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Payroll Netherlands

Dutch payroll processing: wage tax, social security contributions, holiday allowance (8%), year-end statements, and employee pay slips.

Dutch payroll processing

Dutch payroll is governed by a layered system of wage tax tables, social security contribution rates, and sector-specific requirements that change annually. Employers must file monthly wage tax returns (loonaangifte) with the Belastingdienst, calculate and reserve the mandatory 8% holiday allowance (vakantiegeld), and administer pension contributions in line with the applicable fund or scheme. Errors in any of these areas result in corrections, penalties, and employee dissatisfaction.

Octagon processes Dutch payroll for companies ranging from single-employee operations to organisations with over 100 staff. We handle gross-to-net calculations, wage tax filings, social security administration (WW, WIA, ZW, WAO), holiday allowance accrual and payment, and year-end income statements (jaaropgave). We deliver every pay slip in a format that meets Dutch statutory requirements, and our payroll calendar keeps every deadline on track without exception.

Payroll deliverables

01

Monthly payroll processing

Gross-to-net calculations, wage tax table application, and social security contribution administration for every pay period.

02

Tax authority filings

Timely loonaangifte submissions to the Belastingdienst, including corrections, annual reconciliations, and employer levy calculations.

03

Holiday allowance management

Accrual tracking and annual payment of the statutory 8% vakantiegeld, with pro-rata calculations for mid-year starters and leavers.

04

Employee pay slips

Dutch-compliant pay slips delivered digitally each pay period, with clear breakdowns of gross pay, deductions, and net payment.

Need Employer of Record and payroll?

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