Working in the Netherlands

Many of you have come to the Netherlands as an expatriate – placed or transferred here by your employer – so that many of the important things have been taken care of. On the other hand, many of you have not come here with the full company support system behind you. If this is the case, there are a number of things you need to know before entering the job market, such as: the make-up of the Dutch employment market, finding a job here as an expatriate, Dutch labor law, the Dutch social security system, the possibilities of continuing the social insurance legislation of your country of origin in the Netherlands and how to go about setting up your own business.
Going through this chapter will help you prepare for your ventures, by giving an overview of these topics as well as, on the reference page, the addresses, phone numbers and websites of those organizations that can help you along the way.

Emancipation?

The Netherlands is known abroad as a greatly ‘emancipated’ country, where women share an equal standing with men. To a large degree this is true, in fact, many expats comment on how the Dutch women are the ones “who wear the pants at home” – to use a Dutch expression. However, the workforce does not reflect this emancipation, particularly not in the full-time or highest paid jobs sectors. The cause for this should presumably be sought in the fact that, aside from the fact that there is relatively little government support for child care, Dutch social values dictate that women are expected to spend time with their children.
Many expat women find themselves quite dismayed at how few women are in top positions, and though the amount of women in employment has gone up from 52% to 59%, most of them are still in part-time positions – and consequently not in the businesses’ top echelons nor among the top earners.

Multilingual Jobs
 
When looking for employment in the Netherlands whereby you can work in your native language, you can either register with various specialized employment agencies (a listing of these can be found by clicking on the link at the top of the page) or you can apply directly to companies where the business language is your native language. The job market encompasses a wide spectrum of professions including, but not limited to: administration, secretarial, IT, finance, marketing, support staff, sales, logistics, middle and senior management, etc.
Most Dutch people speak more than one foreign language, however, the international centers and companies have a preference for native speakers. This having been said, do keep in mind that the Dutch labor market is strictly protected and that being a native speaker of some other language will no longer automatically qualify you, if the Dutch authorities are of the opinion that your prospective employer should be able to find a Dutch/EU/EEA/Swiss employee who can also speak your language.

Citizen Service Number 

Everyone who is employed legally has a ‘social-fiscal’ number (the Citizen Service Number) for tax purposes. If you are going to reside in the Netherlands, you have the legal obligation to register with the municipality – and its Municipal Basic Administration for Persons – within three days of your arrival. You are then issued your personal Citizen Service Number. This number is necessary for your employer to pay your salary and to ensure that contributions for your benefits are properly credited. You will also this number when you register with temporary job agencies.

Social Security

Those who work in the Netherlands, their partners and other members of their families, are in almost all cases subject to the Dutch social security system. There are two kinds of compulsory social insurance schemes in the Netherlands; one applicable to the population in general, and one to employees. If the 30%-ruling can be applied, the contributions under the national insurance schemes are calculated on the employee’s wage or salary excluding the 30%-allowance, while the 30%-allowance may also affect the calculation of contributions for the employee insurance schemes.

National Insurance Schemes 

In principle the national insurance schemes (volksverzekeringen) cover all persons living or working in the Netherlands. The schemes are as follows:

1. General Old Age Pensions Act (AOW): entitles a person to an old age pension upon reaching the age of 65.

2. General Surviving Relatives Act (ANW): provides entitlements to benefits for widows, widowers and dependent children.

3. Exceptional Medical Expenses Act (AWBZ): makes a provision for treatment and nursing in recognized institutions and nursing homes, and artificial appliances – other than that which is covered by the Health Insurance Act (ZFW) or private health insurance.

4. The (new) Health Insurance Act (ZVW): As of January 1, 2006, pursuant to the new Health Insurance Act, everyone who legally resides in the Netherlands is obligated to have health insurance, to be taken out with a ‘private’ health insurance company. You have a choice between a 'policy in kind' or the 'restitution policy'.

5. Child Benefit (AKW): a child benefit (kinderbijslag) for children under the age of 18. 
 

Employee Insurance Schemes

In principle, anyone employed in the Netherlands is compulsorily insured under the employee insurance schemes (werknemersverzekeringen). The schemes are as follows:

1. Sickness Benefits Act (ZW) / WULBZ / WVBLZ: entitles employees to 70% (with a maximum) of their salary during the first 52 weeks of sickness. Female employees are given leave of at least sixteen weeks in the event of pregnancy, during which period sick pay is also paid out.

2. The Working in Accordance with Capacity Act (WIA): entitles all employees who, as of January 1, 2006, have been disabled for work for more than 104 weeks. In the case of complete and permanent disability, this will not be necessary and the employee will have a right to an IVA-benefit.

3. Disability Insurance Act I (WAO): entitles employees under the age of 65 to benefits if they are still at least 15% unfit for work after 52 weeks of disability. The WAO will continue to apply to employees who already receiving the WAO-benefit on January 1, 2006.

4. Unemployment Insurance Act (WW): insures employees against the financial consequences of unemployment.

Starting your own company in the Netherlands
 
You will need a residence permit and Citizen Service Number if you plan to set up a business in the Netherlands. Furthermore, you can turn to the following organizations for assistance:

Chamber of Commerce: The Chamber of Commerce is a public institution and the information desk can provide you with information on how to start a business, which diplomas you need for your specific line of business, how to write a solid business plan to be able to finance your ideas and what plans your municipality has within the area in which you want to establish your firm.

IMK: Instituut voor Midden- en Kleinbedrijf, Institute for Small and Medium-Sized Companies. The IMK has prepared a manual covering the specifics for those who want to start up a business and offers starter courses.

Other institutions: Both the banks and the national tax office have information desks for people who plan to start their own business and can provide you with the needed information. And all major cities have a business desk in the town hall. 
 

For useful addresses and websites, please use the info-link button at the top of this page

More on these subjects can be found in The Holland Handbook 2010 - 2011

© Copyright 2010 XPat Media