Netherlands (Holland) - Tax Guide for Freelance Contractors

Social Security

Residents and non-residents working in The Netherlands are required to pay social security contributions on their gross salary in The Netherlands or in the country of their employer after an E101 has been issued.

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 to be paid on the employee’s gross salary.

Social security rates for 2010:

• ca. 19.43% for employers on gross salaries, including:
•         7.05% health of up to a maximum of EUR 33’189 per year
•         0.34% is for child care contribution up to a maximum of EUR 32’011
•         5.70% general standard disability contribution  of up to a maximum of EUR 48’715 per year,
•         0.07% disability insurance surcharge up to a maximum of EUR 48’715,
•         0.59% work resumption premium up to a maximum of EUR 48’715,
•         1.48% average redundancy contribution (Wachtgeld) up to a  maximum of  EUR 32’011
•         4.20% unemployment general contribution  of up to a maximum of EUR 32’011 per year.

Unemployment contributions to be paid by employees have been abolished as of 1 January 2009.