How much can you earn in the Netherlands by employing through an agency?
author: Maciej Wawrzyniak26 June 2024
The Netherlands is one of the more popular labour migration destinations for Poles. Many people choose to be employed by employment agencies, which help with finding employment and dealing with the formalities. However, before you decide to leave, it is worth finding out how much you can earn by employing through an agency in the Netherlands and what to pay attention to.
Earnings in the Netherlands through agencies - minimum hourly wages
Minimum hourly wages in the Netherlands are set by the government and depend on the age of the employee. As of 1 January 2024, the statutory minimum wage in the Netherlands is €13.27 gross per hour. For those working full-time (160 hours per month), this means a salary of approximately €2,123.20 gross per month. This is a significant improvement compared to previous years in order to bring wages in line with the rising cost of living and ensure decent working conditions.
For younger workers, rates are proportionally lower, meaning that 18-20 year olds earn less than their older counterparts. For example, an 18-year-old can earn around 70% of the adult minimum wage, or around €9.29 gross per hour. This differentiation is designed to take into account the lesser work experience and life demands of younger workers.
Employment agencies must adhere to these minimum rates, meaning that when working through an agency, you cannot earn less than the regulations stipulate. This is an important aspect of worker protection, ensuring that even those who go through an agency are guaranteed basic financial conditions.
In addition, employers and agencies often offer various allowances and bonuses that can affect the final salary. These can include allowances for night work, weekend work, overtime, as well as productivity bonuses. As a result, although the minimum hourly rate is a starting point, the actual salary can be significantly higher depending on the specific work and conditions offered by the agency.
It is also worth remembering that employers and agencies must provide workers with all due benefits, such as health insurance, paid holidays and other forms of social security. As a result, employment through an agency can be stable and secure, with benefits comparable to direct employment with an employer.
Allowances and overtime versus agency earnings - how much can you earn?
When working through an agency, it is worth looking at the possibility of earning extra money through overtime and bonuses. In the Netherlands, overtime is usually paid at a higher rate, which can be 125% or even 150% of the standard hourly rate. This means that if the standard rate is €13.27 per hour, overtime can be paid at between €16.59 and €19.91 per hour, significantly increasing the total wage.
In addition, some jobs offer bonuses for working weekends, nights, holidays and other specific conditions. For example, night work is often rewarded with an additional 25 per cent to 50 per cent of the standard rate, meaning that the hourly rate can be between €16.59 and €19.91. Weekend work can also be rewarded with higher rates, often up to 150% of the standard rate, which translates into €19.91 per hour.
Some agencies and employers also offer various types of bonuses and premiums, such as bonuses for productivity, for reaching certain production targets or for longer length of service. These bonuses can be a significant part of the salary, especially in industries where the work intensity is high and the demands are greater.
In addition, in many sectors there are additional benefits, such as coverage of transport costs to and from the workplace and reimbursement of accommodation costs. Thus, although the basic hourly rate is a starting point, the actual salary can be significantly higher when all these additional elements are taken into account.
Will pay through an agency in the Netherlands be lower?
The question often arises whether the salary offered by employment agencies is lower than direct employment with an employer. The difference in pay may be due to several factors.
Firstly, agency commissions - agencies charge commissions for finding work and administrative services, which can affect the net salary an employee receives. While these commissions are standard practice, they can mean that part of the earnings go to the agency instead of directly into the worker's pocket.
Secondly, the advantages and disadvantages of agency employment - although the hourly rates offered by agencies may be slightly lower than those offered by direct employers, employment agencies often compensate for this with additional benefits. Examples of such benefits include the provision of accommodation, which eliminates the need to find and pay for housing yourself. In addition, agencies often organise transport to and from the workplace, which not only saves time but also money on commuting.
In addition, employment agencies offer support in dealing with formalities such as registering with local authorities, opening bank accounts or obtaining the necessary permits. For people who are new to the Netherlands, this is a huge convenience that allows them to focus on work instead of bureaucracy.
It is also worth mentioning the flexibility offered by employment agencies. It is often possible to find work for shorter periods, which is ideal for those looking for seasonal employment or who want to combine work with other commitments. Agencies may also offer the possibility to change jobs quickly, which is beneficial for people who want to gain a variety of work experience.
Using an employment agency in the Netherlands - additional benefits
Employment through an employment agency in the Netherlands can come with many additional benefits that are not available with direct employment. One of the most important of these is accommodation. Agencies often offer cheap or even free accommodation that is close to the workplace. This allows employees to save a significant amount of money that would otherwise be spent on renting a flat or room. The accommodation provided by agencies is usually well organised, eliminating the stress of finding a suitable place to live in a foreign country.
Another significant benefit is transport. Employment agencies often organise free or partially paid transport to and from work. This is a huge convenience, especially for those who are unfamiliar with the local transport infrastructure or do not have access to their own means of transport. This allows employees to focus on their professional duties without having to worry about the daily commute and also saves on fuel costs or public transport tickets.
Administrative support is another key element that makes using an employment agency attractive. Agencies offer assistance with all work-related formalities, such as registering with the authorities, opening a bank account, obtaining a BSN (Burgerservicenummer) number, which is necessary for legal employment in the Netherlands, and help with understanding and completing social and health insurance documents. This kind of support is particularly valuable for people who are not fluent in Dutch or who are new to administrative matters.
In addition, employment agencies often offer language support by organising Dutch language courses for their employees, which can significantly facilitate daily functioning and integration into the local community. Some agencies also provide vocational training to improve qualifications and learn new skills, which in turn can lead to better job prospects and higher wages in the future. All this saves a lot of money and compensates for the often lower rates offered by agencies.
A good employment agency in the Netherlands - what can you save on?
Choosing the right employment agency can make a significant difference to your wages and your living comfort in the Netherlands. Therefore, it is worth paying attention to a few key aspects that will help you save money and avoid unpleasant surprises.
First and foremost, cost transparency is extremely important. Make sure the agency clearly communicates any costs related to accommodation, transport or other services. Some agencies may charge extra for accommodation or transport, which can significantly reduce your net salary. Check whether these costs are competitive and whether there are hidden charges that may arise once you have signed the contract. Being transparent about these issues allows you to budget better and avoid unpleasant surprises.
Feedback fromother employees is another important aspect. Look for reviews of the agency online or ask friends who have used its services. Platforms such as Glassdoor or Indeed can provide valuable information from former and current employees. These reviews can reveal important information about working conditions, the reliability of the agency and its approach to employees. Good reviews can indicate an agency's integrity and professionalism, while negative reviews can be a warning sign.
Equally important are the working conditions and contracts offered by the agency. Check that the agency offers contracts on favourable terms and that it complies with local labour laws. Make sure the contract clearly sets out your responsibilities, pay, working hours and conditions regarding overtime and holidays. It is also important that the agency adheres to minimum hourly rates and provides all the benefits you are entitled to, such as health and social security. A good contract can protect you from unfair practices and ensure stable employment conditions.
In conclusion, earning wages in the Netherlands through an agency can be attractive, but it is worth reading the offer and terms of employment carefully. This will help you avoid unpleasant surprises and allow you to fully enjoy the benefits of working abroad.