Company manages your employee payroll and related services. It is a special form of hiring employees.
A Payroll company employs the employees who work for your company. You recruit and hire the employees yourself, while the payroll company takes care of administrative tasks such as the salary administration and payout.
When do you need a payroll service in The Netherlands?
Businesses in the Netherlands choose for the services of a payroll company when they require efficient and compliant payroll management, need to streamline administrative processes or need support in navigating the Dutch payroll regulations and tax laws.
For example, you need a payroll service in The Netherlands when you want to hire people here, but you don’t have a legal entity.
Outsourcing payroll functions can help the growth and efficiency of your business, while being compliant with local Dutch law.
Responsibilities of a Payroll Company
Payroll companies in The Netherlands handle different aspects of payroll processing. Think about the following payroll services:
- Setting up the employment agreement
- Converting currencies
- Generating payslips and annual income statements
- Payout of salaries
- Paying the payroll taxes and social security contributions
- Staying compliant with labor laws and regulations
To sum up, payroll companies take over your administrative and legal tasks.
Employment Law in The Netherlands
In the Netherlands, employment law covers topics related to salaries and pensions. Ensuring fair treatment of employees and compliance with legal requirements.
Many important aspects of the Dutch employment- and labor laws are determined on a yearly basis, such as the minimum wage and income tax.
Here are some important things to know:
– Rights of employees on the payroll
Payrollers are entitled to the same working conditions as the employees on a fixed-term or permanent contract. As a company, you will inform the payroll company about the working conditions of your employees.
– Salaries in The Netherlands
Employees in The Netherlands get paid once a month, typically before the end of the month.
The minimum salary in The Netherlands is € 13.27 per hour. This is €2,317.83 per month. Data from 2024.
Read here more about salaries in The Netherlands.
– Pension in The Netherlands
There is no mandatory pension scheme in the Netherlands. Although the majority of the employers offer a pension scheme.
Employees on the payroll can participate in the pension scheme of your company or the payroll providor can arrange their own pension scheme.
How to choose a Payroll Company?
1. Owned entity
It’s important that you choose a payroll provider that has an owned entity in The Netherlands. This way you make sure your company is compliant with the local Dutch laws. Compliance with local legislation is important to avoid legal issues and penalties.
There are also payroll providers that offer services in The Netherlands by outsourcing this to other providors. This is not a payroll service you want to go for.
2. EOR or PEO
When you choose a PEO, Professional Employment Organization, you employ your own employees. The PEO is responsible for the payroll and benefits. You can only work with a PEO if your business already has a local Dutch entity.
When you choose an EOR, Employer of Record, as a payroll company, you don’t need a Dutch entity. The EOR hires employees for you via a service agreement.
3. Services
Payroll companies in The Netherlands offer a wide range of services. Make sure they align with your business requirements. Do you need basic payroll processing or also additional HR services or assistance with compliance and tax filings.
4. Reviews and reputation
Look for payroll service providers with a strong reputation and extensive experience in the Dutch market. Research their track record and client testimonials.
You can also look at similar companies to yours, and research which payroll services they use and if they’re satisfied with them.
5. Customer support
You will have questions and unique situations coming up when outsourcing your payroll. Therefore, you need good customer support.
Assess the level of customer support provided by the payroll service provider. Look at factors such as accessibility, responsiveness, and the availability of dedicated account managers or support teams.
6. Scalability
Maybe you’re not only expanding in The Netherlands, but you’re also looking to hire people in other countries. Or maybe you’re a remote company that is looking for a suitable payroll service in The Netherlands.
Consider whether the payroll service provider can accommodate your business’s growth and changing needs. Look for scalability and flexibility in terms of services offered, pricing models, and support for expanding operations.
7. Costs
Understand the pricing structure of the payroll service, including any setup fees, recurring charges, and additional costs for extra services. Compare pricing across different payroll companies to ensure you’re getting value for money.