What is Gross vs Net Salary?
Gross vs net salary describes the gap between the contractual salary figure and the amount that actually reaches the employee's bank account. Gross salary (bruto salaris) is the headline figure quoted in the employment contract and used for all statutory calculations. Net salary (netto salaris) is the take-home amount after loonheffing (wage tax plus national insurance premiums), the employee-side Zvw healthcare contribution, and any agreed deductions such as pension contributions or lease-car co-payments.
For employers using Octagon's Employer of Record services, gross is always the reference point in the employment contract. Net is a calculated output that depends on tax credits, the 30% ruling, and the employee's individual circumstances.
How does Gross vs Net Salary work?
Dutch payroll moves from gross to net in a defined sequence. The employer starts with gross salary, adds any taxable allowances within the werkkostenregeling budget, and subtracts loonheffing using the Belastingdienst wage-tax tables. The general tax credit (algemene heffingskorting) and the employed person's credit (arbeidskorting) reduce the withholding where the employee has elected this employer as the withholding agent. The employer then deducts the employee Zvw contribution, pension contributions, and any other agreed items, leaving net salary. The payslip lists each step, and a jaaropgaaf summarises the full year.
For a worked example across salary bands, see gross to net Netherlands 2026 and EOR hidden costs.
Who does Gross vs Net Salary apply to?
The gross-to-net calculation applies to every employee on a Dutch payroll, including permanent, temporary, part-time, directors on payroll, and EOR-employed staff. It is central to offer negotiation for expats moving to the Netherlands, because headline gross figures can differ substantially from net after Dutch tax and social premiums. HR teams advising inbound employees typically produce a net salary projection alongside the contractual gross figure, incorporating the 30% ruling where applicable.
When does Gross vs Net Salary not apply?
The gross-to-net framework does not apply to genuine self-employed contractors, who invoice for services inclusive of VAT where applicable and settle their own income tax through the annual aangifte inkomstenbelasting. It does not apply to cross-border employees whose social security is allocated abroad under an A1 certificate, where only the Dutch wage tax component is withheld and the social premium calculation shifts to the home country. For expats under the 30% ruling, the net side of the calculation shifts materially, as detailed in the 2025 30% ruling update.