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Withholding on wages
Withholding tax is an advance payment on the income taxes that you, as an employee, are required to pay. For each assignment, the employer deducts a certain percentage from your taxable wages (gross salary minus social security contributions). This withholding tax is subsequently settled as part of your final personal income tax assessment. As a temporary worker, you can choose this percentage yourself—the minimum is 11.11% and the maximum is 30%. Opting for a lower percentage means you will have more take-home pay; while this may seem attractive, it carries a significant risk of unpleasant surprises when your final personal income tax is calculated. For this reason, we recommend increasing the percentage—we typically apply a standard rate of 22.8%.