The year 2026 marks a significant shift in employment and labour laws in the Netherlands. These employment law changes 2026 Netherlands are designed to tackle temporary work, and promote a more balanced 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 Dutch Labour Law Changes 2026?
Minimum Wage Netherlands per Hour
On January 1, 2026 the Dutch statutory minimum wage will increase, rising from EUR 14.40 per hour to EUR 14.71 per hour for a 36-hour workweek. Minimum youth wages will increase by the same percentage.
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.
One-Time Pension Boost
The pension system in the Netherlands has undergo a phased Dutch Pension Reform. By 1 January 2028, all pension funds must fully comply with these new rules.
Around 9.5 million pension accounts will switch on by January 1, 2026 to the new pension system. An one-time pension boost will be delivered at the end of 2025, beginning of 2026, to compensate those in their 40s and 50s who contributed under the old, redistributive system.
The previous Netherlands pension system had younger employees partially funding older participants. That cross-generation subsidy ends under the new rule. Those who contributed will not benefit from future younger employees during their retirement receive compensation.
The one-time boost is calculated based on age, salary, and expected future accrual, factoring in the fund’s financial health. The one-time boost is paid directly into individual pension pot, and will not be paid out in cash.
Find more information here: Netherlands Pension System 2026: The Future Pensions Act.
Adjustment 30% Facility
The Dutch government has decided to reverse the previously planned reduction of the tax-free percentage under the 30% facility also know as the 30% ruling.
In 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 maximum transition payment [transitievergoeding] in case of involuntary termination is for 2026 EUR 102,000 gross.
Key actions: Budget for potential increases in transition payments for 2026 and stay informed about government announcements to ensure compliance with updated thresholds.
Mileage Allowance 2026
Annually, the Dutch government establishes standard mileage rates, serving as the foundation for employer reimbursement of the tax-free ruling. As of January 2026, the mileage allowance is 0.23 euro cents per kilometre, it remains unchanged since 2025.
Key actions: Ensure the allowance is consistently processed through payroll rather than an expense system.
For more information read our article here: 2026 Mileage Allowance in the Netherlands.
CSRD Reporting EU: Mandatory Reporting on Corporate Sustainability.
Starting 2024, large companies with more than 500 employees and listed, a bank, or an insurance undertaking, were required to report under CSRD. From January 1, 2026, companies will have to publish their first CSRD report, covering the 2025 financial year. The reporting is applicable for organisations that meet at least two of the following three criteria:
- more than 250 employees;
- a balance sheet total exceeding EUR 25 million;
- net turnover exceeding EUR 50 million.
More information can be found here: CSRD Reporting EU: Mandatory Reporting on Corporate Sustainability.
Labour Tax Credit Netherlands 2026: Positive Impact Part-time Employees.
In 2026, the Netherlands introduces important reforms in the labour tax credit. The Dutch government boosts support for part-time employees. By lowering income thresholds and indexing them to the minimum wage, the credit applied is a deduction but results in a net salary increases.
More information can be found here: Labour Tax Credit Netherlands 2026: Positive Impact Part-time Employees.
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, these bills may or may not come into effect by July 1, 2026, January 1, 2027 or date still unknown, pending approval by the Dutch First and Second Chamber.
- Cybersecurity Act Netherlands: EU NIS2: Implementation in Q2, 2026.
The Act imposes strict cybersecurity obligations on organisations that operate in critical industries, where service disruptions could cause significant societal or economic harm. These industries include, but are not limited to the Dutch public sector, banking and financial markets, energy, transport and logistics, health care, digital and IT providers.More information can be found here: Cybersecurity Act Netherlands: EU NIS2 Implementation in 2026. - Reimbursement of Transition Payment only for Small Businesses Sick Leave by July 1, 2026
In regard to the compensation transition payment, where an employer terminates the employment of an employee after two years of incapacity for work, the employer is generally required to pay a statutory transition payment. As of 1 July 2026, only small business (less than 25 employees) will remain eligible for compensation of the transition payment by UWV. More information can be found here: Compensation Transition Payment Netherlands 2026: Only for Small Businesses. -
EU Pay Transparency Directive Netherlands by January 1, 2027: Netherlands is the first EU member state to postpone implementation to January 1, 2027.The Netherlands has now formally announced a delay the implementation deadline. Read more about the Netherlands Delays EU Pay Transparency Directive 2026 of the EU Pay Transparency Directive (EU) 2023/970.
- Zero-Hours Contracts Banned by January 1, 2027
Zero-hour employment contracts [nulurencontracten] are not allowed by law starting January 1, 2027. The Dutch government is abolishing contractual arrangements that allow employers to set working hours at zero, thereby effectively creating on-call employment relationships without guaranteed working hours.
As a result of this legislative change, employers will be required to include a minimum number of guaranteed working hours in employment contracts.The Zero-hour employment contracts will be replaced by so-called bandwidth contracts. Under that employment contract, a minimum and a maximum number of working hours are agreed in advance, with the difference between the minimum and maximum capped at 130%. This means that for example, where a minimum of 10 working hours is agreed, the maximum number of working hours may not exceed 13 hours.
Key action: Zero-hour or similar on-call contracts must be amended in new contractual arrangements prior to the statutory implementation deadline. Employees who perform work on a regular and recurring basis will be entitled to employment contracts that accurately reflect their actual and structural working patterns. - Amendments to Fixed-Term Employment Contract Rules by January 1, 2027
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. - Sick Leave Obligations Second Year: Replacement Employee: Effective Date of Law Unknown
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 Confidential Advisor: Effective Date of Law Unknown
Companies with ten or more employees may be required to appoint mandatory Confidential Counsellor.
More information can be found here: Mandatory Confidential Counsellor in the Netherlands. - Mandatory Bereavement Leave: Effective Date of Law Unknown
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 Code of Conduct: Effective Date of Law Unknown
Employers with ten or more employees will be required to adopt a Code of Conduct addressing undesirable behaviour in the workplace. Undesirable behaviour includes, but is not limited to, bullying, sexual harassment, discrimination, aggression, or violence committed by colleagues or supervisors. - Non-Compete Clauses: Effective Date in Dutch Civil Code Unknown
Proposal is aimed to limit non-compete clauses by restricting the duration (only 1 year after termination of employment) 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.
These changes remain subject to confirmation and Human in Progress will inform you accordingly.
More Information
- 2026 Mileage Allowance in the Netherlands.
- Labour Tax Credit Netherlands 2026: Positive Impact Part-time Employees.
- Netherlands Pension System 2026: The Future Pensions Act.
- Public Holidays 2026 Netherlands: Overview & Guidance.
- Gain Understanding of the EU Pay Transparency Directive 2026.
- Compensation Transition Payment Netherlands 2026: Only for Small Businesses.
