Knowledge Base

Welcome to the Expatax Knowledge Base containing hundreds of answers to questions we received about topics concerning tax, payroll, accounting, legal, business etc. related to the Netherlands. Search in our Knowledge Base or browse the different categories. Expatax is a Dutch tax and accounting firm specialized in assisting international workers, freelancers and companies. Don't hesitate to contact us if you need assistance or check our website.

Do we have to offer a minimum salary to our part time director?


Is there a mandatory hiring and salary for a CEO in a new B.V.? I have heard about minimum € 40 k / year but see nothing mentioned. We will only be hiring a part-time CEO for the first year. If applicable, will salary drop proportionally?

The minimum required salary of € 44,000 (in 2015) is applicable in case of a director who has at least 5% of the shares in the company. So if the CEO doesn’t have shares the minimum salary is not applicable.

If he does the salary may be reduced proportionally if he has a contract which clearly states that it concerns a part time contract. But there have been court cases in which was decided that based on the actual situation the salary could not be reduced although the director/shareholder didn't work fulltime. It really depends on the specific situation.

Besides that the amount of € 44,000 is a minimum. Also relevant is the salary which other persons earn who are in a similar situation (salary must be at least 75% of the salary these persons earn) and what other employees in the same company earn (the director/shareholder should in principle be the one with the highest salary, unless there are persons who have a unique quality and therefore earn more).
In the first year of existence of the company the tax authorities are in general more flexible with respect to the minimum salary for the director/shareholder. The same in case the company makes structural losses. But there is no guideline for that. 
Attached Files
There are no attachments for this article.
Comments (2)
Comment by SHAILENDRA KHARWAR on Thu, Oct 22nd, 2015 at 10:24 AM
If its a new company and the 1st year theres no business done , is it still mandatory to pay the director Ceo -Minimum Salary .
Comment by Arjan Enneman on Thu, Oct 22nd, 2015 at 10:53 AM
In the first year you can normally pay a lower salary. Especially if no business has been done yet. As said, this is only an issue if the director is also a shareholder.
Security Code Security Code
Related Articles RSS Feed
Taxation of 13th month, holiday allowance and pension fund
Viewed 10880 times since Thu, Sep 5, 2013
Where should I pay tax on my salary? In Spain where my employer is based or in the Netherlands where I work?
Viewed 4105 times since Wed, Jan 9, 2013
What is the minimum wage in the Netherlands in 2013?
Viewed 25541 times since Wed, Jan 9, 2013
Legally regulated terms of employment and social security for part-time workers in the Netherlands
Viewed 10011 times since Wed, Feb 19, 2014
What is the minimum wage in the Netherlands in 2015?
Viewed 14964 times since Thu, Oct 30, 2014
What is a non-competition clause ("concurrentiebeding")?
Viewed 61124 times since Sun, Feb 17, 2013
30% ruling and moving allowance
Viewed 3690 times since Thu, Apr 4, 2013
What is a VAR?
Viewed 3626 times since Mon, Nov 7, 2011
What should I do if my employer wants me to sign a termination agreement?
Viewed 3787 times since Thu, Dec 8, 2011
If I want to quit my job myself, can I claim a redundancy package?
Viewed 29781 times since Thu, Jan 17, 2013