Cost effective 

According to the report, for a married couple (partner not working) with two children, the net pay that the employee takes from a gross annual salary is among the highest in the Netherlands. This implies that the Netherlands is a very cost effective location in terms of cost of labour for companies. Most countries that were surveyed deploy a progressive income tax system with marginal taxes, increasing when the gross income rises. This is illustrated by the fact that when the worker’s gross pay rises from 21,958.90 euros to 31,940.22 euros, the employer costs also rise sharply in the Czech Republic, Slovakia, Italy, Sweden and Spain.

Competitive labour costs

Compared to several other urban regions in Western Europe, the Amsterdam Metropolitan Area is able to offer relatively low employer labour costs. The area not only has the lowest social contribution (12.5%) paid by the employer, but it also offers the most attractive labour costs and performance incentives in comparison to the UK, Belgium and Germany.