The country of nearly 18 million is at nearly 85 per cent fully-vaccinated among its adult population.
However, the Netherlands ditched most restrictions on September 15 when it had only achieved a 77 per cent vaccination rate among eligible adults. It dumped social distancing and functioned as normal, albeit with vaccine certificates required for entry into most places.
The Saturday announcement makes it the first Western European country to descend back into lockdown for the winter.
Other European countries are following similar trajectories, however. Denmark and Austria have also reintroduced restrictions to some parts of society.
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Dutch protesters took to the streets following Rutte's announcement. Police fired water cannons after some members in the crowd threw stones and fireworks at them, according to the BBC.
Rutte also said a World Cup round would still be held but without live spectators.
The country is also trying to roll out a booster shot programme, which was meant to start in December but will now begin from next week.
Another nearby nation, Austria, has been forced to reintroduce lockdown measures as well after Covid cases rose to 11,000 a day.
From Monday, two hard-hit provinces, Upper Austria and Salzburg, will be locked down for anyone who is unvaccinated.
Austrian Chancellor Alexander Schallenberg earlier signposted that locking down unvaccinated people was "probably inevitable", arguing "two-thirds of people should not suffer because others were hesitant".
Vaccine rates are at 65 per cent in Austria.
In Denmark, a Covid-19 certificate that had been ditched in September has now been reinstated.
