Freelance or employed? Income comparison
Compare online what you keep net as a freelancer versus employed — including Dutch deductions, disability insurance and pension.
As a freelancer
As an employee
Includes 8% holiday allowance (statutory minimum) and standard tax credits. As an employee, your employer automatically builds up pension and social insurance for you.
In this example, as a freelancer you keep €920 more net per month.
- Pension: as an employee your employer builds this up automatically; as a freelancer you have to arrange this yourself.
- Sickness: an employer usually continues paying at least 70% of your salary during illness; as a freelancer you're only covered if you've taken out disability insurance (AOV) yourself.
- Dismissal protection and unemployment benefit: employees have this, freelancers don't.
- Holiday allowance: mandatory for employees (8%), as a freelancer you decide this yourself through your hourly rate.
This calculator gives an indication based on Dutch tax rules for 2026 and is not tax advice. Not sure? Ask an accountant or use the Dutch tax authority's own calculators.
Freelance or employed — which pays more net? This free comparison tool puts both side by side: as a freelancer you enter your hourly rate, billable hours and costs; for employment you enter a gross monthly salary. The tool calculates the net monthly amount for both, based on 2026 Dutch tax rules.
A plain comparison of hourly rate versus gross hourly wage is misleading: as a freelancer you pay your own disability insurance, pension and holiday days, and don't build up dismissal protection or unemployment benefit. This calculator makes those hidden costs visible by including them, and lists the factors that can't be expressed in money.
What's inside?
- Calculates net monthly income for both freelance and employment
- Accounts for the self-employed deduction, SME profit exemption and Zvw (freelance)
- Accounts for holiday allowance and tax credits (employment)
- Configurable disability insurance premium and pension savings for a fair comparison
- Overview of differences that can't be expressed in money: pension, sickness, dismissal protection
Frequently asked questions
Is it fair to compare an hourly rate with a gross hourly wage?
No — a freelancer pays their own disability insurance, pension and non-billable hours, and has no continued pay during illness or unemployment benefit. This calculator includes those costs so you get a fairer net comparison, not just a rate comparison.
Why do I need to enter my own disability insurance premium?
Disability insurance isn't mandatory for freelancers, but is often wise — an employee is automatically covered for this through employee insurance. Enter a realistic premium (often several thousand euros per year, depending on age and coverage) to get a fair comparison.
Does holiday allowance count in the employment calculation?
Yes. The tool automatically adds 8% holiday allowance (the statutory minimum) to the gross annual salary, as it also appears on your annual statement. In practice this is usually paid out separately in May, not monthly.
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VAT return checklist for freelancers (PDF)
Everything to prepare each quarter for your Dutch VAT return: revenue per rate, input VAT, EU sales listing, deadlines and small-business scheme check — as a tickable PDF.
Available from 29/09/2026