HR And Pay-rolling in The Netherlands

Recruiting, hiring, onboarding, training, and terminating employees are all part of HR’s responsibilities. HR also deals with the most uncomfortable parts of work, such as HR breaches, layoffs, and firing. Human resources, on the other hand, exist to provide assistance to employees. Indeed, it is a human resource.

When recruiting for new roles, HR has to be aware of the organization’s needs and make sure they are satisfied. An ad posted on a job board isn’t enough; they’ll need to do market research, contact stakeholders and manage budgets. As soon as the position is announced, further investigation is needed to ensure that the correct person is hired.HR is responsible for scheduling interviews, organising hiring initiatives, and onboarding new hires, among other responsibilities. It is their responsibility to ensure that all recruiting documentation is completed and that everything from the first day to the last day goes well.

HR is also responsible for disciplining employees. Consider an employee who consistently arrives late to work, despite many warnings from the employer.HR might intervene and look into the reason for the delay, if necessary. As a result, they may be able to give extra advantages such as counselling or assist the employee to become punctual. If they don’t want to incur the cost of dismissing and replacing an employee, they may use it as a learning opportunity for the person to advance in their career. They realise when a worker isn’t the perfect match for a firm and would do better elsewhere. A team’s cohesion and health may be determined by HR’s connection with managers and workers.


Payroll is a monster. Taxes and hours must be computed on every payday. As well as reimbursing expenses, it is also necessary to include increases and bonuses in the totals. If you think doing taxes once a year is a hassle, imagine what it must be like to work in HR and ensure that taxes are properly deducted every pay month. Additional expenses, such as holiday pay, the 13th month’s pay, health care costs, education costs and pension fund contributions may be incurred in addition to the employee’s gross salary, including travel expenses. Fortunately, there is a collective bargaining agreement for HR professionals. Collective bargaining agreements nearly usually contain sections that address the working conditions of particular industries. Here, the current collective bargaining agreement in the field is critical. A large majority of collective bargaining agreements include provisions governing the terms and conditions of employment in certain fields of work.

How to calculate labour expenses

It is estimated that the labour expenses for human resources are around 30% more than the employee’s gross compensation. After all, HR is also responsible for paying a portion of the insurance premiums and other expenses. As well as retirement benefits such as the holiday pay (typically 8% of the gross income) and the thirteenth month. There are wage taxes and premiums that an employer is required to pay.

Contributions to a pension

Every employee is covered by social insurance when it comes to pension entitlements (AOW and ANW). As an employer, you have the option of providing additional pension benefits. The employee generally gets a part of the premium. Most of the time, this is already controlled in the collective bargaining agreement or the pension fund sector, depending on the situation. Any new employee must be informed about this. Registration with the tax authorities and payment of payroll taxes

In addition, as an employer, you’ll have to deal with payroll taxes:

  • We call them payroll taxes.

  • Employer payments to social security and payroll taxes

  • Contribution to healthcare insurance based on your earnings (Zvw)

  • Insurance premiums for workers’ compensation (WW and WAO/WIA)


The payroll tax handbook has further information on this. When you register as an employer, the tax authorities will send you a copy of this document. The Tax and Customs Administration website provides access to this handbook online. Many forms and computations are involved in payroll management. Paystubs and salary statements are examples of paperwork to consider. These are all key forms for determining salaries and amounts owed to an employee or employer.

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