The year 2025 marks a significant shift in employment and labour laws in the Netherlands. These employment law changes 2025 Netherlands are designed to tackle contemporary workplace challenges and promote a more balanced and inclusive working environment.
For employers, management and HR professionals this article provides you with key changes relevant to HR and employment practices to support you prepare for what lies ahead.
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What Are the Employment Law Changes 2025 Netherlands?
Minimum Wage Netherlands per Hour
In 2025 the Dutch statutory minimum wage will increase, and adjustments to maximum working hours will ensure better protection for workers’ health and wellbeing. Commencing January 1, 2024, the statutory minimum wage was established on an hourly basis for all industries in the Netherlands.
Key actions: Update employment contracts and payroll processes in case currently the minimum wage is paid, to reflect the new wage levels and working hour regulations for employees.
Company Pension Plan
The pension system in the Netherlands has undergo a phased Dutch Pension Reform. The year 2025 will be a transitional period for pension funds as they adapt to the new pension regulations. By 1 January 2028, all pension funds must fully comply with these new rules.
Key actions: Stay informed about the plans and timelines of your pension providers. It is equally important to maintain transparency with employees, clearly explaining how these changes will affect them if you have not communicated this already. Find more about Pension System Netherlands: Overview & Insights.
Adjustment 30% Facility
The Dutch government has decided to reverse the previously planned reduction of the tax-free percentage under the 30% facility/30% ruling. In 2025 and 2026, the tax-free percentage will remain at 30%.
From 2027, the tax-free percentage will be reduced to 27% for the entire duration of the ruling. The salary thresholds under the scheme will be increased and the Tax and Customs Administration of the Netherlands has updated the 30 percent ruling conditions.
Key actions: Review the current employee cases that might be impacted in the future and inform them accordingly.
Maximum Transition Payment
The transition (severance) payment amount, in case of involuntary termination, was capped in 2024 at EUR 94,000. In 2025, the maximum transition payment will be increased, although the exact amount has not yet been announced / published by the Dutch government.
Key actions: Budget for potential increases in transition payments for 2025 and stay informed about government announcements to ensure compliance with updated thresholds.
Mileage Allowance 2025
Annually, the Dutch government establishes standard mileage rates, serving as the foundation for employer reimbursement of the tax-free ruling. As of January 2025, the mileage allowance remain unchanged from 2024 to 0.23 euro cents per kilometre.
Key actions: There are no adjustments to mileage reimbursement rates required for 2025. Ensure the allowance is consistently processed through payroll rather than an expense system. For more information read our blog 2025 Mileage Allowance in the Netherlands.
Mandatory Company Carbon Reporting
The Dutch government introduced in 2024 the Mandatory Company Carbon Reporting – Employee Work Related Mobility Netherlands.
Annually companies employing 100 employees, or more are required to provide data on travel incl. commuting by employees to the Netherlands Enterprise Agency (RVO) by the latest June 30, 2025.
Key actions: Ensure there is a system in place to track and compile data on employee business travel and commuting. Prepare to submit the required information by the deadline to avoid penalties. Review internal business travel and commuting policies to align with sustainability and the new process of tracking.
Enhancements to Flexible Work Arrangements
The Dutch government continues to prioritise work-life balance by refining laws around flexible work arrangements. In 2025, employers will face stricter requirements when rejecting employee requests for remote or flexible work. Employers must provide solid justifications, emphasising mutual consultation to find workable solutions.
Key actions: Companies should revisit their remote work policies and ensure transparent communication channels for handling such requests, including have knowledge around The Dutch Flexible Work Act see the chapter in this article Navigating the Dynamics of Employment Law in the Netherlands.
Assessing Work Relationship Between Company and Contractor/Freelancer
The Tax and Customs Administration of the Netherlands has announced, effective 1 January 2025, it will begin auditing self-employed individuals for potential fictitious employment relationships. This marks the end of the current enforcement moratorium and introduces new challenges for both companies and self-employed individuals, including contractors and freelancers.
It is crucial to ensure that when working with contractors and freelancers, especially for extended periods, their contracts clearly outline a defined start and end date. These roles must be project-based, with no indications or elements suggesting that the work could have been performed as part of a standard employment contract. Any ambiguity could lead to the arrangement being classified as “disguised employment” [verkapt dienstverband], which may have legal and financial repercussions.
Key actions: Review the contracts of contractors and freelancers, particularly those engaged for extended periods. Ensure the scope, projects, and activities are well described in their agreements to mitigate the risk of “disguised employment.”
Proposed Employment Law Changes Netherlands – Subject to Confirmation
Proposed Dutch employment law changes include stricter rules on contracts, adjustments to non-compete clauses, changes to sick leave obligations, and mandatory measures to improve workplace well-being. While these proposals below are not yet confirmed, they signal a shift towards increased employee protections and employer responsibilities. These bills may or may not come into effect in 2025, pending approval by the Dutch First and Second Chamber.
- Ban on Zero-Hours Contracts
Zero-hour employment contracts are proposed to be replaced with minimum-hours contracts. - Amendments to Fixed-Term Employment Contract Rules
The waiting period for starting a new chain of fixed-term contracts would increase from six months to five years. After three temporary fixed term employment contracts, the employer may only offer a new temporary contract after a five-year waiting period instead of the current six months. - Non-Compete Clauses
Proposals aim to limit non-compete clauses by restricting their duration and geographical scope. Employers would need to justify non-compete provisions in indefinite contracts based on a compelling business interest and provide compensation to employees adhering to such clauses. - Sick Leave Obligations Second Year: Replacement Employee:
A proposal would give small and medium-sized employers flexibility during the second year of employee sickness by focusing entirely on re-integration with a different employer (Track 2). Employers would no longer be required to hold the employee’s original role open. The 104-week wage payment obligation remains unchanged. - Mandatory Bereavement Leave
The Netherlands has no general statutory provision for bereavement leave. Only a limited number of Collective Labour Agreements (CLA) address this issue and companies (not covered by a CLA) might refer in their Employee Handbook to Special Leave. The proposed legislation aims to establish a statutory right to paid leave for employees in the event of the death of a partner or child. - Mandatory Confidential Advisor
Companies with ten or more employees may be required to appoint a Mandatory Confidential Counsellor in the Netherlands.
These changes remain subject to confirmation and Human in Progress will inform you accordingly.
More Information
- The Future of HR: Global HR Trends 2025.
- 2025 Mileage Allowance in the Netherlands.
- Navigating the Dynamics of Employment Law in the Netherlands.
- SBI Code Changes 2025 Netherlands: Check Your Company Code.
