PEO Services in the Netherlands

A co-employment model for companies that want to share the employer relationship in the Netherlands rather than hand it over entirely. We help you work out whether PEO or EOR genuinely fits, and place you with the right vetted partner.

  • Independent advice
  • Vetted partners
  • Honest Positioning

What a PEO does in the Netherlands

A Professional Employer Organisation works on a co-employment model. You and the PEO partner share the legal employer responsibilities for your Dutch staff: you keep direction and day-to-day control, while the partner administers payroll, tax, social security, and HR compliance under a shared arrangement.

The distinction from EOR matters. With an EOR, the partner is the sole legal employer. With a PEO, the employer relationship is shared. In the Netherlands and the wider EU, true co-employment is less common than EOR, and the right choice depends on your structure. That is exactly what we help you work out.

01

Shared employer role

You and the PEO partner share the legal employer responsibilities. You keep direction and control; they handle payroll, loonheffing, social security, and HR administration.

02

More direct control

PEO suits companies that want to retain more direct control of the employment relationship than a full EOR arrangement allows. In the Netherlands, EOR is more common.

03

Honest recommendation

For most businesses hiring in the Netherlands, EOR is simpler. We will work with you and advise if the PEO model fits your structure or if EOR would suit you better.

How PEO works in the Netherlands, step by step

From assessing the fit to a compliant co-employment arrangement.

01 — Assess the fit

We map your structure, headcount, and how much control you want to keep, and tell you honestly whether PEO or EOR serves you better. No product push.

02 — Set up co-employment

If PEO fits, we place you with a vetted Dutch partner and structure the shared employer arrangement correctly.

03 — Onboard your people

Compliant Dutch employment terms, with CAO classification and the administrative employer functions handled by the partner.

04 — Payroll & compliance

Loonheffing, the 8% holiday allowance, social security, and filings handled monthly, while you keep day-to-day direction.

What PEO in the Netherlands costs

As with EOR, two parts: the statutory cost of employment, and the partner service fee.

Employer social security

Roughly 16.6 to 23% on top of gross salary, varying by sector and contract, administered under the shared employer arrangement; the employee’s own 27.65% volksverzekeringen contribution is withheld from salary, not billed to you.

Holiday allowance

A mandatory 8% of gross, tracked separately and usually paid in May.

Minimum wage (2026)

€14.99 per hour from 1 July 2026 (age 21+), reviewed twice yearly.

PEO partner fee

A service fee for the co-employment administration. We benchmark across our vetted network, typically 15 to 25% below going direct.

Income tax (employee)

Box 1 income tax runs 35.75% to EUR 38,883, 37.56% to EUR 78,426, and 49.50% above, withheld at source. Borne by the employee, not added to your cost.

Why arrange it through Bradford Jacobs

Why companies arrange Dutch PEO through us rather than going direct to a single provider.

We tell you if PEO fits your needs

We are independent: we assess what you actually need, place you with the right vetted partner, secure pricing you will not get going direct, and stay on your side to escalate or renegotiate. You get advice, not a product pitch.

  • Independent advice
  • Vetted partners only
  • On your side at renewal

Pricing you can’t get direct

Dutch employer costs vary more than most companies expect: WW, WIA, and Whk premiums move with sector and claims history, not a single published rate. The partner’s own service fee is the one part you can negotiate, and we benchmark it across our vetted network for rates typically 15 to 25% below going direct.

  • 15-25% below direct
  • Network benchmarking
  • Renegotiated for you

Straight to the top when it matters

When something needs resolving, and in global employment it sometimes does, you come to us. We escalate directly, past the helpdesk, to people who can actually move it.

  • Direct escalation
  • No support queues
  • Named account contact

Two decades of placements

Two decades placing and managing employment arrangements across Europe. Enforcement against contractor misclassification under the DBA has resumed, which is exactly the risk a compliant co-employment or EOR structure avoids here; we help you land on the right one, not just the appealing one.

  • Co-employment expertise
  • Honest fit advice
  • Right structure

We flex as your structure changes

PEO, EOR, and your own entity sit on a spectrum, and the right point shifts as you grow. We advise on the path and manage the moves, EOR to PEO, or either to your own BV, as your Dutch presence develops.

  • EOR, PEO or entity
  • Transitions managed
  • Right fit as you grow

Dutch employer obligations, split sensibly

Whichever model you use, the underlying Dutch rules are the same, and they are demanding. Under a PEO arrangement, the administrative employer functions are handled for you.

Working time, leave & contracts

CAO compliance where a sector collective agreement applies whether or not you signed it. The two-year sick-pay and reintegration obligation, one of the heaviest in Europe. Loonheffing, the 8% holiday allowance, and correct social security.

Statutory protections & exits

Statutory notice, probation, and the strong protections Dutch employees carry, all handled under the shared arrangement. The value is the same as with EOR: the Dutch complexity is handled by people who do it daily. The difference is simply how much of the employer role you keep.

What a PEO arrangement covers

The co-employment administration covers all of this, under one transparent fee.

Compliant contract

A compliant Dutch employment contract with CAO classification, issued and maintained for you.

Payroll & filings

Monthly payroll run, with loonheffing and the 8% holiday allowance calculated, withheld, and filed each month.

Statutory benefits

All statutory benefits administered: annual leave, sick pay, parental leave, notice and severance.

Compliance & support

Ongoing HR compliance and a single point of contact, for the life of the engagement.

Your questions answered

Straight answers on how PEO co-employment works in the Netherlands.

What is the difference between PEO and EOR in the Netherlands?

With an EOR, the partner is the sole legal employer of your Dutch staff. With a PEO, you and the partner share the employer relationship, you keep more direct control, they handle the administration. In the Netherlands, EOR is more common; PEO suits specific co-employment structures.

For most companies, EOR is simpler and faster, especially with no Dutch entity. PEO fits when you want to share rather than outsource the employer role, or have a structure that calls for it. We work with you to determine your business needs and recommend the best solution.

It depends on the structure. Some co-employment arrangements assume or work alongside an entity. If you have no entity and want none, EOR is usually the cleaner route. We will confirm which applies to you.

The administrative employer functions, payroll, loonheffing, holiday allowance, social security, CAO compliance, and filings, are handled by the partner. We make sure the arrangement is structured so responsibilities are clear and Dutch law is met.

The statutory employer cost (roughly 16.6 to 23% social security plus the 8% holiday allowance) plus a partner service fee for the co-employment administration; the employee’s own volksverzekeringen contribution, at 27.65%, is larger still and is withheld from salary, not billed to you. We benchmark across our network for pricing typically 15 to 25% below going direct.

Yes. These models sit on a spectrum and the right one changes as you grow. We advise on the path and manage transitions, EOR to PEO, or either to your own BV, as your Dutch presence develops.

Not sure whether PEO or EOR is right for the Netherlands?

Tell us your structure and headcount and we will give you an honest recommendation, usually within a day, plus pricing you will not get direct. No product push, just the right fit.

Tax and labour data verified June 2026 (Belastingdienst, PwC, OECD). Figures change; we confirm the current position when we scope your hire.