Employment contract vs. self-employment
Today, we would like to share with you some important information about your options how to work on our different projects. We are trying to adjust to the job market so together with some of our clients we have prepared you and option to work as self-employed. In The Netherlands it is a quite common way how to start working and at the moment The Netherlands is that country where we can help you to work this way. Dutch people call it ZZP workers.
The definition of the ZZP colleague is like a one-man-company, just to keep it simple.
Below we have prepared the most important information for you so you can make a decision before you apply to one of our job offers.
In general, we have 2 types of contracts:
1) Employment contract
I think all of you already know what the employment (job) contract means but just to make sure, we’ve put a few information together: When you get an employment contract, this mean you are directly employed by a company and your employer will take care of your health insurance, taxes, holidays, tools, company cars etc. Your employer will assist you to get child benefits, sick payments, your annual tax declarations and so on. All in all, all the paperwork is solved, and you get you pay-slip and you will see a few numbers on it like what is your gross salary, net salary, total hours you worked, how much taxes you paid, how many holidays you have, your travel allowances etc. Behind these few numbers there is a lot of work of smart accountants, but this is taken care by your employer.
2) Self-employed contracts (Romanian: Persoana fizica autorizata/ Bulgarian: Самонает)
Working as a self-employed we have to make a difference:
- If you have your certificate from your home country for example Romania, Bulgarian, Slovakia or some other EU county
- Or you have your self-employed certificate from The Netherlands (ZZP)
If you are registered in your home country (so outside of The Netherlands) you will have to apply for an A1 form. This for will allow you to work abroad. If haven’t worked this way yet, we advise you to go and see an accountant who could give you some more advises how to do everything in a right way.
The main benefit to work as a self employed is that you charge an hourly rate for every hour you work or you agree with a client that when you finish a specific task (projects) you will invoice an amount for your work done. In our case we can offer you an hourly rate between 25-35 EUR / h.
Let’s make a quick comparison:
– Employment contract: 2630 EUR / NET – 173h
(remember, in this case everything was already paid: accommodation, taxes, etc.)
– Self-employed (33 EUR/h): 5709 EUR / 173h
So, after 173h – usually a working month you can invoice 5709 EUR to us. Nice money, ehh 😊
But you need to remember that you will have to pay your accommodation, your tools, car, fuel and all the expenses you have connected with your job. Please note, that you can agree a different payment schedule with a client. In some cases, you can invoice every week or every second week, some of our colleagues’ invoice after a full month. This is based on your agreement.
In case you are working as a self-employed, we consider you as a one-man-company and we expect you to organise all your stuff. You send an invoice, and you get paid.
OK, so now we explained how it works and now we only need to make sure that we understand what the difference is if you are self-employed in your home country (Romania, Bulgaria, Slovakia or any other EU country) and the difference if you became self-employed in The Netherlands because you can do this too.
Actually, there is not a big difference, the model is the same. Because you are a ZZPer (Dutch self-employed man) you don’t have to apply for A1 because you are working in the same country as you are registered. Of course, every country has different taxations laws and there are several differences in other laws too, but the principle is the same.
More details how to obtain Persoana fizica autorizata in Romania:
https://www.onrc.ro/index.php/ro/inmatriculari/persoane-fizice/persoane-fizice-autorizate-pfa
More details how to obtain Самонает in Bulgaria:
https://nra.bg/wps/portal/nra/nachalo
Our tips:
Employment contract is for candidates who just want to work and don’t want to get involved to all regulations, taxes, and different laws. This is the easiest and most comfortable way to be employed without any difficulties as everything will be covered by your employer.
If you are already orientated in regulations, taxes and you have already experience as self-employed, option to work as independent contractor could work for you. If you are smart enough, you will be able to enjoy the benefits of being self-employed.
The final decision will be up to you, in all cases we are here to assist you to find you the most suitable option.
If you have any questions, feel free to contact us by mail info@dkrs.eu and please visit our website where you can find our current vacancies also with options for self-employed candidates:
