If you want to employ a foreign employee, it is wise to do your homework first. If the employee possesses a EU-passport or origins from the EEA (European Economic Area), you do not have to apply for a work permit. This also applies for employees coming from Bulgaria and Romania. However, if you are to employ an employee from outside the EEA or from Croatia, the employee needs to have a work permit. If the employee qualifies as a highly skilled migrant (or knowledge migrant) you can apply for the Highly Skilled Migrant Scheme or Knowledge Migrant Ruling.
Penalty for hiring an employee without a work permit
When hiring an employee without a work permit, you can expect to receive an administrative fine of €8,000 per illegally employed alien on the first violation. You also have to pay wage tax over the worked hours by this employee against the highest rate, called the “anonymous rate”.
Disadvantages of the Temporary Work Permit
- The employer and/or the end-client have the obligation to demonstrate they have actively been recruiting candidates for the position during a minimum period of 6 weeks and that none of the candidates fulfil the job requirements;
- The costs for recruitment and selection within Europe quickly add up to an amount of €1,500 to €2,000;
- Only after the employer has demonstrated the foregoing, he is allowed to actively recruit a candidate from outside of Europe;
- Once the candidate (from outside of Europe) has been found, the application for the Temporary Work Permit will, on average, take another 6 weeks;
- All the foregoing is to be increased with any duties for the application for the Temporary Work Permit;
- From an overall point of view, this comes down to a duration of 12 weeks and a minimal total cost of €1,500 to €2,000.
Requirements for the Knowledge Migrant Ruling (Highly Skilled Migrants Scheme) (2020)
The procedure for the application for the Knowledge Migrant Ruling is done via the IND (Immigration and Naturalization Service). The following requirements apply:
- The highly skilled migrant (30 years or older) earns a minimum gross salary of €4,5612 per month, excl. 8% holiday allowance ;
- The highly skilled migrant (younger than 30 years) earns a minimum gross salary of €3,381 per month, excl. 8% holiday allowance ;
- The employer is a company registered in the Netherlands;
- The employer is registered as recognized sponsor with the IND (Immigration and Naturalization Service);
- The partner of the highly skilled migrant must apply for a residence permit as “Partner of Highly Skilled Migrant”.
If a student graduates from a study in the Netherlands and qualifies as a highly skilled migrant, the student can apply for a residence permit for a so-called “search year”. After the search year, he/she must earn a minimum gross salary is €2,423 per month, excl. holiday allowance .
Solutions for foreign employers
AAme is registered with the IND (Immigration and Naturalization Services) as recognized sponsor for the Highly Skilled Migrant Ruling (Knowledge Migrant Ruling). This allows us to apply for the Highly Skilled Migrant Ruling for your foreign employee in the Netherlands through one of our payroll solutions.
The application for the highly skilled migrant ruling
The application process quickly becomes very time consuming and expensive. Our specialists have the necessary knowledge and experience to take care of the application process for you. Feel free to contact our office regarding the application for the highly skilled migrant ruling.