Effective 1 January 2024, a number of changes to Dutch employment law has been implemented. We have listed a number of the most significant changes below.
No longer ZZP Model agreement free
replacement
The model agreements based on free replacement can no longer be
used to regulate the employment relationship and collaboration with
self-employed workers without personnel. Effective from 1 January
2024 the Tax Authorities withdrew their consent for those model
agreements. This is the result of the Supreme Court's ruling in
the Deliveroo case that free replacement might constitute working
in employment. Companies using model agreements based on free
replacement would do well to shortly review employment
relationships and to make changes where necessary.
Minimum hourly wage
In 1969 the Netherlands introduced the statutory minimum wage,
calculated by an amount per month, per week and per day. This made
the amount of the minimum wage per hour (not laid down by law)
conditional on the number of hours that an industry or company
considers fulltime and meant that minimum wage earners working 40
hours received a lower hourly wage than their co-workers working 36
(or 38) hours a week. The introduction of the statutory minimum
hourly wage on 1 January 2024 put an end to this inequality. The
statutory minimum wage per day, week or month has been replaced by
one uniform minimum hourly wage that applies to all employees in
the Netherlands. As from 1 January 2024 the minimum hourly wage for
all employees aged 21 and over will be EUR 13.27 gross.
Maximum transition payment
increased
Two factors determine the statutory transition payment usually
payable to employees if the employment is terminated unilaterally
by the employer: the employee's monthly salary and the duration
of the employment. The maximum transition payment is adjusted every
year. As from 1 January 2024 the transition payment will be EUR
94,000 maximum gross or a gross annual salary, whichever is
higher.
Untaxed travel allowance increased
Effective from 1 January 2024 the maximum untaxed travel allowance
went up from EUR 0.21 per kilometre to EUR 0.23 per kilometre.
Although not required by law, employers can now reimburse a higher
untaxed amount.
Increase in untaxed homeworking allowance
The homeworking allowance that employers may pay employees untaxed
also went up on 1 January 2024, from EUR 2.15 per day to EUR 2.35
per day.
Rise in state-pension age
The state-pension age has risen from 66 years and ten months to 67
years. After 2027 the state-pension age will go up again.
(Temporary) reduction of 30% scheme
Before, employees from outside the Netherlands did, under certain
conditions, not have to pay taxes over 30% maximum of their
salaries. As from 1 January 2024 the 30% scheme will be adjusted to
the so-called Balkenende standard (EUR 233,000 in 2024), and the
tax exemption will be phased down. Over the first twenty months the
exemption will be 20%, while over the next twenty months a 10%
exemption will apply. Applications submitted before 1 January 2024
will be subject to a transitional scheme.
There is a chance that the reduction will be reversed (in part): a storm of protest has led the Upper House to ask the government to come up with an alternative that will be less unfavourable economically. The alternative plan should be integrated into the Tax Plan 2025.
Participation in pension lowered from 21 to 18
years
Under the Future Pensions Act employees can take part in a pension
plan at an earlier age. Effective from 1 January 2024 the lower
limit has been brought down from 21 to 18 years. This means that
employers must offer appropriate pension plans to employees aged 18
and older.
Reporting obligation for work-related mobility of
persons ('WPN')
As from 1 July 2024 employers with more than 100 employees must
report to the Dutch Enterprise Agency ('RVO') about the
commuting and business traffic of their employees. The purpose is
to persuade employers to make conscious choices in favour of
sustainable mobility, thus reducing greenhouse gas emissions from
transport. By 30 June 2025 at the latest the data requested for
2024 must be filed. For more information we refer to our previous
Alert (in Dutch): Rapportageverplichting werkgebonden
personenmobiliteit (WPN) uitgesteld van 1 januari 2024 naar 1 juli
2024.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.