# The India Employee Benefits Stack for Dutch companies

> Dutch parents are used to individual health insurance with an employer contribution, two years of sick pay, an 8% holiday allowance and, in many sectors, a compulsory pension fund. India's statutory layer is EPF, ESI below ₹21,000 a month, gratuity and employer-paid maternity leave. Health cover, accident cover and long-illness pay above that line are the employer's own choices.

By Akshay Golechha, Chief Business Officer at Plum (https://www.linkedin.com/in/akshaygolechha/). Published by Plum (https://www.plumhq.com). Canonical: https://www.plumhq.com/india-benefits-stack/netherlands. Updated 2026-10-05. Part of The India Employee Benefits Stack: https://www.plumhq.com/india-benefits-stack.

## In short

- There is no equivalent of Dutch basic health insurance (basisverzekering) or the employer's Zvw contribution in India. Above ₹21,000 a month there is no statutory health cover; employers buy Group Health Insurance, expected from ₹8 LPA.
- Dutch employers pay at least 70% of salary for up to two years of sickness. India has no statutory sick pay above the ESI line beyond leave days, and no holiday allowance; gratuity after five years is the statutory lump sum instead.
- Staff seconded from the Netherlands can stay in Dutch social security for up to 60 months under the India–Netherlands social security agreement, in force since 1 December 2011, if they hold a certificate of coverage.

## Questions

### Is there an equivalent of Dutch basic health insurance in India?

No. India has no statutory health insurance for salaried staff above ₹21,000 a month and no employer contribution like the Zvw. Employees at or below that wage sit in ESI, funded 3.25% by the employer and 0.75% by the employee. Everyone else is covered only if the employer buys Group Health Insurance, which candidates hired at ₹8 LPA and above expect.

### Do we have to continue pay for two years when an employee in India is sick?

No. For employees above ₹21,000 a month, the statutory floor is the sick and casual leave set by the state Shops and Establishments Act or the Factories Act. Employees at or below that wage are in ESI. Anything beyond that, such as extended sick leave or salary continuation, is the employer's own policy and should be written down in advance.

### Do Dutch secondees have to contribute to EPF in India?

Not if they hold a certificate of coverage under the India–Netherlands social security agreement, in force since 1 December 2011. It keeps them in Dutch social security for up to 60 months. Without the certificate, a foreign national employed in India is an International Worker and contributes to EPF on full salary, with no ₹15,000 ceiling, from day one.

### Is there a holiday allowance in India?

No. India has no statutory holiday allowance, and offers are quoted as annual CTC. Employees earning up to ₹21,000 a month are owed a statutory bonus of 8.33% to 20% under the Payment of Bonus Act. Earned leave is typically 12 to 18 days a year plus casual and sick leave, depending on the state.

### What replaces the Dutch pension fund in India?

EPF. It is compulsory for establishments with 20 or more employees, at 12% from the employer and 12% from the employee on basic pay, with 8.33% of the employer share going to EPS. India also has gratuity: 15 days' last drawn salary per year of service after five continuous years, capped at ₹20 lakh, paid by the employer.

## What changes when you come from the Netherlands

### Assignees from the Netherlands and India's EPF

**The rule.** Foreign nationals employed in India are International Workers under EPF. They must join from day one, with contributions on full salary: the ₹15,000 wage ceiling does not apply.
**The Netherlands and India.** India and the Netherlands have a social security agreement in force since 1 December 2011. Staff seconded from the Netherlands with a certificate of coverage stay in Dutch social security and are exempt from Indian EPF for up to 60 months. The agreement also lets pensions be paid abroad without reduction. Get the certificate before the first Indian payroll run.

### Mapping Dutch benefits to India

**At home.** Individual basic health insurance plus the employer's Zvw contribution, employee insurance premiums, at least 70% sick pay for up to two years, an 8% holiday allowance and, in many sectors, a compulsory pension fund.
**In India.** EPF for pension, ESI below ₹21,000 a month and employer-paid Group Health Insurance (GHI) for everyone else. Gratuity is a statutory lump sum after five years: fund it through an insured gratuity scheme rather than carrying it as an unfunded liability.

### Overlap between Amsterdam and India

**Time difference.** India is 3½ hours ahead of Amsterdam during European summer time (late March to late October) and 4½ hours ahead in winter. India does not change its clocks, so 9:00 in Amsterdam is 12:30 or 13:30 in India.
**What to set up.** Agree who in India signs off endorsements, claims escalations and renewals, so nothing waits for headquarters' business hours.

### India–Netherlands tax treaty

**Treaty.** India and the Netherlands have a double taxation avoidance convention, signed in 1988 and in force since 21 January 1989, amended by a 2012 protocol on exchange of information. Short visits are usually exempt from Indian tax under the treaty's 183-day and employer conditions; check the exact article before relying on it.
**Secondments.** Long secondments can create a permanent establishment for the parent. Structure recharges and employment contracts with a tax advisor before staff move.

## What you call it in the Netherlands, and what it is called in India

In the Netherlands every resident buys basic health insurance (basisverzekering) from a private insurer, and the employer pays an income-related contribution under the Zvw of 6.10% of salary in 2026, up to a ceiling. India has no equivalent for salaried staff. Below ₹21,000 a month employees sit in ESI; above that line India has no statutory health cover, and the employer's statutory health obligation is zero. Group Health Insurance (GHI) is voluntary in law and expected by candidates hired at ₹8 LPA and above.

| At home in the Netherlands | In India | What changes for the employer |
| --- | --- | --- |
| Basic health insurance (Basisverzekering (Zvw)): Compulsory for residents and bought individually, with a €385 compulsory deductible in 2026. The employer pays an income-related contribution of 6.10% of salary, up to a ceiling. | ESI for employees at or below ₹21,000/month; Group Health Insurance (GHI) for everyone else | The employer moves from paying a payroll levy to buying the policy itself. GHI is voluntary in law but expected by candidates hired at ₹8 LPA and above. India's median sum insured is ₹5 lakh; global startups in India carry ₹10 lakh. Family members are covered only if the policy includes them. |
| Sick pay (Loondoorbetaling bij ziekte): Employer pays at least 70% of salary for up to 104 weeks of illness, topped up to the minimum wage in the first year, and must support reintegration. | Sick and casual leave under state law; ESI for employees at or below ₹21,000/month | No two-year obligation and no reintegration regime. Above the ESI line, salary in a long illness is whatever the employer's leave policy says, so decide it in advance. Group Personal Accident covers accidental disability only. |
| Holiday allowance (Vakantiegeld): Holiday allowance of at least 8% of gross annual salary, usually paid in May or June. | None statutory | India has no holiday allowance. Offers are quoted as annual CTC, so any such payment is usually folded into it. Under the Labour Codes, allowances above 50% of total remuneration are added back into wages for EPF and gratuity, so test the structure. |
| Statutory leave (Wettelijke vakantiedagen): Statutory leave of four times the weekly working hours a year: 20 days for a full-time employee. | Earned leave under the state Shops and Establishments Act (offices) or the Factories Act (factories) | Earned leave is typically 12 to 18 days a year, plus casual and sick leave, and varies by state. Public holidays also vary by state; only three are national. |
| Occupational pension (Pensioenfonds): Not required by law in general, but compulsory where a sector pension fund or collective agreement applies. | EPF and EPS (Employees' Provident Fund and Pension Scheme) | EPF is compulsory for establishments with 20+ employees: 12% employer plus 12% employee on basic wages, with 8.33% of the employer share going to EPS. The employer registers, deducts and deposits; most MNC subsidiaries contribute on full basic rather than the ₹15,000 ceiling. |
| State pension (AOW): Flat-rate state pension from the AOW age, financed through national insurance contributions. | EPS (Employees' Pension Scheme), inside EPF | EPS is funded from the employer's 12%: 8.33% goes to EPS and the balance to EPF. There is no separate state pension contribution on top. |
| Employee insurances (Werknemersverzekeringen (WW, WIA)): Employer-paid premiums for unemployment (WW) and long-term disability (WIA) insurance. | No direct equivalent above the ESI line | Nothing to contribute for unemployment. Work-injury disability falls under the Employees' Compensation Act for staff outside ESI, insured by the employer. Group Personal Accident covers accidental disability; for death cover, Group Term Life at 3 to 5 times CTC is common for white-collar staff. |
| Maternity leave (Zwangerschaps- en bevallingsverlof): At least 16 weeks of pregnancy and maternity leave, with a benefit equal to the daily wage, up to a maximum, paid by UWV. | Maternity Benefit Act: 26 weeks of full pay for the first two children, 12 weeks from the third | Longer, and paid by the employer rather than UWV, unless the employee is in ESI. GHI covers the hospital bill: about ₹1 lakh for a normal delivery and ₹1.25 lakh for a C-section. A crèche is required at 50+ employees. |
| Partner leave (Geboorteverlof): One week at full pay from the employer, then up to five weeks of additional birth leave at 70% of daily wage from UWV. | No statutory paternity leave under central law | Any paternity leave in India is company policy, paid by the employer. Write it into the leave policy so it applies the same way in every state. |
| 30% ruling (30%-regeling): Tax-free allowance of up to 30% of salary for qualifying staff recruited from abroad; 27% from 1 January 2027. | No comparable tax concession for staff seconded to India | The ruling helps when Indian staff move to the Netherlands. In the other direction, secondees are taxed under Indian rules and the India–Netherlands treaty, so budget any gross-up in advance. Social security is handled separately, under the social security agreement. |

## What Dutch companies get wrong when they set up in India

1. **Employees buy their own health insurance; we only pay the Zvw contribution.** There is no Zvw in India. Below ₹21,000 a month the employer pays 3.25% into ESI. Above it there is no statutory cover, and candidates hired at ₹8 LPA and above expect the employer to buy Group Health Insurance for them and their families.
2. **Sick employees are paid for up to two years.** Not by law in India. Above the ESI line, the statutory floor is the sick and casual leave days in the state Shops and Establishments Act. A Dutch-style two-year commitment would be a voluntary, uninsured cost; write the long-illness rule down before the first case.
3. **The 8% holiday allowance is a statutory cost everywhere.** India has no holiday allowance; offers are quoted as annual CTC. If you add one, remember that allowances excluded from wages above 50% of total remuneration are added back into wages for EPF and gratuity under the Labour Codes.
4. **Pension is the sector fund's job, not ours.** EPF is compulsory at 20+ employees and runs through payroll: 12% employer plus 12% employee on basic. The employer registers, deducts and deposits; there is no sector fund to hand it to.
5. **Maternity pay comes from UWV, not from us.** Under the Maternity Benefit Act the employer pays 26 weeks of full salary directly for the first two children, 12 weeks from the third. Only ESI members are paid by ESI. Group Health Insurance covers the delivery bill, about ₹1 lakh for a normal delivery.
6. **Exit pay is the transition payment, owed only when we end the contract.** Gratuity is owed to every qualifying leaver, including those who resign: 15 days' last drawn salary per year of service after five continuous years, one year for fixed-term staff, capped at ₹20 lakh. Provision it from the first payroll.
7. **Seconded staff stay in Dutch social security automatically.** Only with a certificate of coverage under the India–Netherlands agreement, in force since 1 December 2011, and for up to 60 months. Without it, a Dutch national employed in India is an International Worker and contributes to EPF on full salary from day one.

## The Netherlands vs India, benefit by benefit

| Benefit | Netherlands | India |
| --- | --- | --- |
| Statutory health cover | Compulsory for residents, bought individually; €385 compulsory deductible in 2026. | ESI for employees earning up to ₹21,000 a month. Nothing above that line. |
| Employer health cost | Income-related Zvw contribution of 6.10% of salary up to a ceiling (2026). | 3.25% of wages into ESI below the line. Above it, a voluntary GHI premium per person. |
| Sick pay | At least 70% of salary for up to 104 weeks, paid by the employer. | Sick and casual leave days under state law. Above the ESI line, nothing statutory beyond that. |
| Holiday allowance | At least 8% of gross annual salary. | None. |
| Paid leave | Four times weekly hours: 20 days for a full-time employee. | Earned leave typically 12 to 18 days plus casual and sick leave, set by state law. |
| Pension | Sector or company pension fund, compulsory where a sector fund or collective agreement applies. | EPF and EPS at 12% employer plus 12% employee on basic pay, compulsory at 20+ employees. |
| Exit payment | Transition payment when the employer ends the contract. | Gratuity for every qualifying leaver: 15 days' last drawn salary per year after five years, capped at ₹20 lakh. |
| Maternity | At least 16 weeks, benefit equal to the daily wage up to a maximum, paid by UWV. | Employer pays 26 weeks of full salary. GHI covers the hospital bill. |
| Partner leave | One week at full pay from the employer, plus up to five weeks at 70% from UWV. | No statutory paternity leave under central law. |
| Disability and death cover | WIA disability insurance funded by employer premiums; survivors' benefits through national insurance (ANW) and pension funds. | EDLI life cover of up to ₹7 lakh through EPFO; Group Term Life and Group Personal Accident bought voluntarily. |
| Unemployment insurance | WW premium paid by the employer. | None. Exit costs sit in notice pay and gratuity. |

## Staff seconded from the Netherlands

Seconded staff often keep a Dutch or international health policy, but an India-admitted GHI is still worth adding: it gives cashless admission at network hospitals without an advance deposit. Under the India–Netherlands social security agreement, a secondee with a certificate of coverage stays in Dutch social security and is exempt from EPF for up to 60 months. Without the certificate, EPF applies on full salary from day one, so apply before the posting starts.

## Where Dutch companies set up in India

- **Bengaluru, Karnataka.** Philips Innovation Campus, Shell's technology centre and Heineken's United Breweries headquarters. Engineering and corporate hiring sits well above ₹8 LPA, where GHI is expected as standard.
- **Delhi NCR, Haryana and Uttar Pradesh.** NXP's design centre in Noida and Prosus-owned PayU in Gurugram. Haryana and Uttar Pradesh have separate Shops and Establishments rules, so one NCR leave policy may need two versions.
- **Pune, Maharashtra.** Vanderlande's engineering centre, alongside other Dutch technology offices. Office staff follow Maharashtra's Shops and Establishments Act; any plant follows the Factories Act.
- **Chennai, Tamil Nadu.** Randstad India's headquarters. Tamil Nadu has its own Shops and Establishments leave rules for office staff, which differ from the Karnataka and Maharashtra rules used elsewhere.

Dutch companies with operations in India include Philips, Shell, Heineken, NXP Semiconductors, Signify, Randstad, Prosus, Wolters Kluwer, Vanderlande, Royal HaskoningDHV.

## Benchmarks: what MNCs and GCCs offer in India

From [The Standard of Employee Benefits 2026–27](https://www.plumhq.com/standard-of-employee-benefits), Plum's report on 15,312 benefit plans, 5,20,100 claims and 74,543 checkups from Plum's FY26 book.

- **1.6×** MNC and GCC benefits spend per employee in India, against a funded Indian startup (nearly 3× a local Indian business). ([source](https://www.plumhq.com/standard-of-employee-benefits#s2-3))
- **43%** of MNCs and GCCs in India are Holistic Leaders: deep insurance plus real breadth of healthcare beside it. ([source](https://www.plumhq.com/standard-of-employee-benefits#s2-3))
- **₹7,50,000** median MNC/GCC sum insured, covering parents or in-laws, with ₹1,00,000 maternity cover and no copays or sub-limits. ([source](https://www.plumhq.com/standard-of-employee-benefits#s2-3))
- **~2%** of payroll buys India's top-quartile plan, against roughly 15% in the US, 10–25% across Europe and 8–15% across APAC. ([source](https://www.plumhq.com/standard-of-employee-benefits#s2-3-coverage))

### India's top-quartile plan against Germany, France and the Netherlands

| | India | Germany, France and the Netherlands |
|---|---|---|
| Benefits budget, share of payroll | ~2–3.5% (2% typical), plus 13% PF and 4.81% gratuity | ~20–25% (10–25% band); German employer health ~7.3% of gross |
| What the employee still pays | Nothing: no deductible, no copay or coinsurance, no room-rent limit, no waiting period | Germany: $12 a hospital day and $12–24 outpatient. France: a $23 daily hospital charge and $9–12 outpatient |
| Who is on the policy | Employee, spouse, up to 4 children, 2 parents or in-laws, LGBTQ+ and live-in partners | Germany: dependants without income at no extra cost. France: the employer pays at least 50% of the mutuelle for the family |

India's top-quartile plan is the only one of the seven that includes parents, and treatments cost 60–90% less than in the US, Europe or Australia. Source: https://www.plumhq.com/standard-of-employee-benefits#s2-3-coverage

## Further reading on plumhq.com

- [How MNCs structure health insurance for Indian subsidiaries](https://www.plumhq.com/blog/mnc-health-insurance-india-subsidiary-structure): Global programmes, local policies and who signs what.
- [Do you need to match headquarters' benefits in India?](https://www.plumhq.com/blog/gcc-match-headquarters-benefit-standards-india): Where to mirror the parent plan, and where India needs its own design.
- [Insurance for expatriate employees in India](https://www.plumhq.com/blog/insurance-coverage-expatriate-employees-gcc-india): Covering seconded staff alongside the local plan.
- [Group insurance vs ESI: a guide for employers](https://www.plumhq.com/blog/group-insurance-vs-esi-employers-guide): Who must be in ESI, and where group health insurance takes over.
- [How to calculate gratuity in India](https://www.plumhq.com/blog/how-to-calculate-gratuity): Formulas, worked examples and a free calculator.
- [The Standard of Employee Benefits 2026–27](https://www.plumhq.com/standard-of-employee-benefits): Benchmarks from 4,500+ Indian employee health plans.

Sources: Business.gov.nl (Netherlands Enterprise Agency): sick pay, holiday allowance, holiday entitlement, pension schemes and the 30% ruling change to 27% from 2027; Ministry of Health, Welfare and Sport, 2026 budget (employer Zvw contribution 6.10%) and the 2026 freeze of the compulsory deductible at €385; Wet arbeid en zorg, articles 3:1 and 3:13 (pregnancy and maternity leave and benefit); Rijksoverheid, geboorteverlof and aanvullend geboorteverlof; Agreement on Social Security between the Netherlands and India (Tractatenblad 2010, 237), in force 1 December 2011; India–Netherlands Double Taxation Avoidance Convention (1988, in force 21 January 1989) and 2012 Protocol (incometaxindia.gov.in); Code on Social Security 2020 and Code on Wages 2019, in force 21 November 2025.