Negotiating the Intangibles of Salary in the Netherlands

By: 08-10-2015

Categories:* Salary,

Negotiating your salary package in the Netherlands involves more than determining the amount of your salary. Bonuses, holidays, and other benefits are offered as a package with your salary but to negotiate a fair deal, you should be prepared; knowing what benefits to expect and how much extras you should ask for.
What you should ask for and expect, however, depends on your qualifications and work experience. For example, an entry-level position with a Master's degree typically offers a monthly base salary between €2,300 – €2,500 gross. Bonuses are given every May equivalent to 8% of your annual earnings, which is roughly equal to one month’s salary (€2,200 – €2,400 in our example).You also have the option to negotiate profit sharing bonuses, but this depends on your employer.


While your salary and bonuses make up your primary benefits, there are many other secondary benefits and intangibles you may want to negotiate depending on your circumstances. Those include relocation assistance as well as holidays, pensions, and professional development. We discuss some of these below.


Relocation Assistance: Accommodation, Spouse, Daycare, Transportation
Relocation packages vary by employer but are nonetheless an extremely important consideration for expats. If you are relocating from abroad, you should thoroughly research the Dutch property market In order to understand if you will need such an allowance, as the proportion of your current salary that goes towards rent may be higher or lower in the Netherlands. If you are moving with your family, it may be wise to also ask the company to assist your spouse in finding work as well as for day care allowances for small children.
You’ll also need to consider your commute to work, depending on where you stay. The Netherlands has an efficient railway system with a business traveller or discount plan offered by some employers. If you live in a remote area, however, a company car or driver may be a good option to negotiate.

Holidays
The legal minimum number of holidays granted per year is four times the days worked each week. Fulltime employees working five days out of the week are therefore entitled to at least 20 holidays. However, it is common in the Netherlands for a fulltime employee to be given 24 - 28 holidays per year in addition to Dutch public holidays (of which there are only few). Government and larger international employers offer more holidays as an incentive (up to 45) while others offer the possibility to “buy” extra days off.


Pensions
Most Dutch employers offer a pension (to cover living expenses after retirement), as they are notorious for having one of the world’s top pension systems. Your employer may either opt to fully payyour pension or match your contribution on some level. Pensions can be based on a fixed amount or on shares, which means you may receive more or less than your contribution depending on how well the company performs on the stock market during your career.
Professional development
It is common for employers in the Netherlands to offer at least one external day of training per year, but you may also ask the company to pay for education that’s relevant to your current or aspiring job role.


Other Intangibles:

• collective insurances or discounts on insurances
• childcare (daytime and after school)
• gym membership
• telecommuting and flex-hours
• laptop, mobile phone, tablet, or upgraded software
• company-paid Internet access at home
• groceries delivered at home
• dog walking service
• free lunch

Tips to Negotiate
Remember that your salary and benefits contract is negotiable right up until the time you sign it, so be sure to point out any special circumstances you have, like having to move or not having a car. It is best, however, to choose your battles carefully when settling benefits. Consider all the potential perks that you would like and prioritize them according to which will make the balance between your work and home life the easiest to manage. Benefits are designed to make life easier while working hard, so don’t be afraid to ask for what you deserve, but also be prepared to concede some benefits in order to secure those that are most important to you.