As employment law and regulations shift, staying informed about these developments is crucial for employers, employees, and Works Councils in the Netherlands.
In this blog post a summary of the significant labour law changes in 2024 will be discussed.
Table of Contents
Minimum Wage Netherlands per Hour
Commencing January 1, 2024, the statutory minimum wage is established on an hourly basis for all industries in the Netherlands. All employees aged 15 and above are required to receive at least the prevailing hourly minimum wage.
However, it is noteworthy that, effective 2024, there no longer exists a minimum wage delineated on a monthly, weekly, or daily basis.
Enrolment in Company Pension Scheme
The age at which an employee becomes eligible to participate in a company pension scheme will change from 21 years to 18 years.
As a result, employers should inform the young professional and to enrol them into their pension scheme in 2024. This effective change is part of the new Agreement on Reforming the Pension System Netherlands [Wet Toekomst Pensioenen].
30 Ruling News – Capping of 30% Facility
Effective January 1, 2024, the 30% rule for expatriates will undergo further tightening. The tax advantage will gradually diminish under the new regulation: for the first 20 months, a tax exemption will still apply to 30% of taxable income.
In addition, for the subsequent 20 months, this will decrease to 20%, and for the following 20 months, up to a maximum of 10% of that income. After 60 months, the maximum duration of an arrangement under the 30% rule expires.
Maximum Transition Payment
The transition (severance) payment amount, in case of involuntary termination, was capped at EUR 89,000 in 2023. In 2024, this is increased to EUR 94,000. In exceptional cases it will be one gross annual salary, if the salary is based on the WNT norm [Wet normering topinkomens – “de Balkenendenorm” year 2024 EUR 233,000.]
Mileage Allowance
Annually, the Dutch government establishes standard mileage rates, serving as the foundation for employer reimbursement of the tax-free ruling.
In 2023, the allowance stood at 0.21 euro cents per kilometre. As of January 2024, the rate per kilometre has been revised upward to 0.23 euro cents per kilometre.
Mandatory Company Carbon Reporting
The Dutch government is introducing a mandatory carbon reporting for companies regarding their work-related mobility (WPM).
Annually companies employing 100 employees, or more are required to provide data on travel by employees to the Netherlands Enterprise Agency (RVO).
Read more in our blog post Mandatory Company Carbon Reporting – Employee Work Related Mobility Netherlands.
More Information
Whether you are an employer, HR professional, or Works Council, we urge you to seize this opportunity to review your policies. In addition, update your practices, and engage with HR and legal experts to navigate the complexities of employment law effectively.
Embrace the power of knowledge and proactive planning to safeguard your organisation’s future success.
