Spotlight on the Netherlands: A guide to implementing employee benefits technology

The Netherlands has a highly structured benefits landscape – shaped by both statutory requirements and well-established collective labor agreements (CLAs). Employers are required to provide essential benefits such as pensions, healthcare support, insurance protections, and leave entitlements.

In addition to these mandatory elements, many organizations in the Netherlands offer a wide range of supplementary benefits to support employee wellbeing and remain competitive in a tight European labor market.

Mandatory benefits

Dutch employers must comply with a wide range of statutory requirements, including:

Pension contributions

While not mandated by national law, most employees are enrolled in occupational pension plans through CLAs. Employers typically contribute between 10% and 20% of an employee’s salary to these plans.

Unemployment insurance (Werkloosheidswet – WW)

This is funded by employer contributions and provides income support to employees who become involuntarily unemployed.

Disability insurance (Work and Income – WIA)

Disability insurance covers long-term illness or disability. Employers must be paying the employee’s full salary for the first two years before help through WIA can be accessed.

Holiday bonuses (Vakantiegeld)

Employees must receive a holiday bonus of at least 8% of their gross annual salary, typically paid in May or June.

Arbo services and insurance

Employers are legally required to contract with an occupational health service, ‘Arbodienst’, for health and safety support. This includes company doctor access, reintegration assistance, and risk assessments. Many employers also purchase ‘verzuimverzekering’, a type of sick leave insurance to cover extended wage payments during illness.

Core benefits

Beyond legal obligations, most Dutch employers offer a robust range of core benefits to support their workforce:

Health insurance

Health insurance is mandatory for all residents in the Netherlands, including employees. While employers aren’t required to contribute, many offer group discounts or partial reimbursements. Employees choose their own provider and can enhance coverage to include dental care, physiotherapy, and other services at their own cost. Some employers also support cover for family members. Even without direct contributions, helping employees navigate options or offering discounts can boost the appeal of your overall benefits package.

Supplementary pension plans

Some employers provide enhanced pension contributions that scale with age. For example, contributions may begin at 7.4% for employees aged 21–25 and increase to over 29% by age 65. Employees typically contribute around 2%, with the option to increase their share.

This is an example from one of our customers in the Netherlands:

WGA (Return to Work) gap or WIA excess insurance

WGA (Return to Work) gap insurance covers the shortfall in income that can occur when an employee becomes long-term disabled and their statutory WIA benefits fall below 70% of their previous salary. This applies to employees who have been ill for more than two years but are still partially able to work. Typically employer-funded, this coverage is especially valuable for higher earners, helping to bridge the gap between state-provided support and expected income levels.

Travel reimbursements

Reimbursements often include public transport passes or mileage allowances. As sustainability becomes a higher priority, bicycle benefits and eco-friendly transport incentives are becoming more common.

Life and disability

Group life insurance plans are common, typically covering two to three times the employee’s annual salary. Additional accident and disability coverage is often included, starting at four times the employee’s annual salary.

Popular benefits

While not mandatory, these benefits are widely used to improve retention and enhance the overall employee experience:

Bonus and incentive schemes

Incentive schemes are commonly offered by employers and are performance-linked. They’re typically delivered to employees as part of an annual or quarterly bonus plan.

Training and education support

Organizations that want to stay ahead in a competitive talent market are providing funding for professional development, including language courses and other certifications.

Flexible work arrangements

Remote working, hybrid models, and flexible hours are very widespread and culturally ingrained.

It’s highly common for employers to provide employees with a tax-free work-from-home allowance of up to €2 per day for home office expenses, including heating and electricity.

Wellbeing allowances

To support employee wellbeing, many employers are introducing allowances that can be spent on fitness, mental health, and wellness services.

Flex funds

Flex funds are increasingly common in the Netherlands. Employees can use flex funds for a variety of purposes, such as:

• Purchasing extra vacation days.
• Contributing to a pension or savings plan.
• Paying for health and wellbeing programs.

Company bikes

Bike allowances or benefits have traditionally been considered benefit in kind and taxed accordingly. However, recent changes to promote use in the Netherlands include:

• A tax-free commuting allowance of 0.19 euros per km per bicycle.
• An interest-free loan for the purchase of a bicycle. 
• Renting a bicycle from the company you work for.

We expect these developments to shape how companies incorporate bike benefits into their overall employee offering. As organizations face budget constraints and the growing demand for more personalized benefits, many are turning to voluntary benefits and tax-advantaged options to add value without increasing costs. While bike-related perks may have previously triggered taxable implications for employees, recent changes have made them more attractive – and we’re seeing more employers integrating these benefits into OneHub as part of a flexible, future-focused strategy.

Key considerations for rolling out global benefits in the Netherlands

When it comes to flexibility, our Dutch clients land squarely in the middle of the simple-to-complex scale. Some offer employees greater choice and flexibility through their platform, while others stick to read-only benefits.

1. A structured yet evolving market. The Netherlands has a well-defined benefits landscape, largely shaped by CLAs. These frameworks make expectations clear, but employers must also stay agile to offer competitive packages that attract the very best people.

2. Flexibility through curated choice. While not as expansive as UK or US flexible benefits schemes, Dutch employees do expect a degree of personalization. Many employers surface options through digital platforms – empowering employees without overcomplicating the benefits offering.

3. Creative benefit funding models. Employers are increasingly repackaging lump-sum bonuses and allowances into flexible benefit options, allowing employees to allocate funds toward vacation, pensions, or wellness. This creative approach helps maximize perceived value without increasing spending.

4. The role of technology in streamlining delivery. From read-only benefits to real-time selection and customization, benefits platforms help employers manage the mix of statutory, core, and voluntary benefits – while ensuring compliance and reducing administrative overhead. Integration with insurers and providers also supports smooth reporting and fund management.

If you’re considering expanding or enhancing your employee benefits strategy in the Netherlands, or anywhere else, we’d love to help. Get in touch with our global benefits experts.