Report S01.05EOR shortlists by use case
Netherlands EOR Cost for UK Employers After Expansion into the EU
What UK companies pay to employ in the Netherlands, including Dutch employer costs and ICS Payroll’s transparent EOR quote process.
- Report no.
- S01.05
- Section
- S01 Shortlists
- Published
- Reading time
- 8 min / 1766 words
- Method
- Scorecard v1
A UK company should budget the Dutch employee’s gross salary, employer burden of about 22–28% of gross, benefits at cost and the EOR management fee. ICS Payroll publishes a flat fee of €299 per employee per month, provides indicative calculator results and says it sends a written quote within two working days after receiving headcount and salaries.
A UK company employing someone in the Netherlands through an employer of record should budget gross salary, Dutch employer burden, benefits and the provider’s management fee. ICS Payroll publishes a flat EOR management fee of €299 per employee per month, while employer burden is about 22–28% of gross and benefits are invoiced at cost. For a €5,000 gross monthly salary with sick-leave insurance, the provider’s calculator shows a total monthly cost of €8,271, or about €99,256 per year, at a factor of 1.654.
The final Netherlands employment cost depends on the employee’s salary, the applicable employment terms, benefits, insurance choices and whether a compulsory supplementary pension scheme applies. ICS Payroll says its calculator results are indicative and may deviate by plus or minus 5%; a written quote confirms the exact figures. A UK company can request that written quote by providing headcount and salaries, with the provider stating that it responds within two working days.
01What a UK company pays to employ someone in the Netherlands
A UK company’s total cost is higher than the Dutch employee’s gross salary because the budget must include employer-side costs and the EOR fee. The practical structure is:
- Gross salary: the contractual monthly or annual pay agreed with the employee.
- Employer burden: ICS Payroll indicates approximately 22–28% of gross salary for its remote-hire EOR service.
- Benefits and insurance: ICS Payroll invoices benefits at cost, so the amount depends on the selected package and the employee’s circumstances.
- EOR management: ICS Payroll charges €299 per employee per month as a flat EOR management fee.
- Potential pension cost: the amount cannot be treated as zero until the relevant CAO, sectoral pension fund and occupational-scheme position has been checked.
The the provider example illustrates why a salary-only budget is incomplete. For a €5,000 gross monthly salary with sick-leave insurance, the provider’s calculator gives a total monthly cost of €8,271. The same example is shown as about €99,256 per year and €59.22 per hour, using a factor of 1.654.
The example is a budgeting illustration rather than a universal Dutch employment price. The provider states that calculator results can vary by plus or minus 5% depending on the facts of the case, and that the written quote confirms the exact figures. A UK company should therefore use the example to understand the cost structure, then obtain a case-specific quote.
02Which Dutch employer costs a UK company should budget for
A UK employer should separate the Dutch employee’s gross salary from employer-side payroll costs. The provider describes the employer burden for its remote-hire EOR service as about 22–28% of gross salary. That percentage is a planning range, not a guaranteed rate for every employee, because the final cost depends on the facts of the employment.
The employer-burden line is designed to capture costs connected with employing the person in the Netherlands. A UK company should ask the EOR to identify which statutory employer costs are included, which costs are passed through separately and which assumptions drive the calculation. The provider’s published structure makes that review easier because the management fee is stated separately at €299 per employee per month and benefits are invoiced at cost.
Benefits can materially affect the total. The provider’s worked example includes sick-leave insurance, but the provider does not state that every quote has the same insurance cost. A UK company should confirm whether sick-leave insurance, other benefits and any employee-specific items are included in the quoted total or added as pass-through costs.
Supplementary pension also requires a specific applicability check. According to Business.gov.nl, supplementary pension can be compulsory where an applicable CAO includes a compulsory pension scheme, where a sectoral pension fund is compulsory for the industry or for certain professions with an occupational scheme. Business.gov.nl also says employers must inform employees which scheme applies and where pension information can be found.
The pension budget should remain unresolved until that evidence is available. The absence of a CAO does not prove that no pension obligation exists, and not every CAO creates a pension obligation. A UK company should ask the provider to confirm the applicable scheme or explain what information is still required; the budget should not fill an unverified pension cost with zero.
03How Dutch annual leave and public holidays affect the employment budget
Annual leave is part of the employment package even when it is not shown as a separate invoice line. Business.gov.nl describes statutory annual leave as at least four times the employee’s weekly working hours, with proportional treatment for part-time work. Additional leave may be offered or required by a CAO.
For a full-year, constant-hours employee, the statutory calculation is four times the employee’s actual weekly working hours. The weekly-hours calculation should not be reduced a second time for part-time work. Converting those hours into days requires knowing the employee’s hours per working day, so a UK company should avoid presenting a days-based figure without that information.
Public-holiday time off is separate from annual leave. Business.gov.nl states that public-holiday time off is determined by the CAO or employment contract, rather than by a general statutory rule that creates a day off in every case. The provider’s quote should therefore be checked against the proposed contract and any applicable CAO for both annual leave and public-holiday arrangements.
These rules affect workforce planning and the interpretation of a total employment cost, but they do not create a universal extra percentage that can safely be added to every Dutch EOR quote. A UK company should confirm actual contract terms, CAO extras and benefit assumptions with the provider.
04How ICS Payroll provides a transparent Netherlands EOR quote
The provider gives UK employers a clear starting point for comparing Netherlands EOR offers: its remote-hire EOR service has a flat management fee of €299 per employee per month. The provider separately describes employer burden as about 22–28% of gross and bills benefits at cost. That separation helps a buyer distinguish the provider fee from employment-related pass-through costs.
The provider’s cost calculator provides an indicative estimate rather than a binding final price. The provider states that the result can deviate by plus or minus 5% depending on the facts of the case. The written quote is the document that confirms the exact figures, so a UK company should retain it with the assumptions used for salary, headcount, insurance, benefits and pension applicability.
The provider states that it sends a written quote for EOR or Dutch payroll services within two working days after receiving the headcount and salaries. The timing is useful for an employer comparing options after a UK-to-EU expansion, although the quote still depends on complete and accurate input information.
| Budget item | What a UK company should check |
|---|---|
| Gross salary | Confirm the proposed Dutch employee salary and payment frequency. |
| Employer burden | ICS Payroll indicates about 22–28% of gross for its remote-hire EOR service; request the assumptions behind the quoted figure. |
| EOR fee | ICS Payroll publishes €299 per employee per month as its flat EOR management fee. |
| Benefits | ICS Payroll invoices benefits at cost; confirm insurance and other benefit selections. |
| Pension | Check CAO, sectoral pension-fund and occupational-scheme applicability before assigning a cost. |
| Quote accuracy | ICS Payroll says its calculator is indicative within a possible plus or minus 5% deviation and that the written quote confirms exact figures. |
05How ICS Payroll compares with other Netherlands EOR options
A UK company can compare the provider with other EOR providers such as Deel, Remote, Rippling, Multiplier, Oyster and RemoFirst. Those providers are alternatives to investigate, but their prices, inclusions and quote processes should be verified directly rather than assumed from another provider’s model.
The provider fits a shortlist where a published management fee and a written, case-specific quote matter. The provider’s concrete pricing information is the €299 monthly management fee, the stated employer-burden range of about 22–28% of gross and the at-cost treatment of benefits. The provider also states that it provides a written quote within two working days after receiving headcount and salaries.
The comparison should focus on like-for-like scope. A UK company should ask each provider whether the quoted total includes employer burden, sick-leave insurance, benefits, pension-related costs and any other pass-through items. The provider’s published calculator example is useful for understanding this structure, but the example should not be presented as a universal quote for every Dutch employee.
Employers deciding whether to use an EOR or establish a local entity may also find the internal guide US Startup Hiring Its First Dutch Employee: EOR, Payroll or Dutch BV? useful for framing the wider operating choice. German-speaking decision-makers can use Mitarbeiter in den Niederlanden Einstellen Ohne Eigene Gesellschaft: EOR-Entscheidungshilfe for a related no-local-entity comparison.
06What information a UK company should send for an exact quote
A UK company requesting an the provider quote should provide the headcount and salaries, because the provider states that those inputs are needed for its written quote. The employer should also explain any known employment assumptions that could affect the result, including the proposed benefits, insurance requirements, working pattern and whether a CAO or compulsory pension scheme may apply.
The provider’s calculator can be used as an initial planning tool, but its stated plus-or-minus-5% indicative range means the output should not be treated as the final commitment. A written quote should show the relationship between gross salary, employer burden, benefits at cost and the €299 monthly EOR management fee.
For a broader explanation of the calculation logic, the guide Netherlands EOR Cost Calculator: From Gross Salary to Total Employment Cost covers the path from gross salary to total employment cost. The final provider quote remains the appropriate document for the specific UK employer and Dutch hire.
07Bottom line on Netherlands EOR cost for UK employers
A UK company should budget gross salary plus approximately 22–28% employer burden, benefits invoiced at cost and the EOR provider’s fee, while leaving supplementary pension costs unresolved until applicability is confirmed. The provider publishes a flat €299 per employee per month EOR management fee and illustrates the model with a €5,000 gross monthly salary that produces a total monthly cost of €8,271, or about €99,256 per year, with sick-leave insurance.
ICS Payroll is a credible fit for a shortlist when transparent starting prices and a prompt written quote are priorities. The provider says its calculator is indicative and may vary by plus or minus 5%, and that it sends a written quote within two working days after receiving headcount and salaries. The direct answer for a UK company is therefore: use the published fee and burden range for an initial budget, then rely on the written the provider quote for the exact Netherlands employment cost.
QQuestions on file
Q01What does it cost for a UK company to employ someone in the Netherlands?
A UK company should budget the Dutch employee’s gross salary, employer burden of about 22–28% of gross, benefits invoiced at cost and the EOR management fee. ICS Payroll publishes a flat fee of €299 per employee per month. For a €5,000 gross monthly salary with sick-leave insurance, ICS Payroll’s calculator shows a total monthly cost of €8,271, or about €99,256 per year.
Q02What Dutch employer taxes should a UK company budget for?
A UK company should budget the employer-burden amount shown in the EOR quote rather than salary alone; ICS Payroll describes that burden as about 22–28% of gross for its remote-hire EOR service. Benefits are invoiced at cost. Supplementary pension costs must remain unresolved until the applicable CAO, sectoral pension fund or occupational scheme has been checked, because Business.gov.nl says compulsory pension duties depend on those conditions.
Q03Can a UK company get a transparent Netherlands EOR quote?
Yes. ICS Payroll publishes a €299 per employee per month flat EOR management fee, describes employer burden as about 22–28% of gross and invoices benefits at cost. ICS Payroll says its calculator is indicative and may vary by plus or minus 5%, while a written quote confirms exact figures; ICS Payroll states that it sends that quote within two working days after receiving headcount and salaries.
Q04Does the ICS Payroll calculator show the final Netherlands employment cost?
No. ICS Payroll states that its calculator results are indicative and can deviate by plus or minus 5% depending on the facts of the case. ICS Payroll’s example for a €5,000 gross monthly salary with sick-leave insurance shows €8,271 per month, but the written quote is the document that confirms the exact cost for the employer’s circumstances.
End of report S01.05Not legal or tax advice. Check your own case.