About
ERI DisclaimerNetherlands - Compensation & Benefit Legislation
CAPITAL
Amsterdam
CLIMATE
Temperate, marine. Cool summers and mild winters.
LANGUAGES
Dutch (official), Frisian, German, French, English
LEGAL SYSTEM
Civil law system incorporating French penal theory. The constitution does not permit judicial review of acts of the States General. The Netherlands accepts compulsory ICJ jurisdiction, with reservations.
CURRENCY
Euros (1 USD = 1.07090 EUR as of June 1, 2002)
NETHERLANDS - COST-OF-LIVING
ERI's Relocation Assessor is a recommended source for cost-of-living data.
NETHERLANDS - EMBASSY/CONSULATES
U.S. Embassy at The Hague
Lange Voorhout 102
2514 EJ, Den Hague
PSC 71, Box 1000
APO AE 09715
Den Hague, Netherlands
Telephone: [31] (70) 310-9209
Fax: [31] (70) 361-4688
U.S. Consulate General
American Services
Museuplein 19
1071 DJ Amsterdam
Amsterdam, Netherlands
Telephone: [31] (020) 575-5309
Fax: [31] (020) 575-5310
Embassy of the Netherlands at Washington D.C.
4200 Linnean Avenue N.W.
Washington D.C. 20008
Telephone: (202) 244-5300
Fax: (202) 362-3430
http://www.netherlands-embassy.org/
NETHERLANDS - HOLIDAYS
New Year's Day
Good Friday
Easter Monday
Queen's Day - Koninginnedag (April 30th)
Liberation Day (May 5th)
Ascension Day
Whit Monday
Christmas
NETHERLANDS – LEAVE
Vacation: Typically, 5 weeks each year.
Maternity Leave: 16 weeks – 100% of pay (paid for by social security).
NETHERLANDS - MINIMUM AGE
The minimum age for employment is 16 years. Those in school at the age of 16 may not work more than 8 hours per week. The law prohibits persons under the age of 18 from working overtime, at night, or in areas dangerous to their physical or mental well being. These laws are enforced effectively by the tripartite Labor Commission, which monitors hiring practices and conducts inspections.
(Section 6.d. Status of Child Labor Practices and Minimum Age for Employment, Netherlands - Report of Human Rights Practices, 2001, U.S. Department of State.)
NETHERLANDS - MINIMUM REMUNERATION
The gross minimum wage is approximately €1,180 per month. For workers earning the minimum wage, employers pay €2,723 a year in premiums for social security benefits, which includes medical insurance.
The minimum wage for adults is established by law and may be adjusted every 6 months to reflect changes in the cost-of-living index. Over the last few years, the statutory minimum wage has been pegged to the average wage in collective labor contracts. The legislated minimum wage and social benefits available to minimum wage earners provide an adequate standard of living for a worker and family. Only 3 percent of workers earn the minimum wage because collective bargaining agreements, which normally are extended across a sector, usually set a minimum wage well above the legislated minimum.
A reduced minimum wage applies to young persons under the age of 23--one of the groups with the highest rate of unemployment--and is intended to provide incentives for their employment. This wage ranges from 34.5 percent of the adult minimum wage for workers 16 years of age to 85 percent for those 22 years of age.
(Section 6.e. Acceptable Conditions of Work, Netherlands - Report of Human Rights Practices, 2001, U.S. Department of State.)
NETHERLANDS - REMUNERATION
ERI's Geographic and Salary Assessors are recommended sources for international remuneration covering 189 countries.
NETHERLANDS - REPORT OF HUMAN RIGHTS PRACTICES (2000, U.S. DEPARTMENT OF STATE)
Section 6 Worker Rights
a. The Right of Association
Workers are entitled to form or join unions of their own choosing without prior government authorization, and workers exercise this right. Membership in labor unions is open to all workers including armed forces personnel, the police, and civil service employees. Unions are free of control by the Government and political parties. Union members may and do participate in political activities. Approximately 28 percent of the work force is unionized; however, union-negotiated collective bargaining agreements usually are extended to cover approximately three-quarters of the work force. The white-collar unions' membership is the fastest growing. There are three trade union federations. The largest is the FNV Trade Union Federation (FNV), with approximately 1.22 million members, followed by the Christian Trade Union Federation (CNV), with approximately 354,000 members, and the MHP Trade Union Federation for staff and managerial personnel, with approximately 214,000 members. Unions are free of government and political party control.
All workers have the right to strike, except for most civil servants who have other institutionalized means of protection and redress. Industrial relations are very harmonious, and strikes are infrequent. In 2000 some 9.4 out of 1,000 labor days were lost, mostly over union demands for higher pay and a 36-hour workweek. By law retribution against striking workers is prohibited, and the Government generally respects this prohibition in practice.
Unions are free to affiliate with national and international trade union federations. The three union federations are active internationally, without restriction.
b. The Right to Organize and Bargain Collectively
The Constitution provides for the right to organize and specific laws guarantee the right to collective bargaining; workers exercise this right. Collective bargaining agreements are negotiated in the framework of the "Social Partnership" developed between trade unions and private employers. Representatives of the main union federations, employers' organizations, and the Government meet each year to discuss labor issues, including wage levels and their relation to the state of the economy and to international competition. The discussions lead to a central accord with social as well as economic goals for the coming year. Under this umbrella agreement, unions and employers in various sectors negotiate sectoral agreements, which the Government usually extends to all companies in the sector.
Antiunion discrimination is prohibited, and there were no reports that it occurred. Union federations and employers' organizations are represented, along with independent experts, on the Social and Economic Council. The council is the major advisory board for the Government on policies and legislation regarding national and international social and economic matters.
There are no export processing zones.
c. Prohibition of Forced or Compulsory Labor
The Constitution prohibits forced or compulsory labor; however, trafficking in women for the purpose of prostitution was a problem (see Section 6.f.).
The Constitution prohibits forced or compulsory labor by children; however, trafficking in girls for the purpose of prostitution was a problem (see Section 6.f.).
d. Status of Child Labor Practices and Minimum Age for Employment
The minimum age for employment is 16 years. Those in school at the age of 16 may not work more than 8 hours per week. The law prohibits persons under the age of 18 from working overtime, at night, or in areas dangerous to their physical or mental well being. These laws are enforced effectively by the tripartite Labor Commission, which monitors hiring practices and conducts inspections.
Holiday work and after school jobs are subject to very strict rules, which are set in the Work Time Act, the Child Labor Regulation (for children under age 16), and the Working Conditions Decree. Observance of the rules is overseen by the Social Ministry's Labor Inspection Office. Although child labor is banned, an increasing number of children work for pay during holidays. The parents of such children are to be reported officially by labor inspectors, and the Public Prosecutor may decide to prosecute the parents for violating the ban on child labor. In 2000 the labor inspections showed that one-third of companies violated the regulations applying to holiday work, including by employing children under the age of 13.
The Constitution prohibits forced or compulsory labor by children; however, trafficking in girls for the purpose of prostitution was a problem (see Section 6.f.).
e. Acceptable Conditions of Work
The minimum wage for adults is established by law and may be adjusted every 6 months to reflect changes in the cost-of-living index. Over the last few years, the statutory minimum wage has been pegged to the average wage in collective labor contracts. The gross minimum wage is approximately €1,180 per month. For workers earning the minimum wage, employers pay €2,723 a year in premiums for social security benefits, which includes medical insurance. The legislated minimum wage and social benefits available to minimum wage earners provide an adequate standard of living for a worker and family. Only 3 percent of workers earn the minimum wage because collective bargaining agreements, which normally are extended across a sector, usually set a minimum wage well above the legislated minimum. The Government, unions, and employers have taken measures to increase the number of minimum wage jobs and to decrease employers' social payments in order to lower the cost of hiring new workers and to create more jobs, especially for the long-term unemployed.
A reduced minimum wage applies to young persons under the age of 23--one of the groups with the highest rate of unemployment--and is intended to provide incentives for their employment. This wage ranges from 34.5 percent of the adult minimum wage for workers 16 years of age to 85 percent for those 22 years of age.
Although the law sets a 40-hour workweek, the average workweek for those with full-time jobs is 37 1/2 hours. Anyone working more than 4 1/2 hours per day is entitled to a 30-minute break. This workweek is the result of agreements reached in collective bargaining on shorter workweeks, often in conjunction with more flexible working hours. This combination makes it possible to adapt shorter working hours to the specific situation in a particular business or branch of industry. The law prohibits employers from treating part-time workers differently from those in full-time jobs.
Working conditions, including comprehensive occupational safety and health standards set by law and regulations, are monitored actively and enforced effectively by the tripartite Labor Commission. The Ministry of Labor and Social Affairs also monitors standards through its Labor Inspectorate. Workers may remove themselves from dangerous work conditions without jeopardizing their continued employment.
f. Trafficking in Persons
The law specifically criminalizes alien smuggling and trafficking in persons; however, women and girls were trafficked into the country for prostitution. The country is a major destination for trafficked women from countries around the world, including Colombia, the Dominican Republic, Hungary, Lithuania, Poland, Slovenia, Albania, Romania, and the Federal Republic of Yugoslavia, China, the Philippines, Thailand, and Africa (Nigeria.) There are no reliable figures available; however, the Foundation Against Trafficking in Women estimates that each year approximately 3,000 women and girls are trafficked into the country for the purpose of prostitution.
The maximum sentence for trafficking in persons is 6 years. In cases involving minors, severe physical violence, or organized trafficking, the maximum sentence is 10 years. The maximum sentence for alien smuggling is 8 years. With the introduction of the new prostitution law, which prohibits the employment of prostitutes in the country illegally, the Government seeks to intensify the fight against criminal organizations trafficking in women and children. The Government actively investigates and prosecutes traffickers. In 2000 authorities prosecuted 68 trafficking cases of which 34 resulted in convictions.
NETHERLANDS - STANDARD WORKWEEK
Although the law sets a 40-hour workweek, the average workweek for those with full-time jobs is 37 1/2 hours. Anyone working more than 4 1/2 hours per day is entitled to a 30-minute break. This workweek is the result of agreements reached in collective bargaining on shorter workweeks, often in conjunction with more flexible working hours. This combination makes it possible to adapt shorter working hours to the specific situation in a particular business or branch of industry. The law prohibits employers from treating part-time workers differently from those in full-time jobs.
(Section 6.e. Acceptable Conditions of Work, Netherlands - Report of Human Rights Practices, 2001, U.S. Department of State.)
NETHERLANDS - SOCIAL SECURITY
Social Security Office of International Programs:
http://www.ssa.gov/SSA_Home.html
NETHERLANDS - TOTALIZATION AGREEMENT WITH U.S.
Effective Date of Agreement: November 1, 1990.
Coverage and Social Security Taxes:
For employees sent by a Dutch employer to work in the U.S. for five years or less, taxes and coverage fall to the Netherlands. If the employee is sent to work in the U.S. for more than five years, was hired in the U.S., or is a U.S. citizen, taxes and coverage fall to the U.S.
Certificate of Coverage Request:
To establish an employee's exemption from coverage under the U.S. Social Security system, the employer must request a certificate of coverage from the Netherlands at this address:
Sociale Verzekeringstaad
Postbus 100
2700 A C Zoetermeer
THE NETHERLANDS
The same information required for a certificate of coverage from the U.S. is needed to get a certificate of coverage from the Netherlands except that the employee's Dutch Social Security number should be shown rather than the U.S. number.
Minimum Credits Needed:
A person can qualify for a Dutch old-age pension with as little as one year of Dutch coverage; therefore, work credits under the U.S. system will not be counted when determining eligibility for the old-age pension. There is no minimum coverage requirement for Dutch disability or survivors' pensions, however, the worker must have been covered under the Dutch system at the time the disability began or at the time of death. Under the agreement, people who meet certain conditions can get an increased Dutch old-age pension, or use their U.S. Social Security credits to help qualify for a Dutch disability or survivors pension.
Summary of Social Security Benefits: Full retirement or old-age benefits are payable at age 65. The two types of disability benefits are: General Widows' and Orphans' Act benefit payable between age 18 and 65 (25 percent disabled); and, Disablement Insurance Act benefit payable under age 65 (15 percent disabled). The Netherlands makes no provision for family benefits to dependents of retired or disabled workers. Survivor benefits are payable to a widow(er) between ages 40-65, or at any age if disabled or caring for a child under 18, and to children if both parents are deceased and child is under 16, under 18 if disabled. A lump-sum death benefit is payable to survivors.
Additional Information: For specific information about the Netherlands' Social Security program, visit a local Dutch Social Security office in the Netherlands, or write to:
Sociale Verzekeringsbank
Postbus 7105
1007 JC Amsterdam
THE NETHERLANDS