This article was written by David Gibbons, Commercial Director at Adams Multilingual Recruitment
The most common mistake we see when an international company hires its first executives in the Netherlands is treating the Dutch offer as “base salary plus a few standard benefits”.
Dutch candidates at this level evaluate the whole package, and the contract needs to reflect local employment law rather than a lightly edited US, UK or Asian template.
Below are the points that matter most in practice, based on our experience with clients setting up or scaling their Dutch operations.
Prepare the whole employment package, not just the headline number
A Netherlands-based executive will normally want to understand:
- Gross annual base salary — and whether the quoted figure already includes holiday allowance.
- Holiday allowance (vakantiegeld) — generally at least 8% of qualifying wages, usually paid separately from the monthly salary. It is not simply a discretionary bonus.
- Annual bonus — target, maximum, performance measures, and whether it is contractual or discretionary.
- Long-term incentives — shares, options, RSUs or a cash LTIP, particularly where the international parent offers these.
- Pension — employer contribution, employee contribution and the quality of the scheme.
- Company car or car allowance, travel allowance and other allowances.
- Holiday entitlement and any additional leave.
- Severance and notice arrangements.
A €150,000 Dutch base salary is not the equivalent of a €150,000 UK or US package. Pension, benefits and tax treatment can considerably change the candidate’s perception of the offer.
Pension is a major part of the package
International companies sometimes focus heavily on salary and bonus while treating pension as an administrative detail. But for senior hires in the Netherlands, the pension contribution should be a specific part of the compensation comparison. A Dutch executive will often ask: “What is the employer pension contribution, and what will I personally have to contribute?”
Pension arrangements can vary considerably between employers. Some companies have a strong pension scheme, while others may have a more limited arrangement. The employer should explain the actual contribution structure, rather than simply mentioning “pension included”.
Holiday allowance and holiday days are two different things
This is a common source of confusion for international headquarters.
- Holiday allowance: generally at least 8% of qualifying wages.
- Holiday entitlement: paid time off, separate from the holiday allowance.
The statutory minimum is four times the employee’s weekly working hours per year, so 20 days for someone working five days a week. Many Dutch employers offer more than this, so the actual company policy matters. The average tends to be 25 days in the Netherlands but there are many examples of companies offering 30 days or more.
For an executive offer, you should explicitly state base salary, holiday allowance, total fixed gross salary, bonus, pension contribution and holiday entitlement.
That removes the ambiguity of a single “annual package” figure.
Dutch employment contracts are not generally “at-will”
This is probably the most important legal difference for many international executives.
The Netherlands has fixed-term and indefinite-term employment contracts. An employer cannot simply assume that it can terminate an executive whenever it wishes because the contract says “employment at will” or because the person is a senior employee. For an indefinite contract — which is what most executives will expect — the following apply:
- The employer normally needs a legally recognised ground for dismissal.
- The correct dismissal route must be followed.
- Statutory notice periods apply.
- A settlement agreement may be used, but it is not the same as an automatic contractual right to terminate without process.
For international headquarters: do not simply import a US-style employment agreement and assume it will work in the Netherlands.
Notice periods shape your hiring timeline
The statutory employer notice period is generally at least one month, increasing with length of service up to four months. An employee’s statutory notice period is generally one month, unless a different period is agreed in writing.
For senior executives, however, the actual contract may contain longer notice periods. A candidate may well be interested in the role but be tied to six months’ notice, and that can materially affect the hiring timeline.
Our advice: establish the candidate’s notice period early in the search, and make sure management understands that Dutch senior candidates may have longer contractual notice arrangements.
Probation periods are regulated
A probation period (proeftijd) must be agreed in writing and is subject to statutory limits. For example, contracts of six months or less cannot contain a probation period, while longer contracts may allow one or two months depending on the contract type.
This is another area where an international company should not simply copy its global template.
Bonus schemes need to be much clearer
At executive level, a bonus described only by a ceiling — “up to 30%” — invites scepticism.
The hiring company must define:
- Target bonus percentage
- Maximum bonus
- Performance measures
- Individual versus company performance
- Whether the bonus is discretionary
- What happens if the executive joins part-way through the year
- What happens if the executive leaves before the payment date
- Whether there is any guaranteed first-year bonus
Dutch candidates tend to ask what they are realistically likely to earn, not what the theoretical maximum is.
The 30% ruling can be important for international hires — but do not promise it
For qualifying employees recruited from abroad, the Dutch 30% ruling allows part of the salary to be paid as a tax-free allowance. This can make a material difference to net pay, and international candidates often ask about it directly. However, eligibility depends on the applicable rules and the individual’s circumstances.
The important point for a client is: do not build the offer around the assumption that the candidate will automatically receive the ruling. This should be checked separately with a Dutch tax adviser.
Check whether a CAO applies
Some employers are covered by a Collective Labour Agreement (CAO), which can set rules on pay, holidays, notice periods and other employment conditions. The contract has to comply with applicable law and any relevant CAO.
For senior executives, the CAO may or may not apply depending on the employer and the role, so this should be checked rather than assumed.
Be very clear about decision-making and reporting lines
This is not just a legal issue — it is a candidate attraction issue.
A Dutch executive joining a US or Asia-headquartered business will want clarity on:
- Who actually makes the decisions, and who does the role report to?
- How much autonomy does the Dutch or European leadership team have?
- Is the role genuinely empowered, or is it execution of decisions made elsewhere?
- What happens if headquarters changes strategy?
- Is the bonus measured on European or global performance?
- How are expectations agreed across cultures and time zones?
A strong package does not compensate for a role that looks like it has limited authority.
Our overall view
For executive recruitment in the Netherlands, the most important thing is to make the package transparent, locally compliant and genuinely competitive. Candidates will often be willing to accept a different salary structure if the overall package and the role are attractive — but they will be much less comfortable with ambiguity.
If you are planning to hire for an executive or leadership role in the Netherlands and would like to talk it through before you begin, you can reach out to David Gibbons at davidgibbons@adamsrecruitment.com
