With the conclusion of the first month of the new year, it is an opportune time to review several significant changes to employment law and related regulations that took effect on 1 January 2025.
End of the Enforcement Moratorium on false self-employment
Effective 1 January 2025, the Dutch Tax Authorities will resume standard enforcement measures regarding the misclassification of self-employment. Accordingly, the regular payroll tax rules shall once again apply. The Tax Authorities may impose retrospective adjustments, but only in cases involving malice or failure to comply with previous directives. The Government is committed to ensuring a “soft landing” for well-intentioned contracting parties. Therefore, no fines shall be imposed for the reclassification of employment relationships during 2025; however, standard penalty provisions will resume from 2026. Please note that the evaluation of model agreements by the Tax Authorities will also be discontinued, although any approvals granted to date shall remain valid until the end of 2029.
Changes to the 30% Ruling (Expat Scheme)
From 2025 onwards, the 30% ruling will be referred to as the expat scheme. The cutbacks introduced in 2024 will be reversed, but as of 2027, the maximum percentage will be reduced to 27%. Additionally, the salary thresholds for incoming employees – those relocating to the Netherlands for work – will be increased from EUR 46,107 tot EUR 50,436.
CO2 Reporting on Work-Related Employee Mobility
Employers with 100 or more employees must report on the CO2 emissions related to work-related mobility for the year 2024 no later than 30 June 2025. This includes both commuting and business travel. Further information is available on the website of the Netherlands Enterprise Agency (RVO).
Unemployment Insurance (WW) Premium and Overtime
As of 1 January 2025, the exemption from differentiated WW premiums will be expanded. Employment contracts averaging 30 hours or more per week will now be exempt from higher WW premiums in the event of overtime, providing employers with increased flexibility.
Indexations and Other Amendments
- The statutory minimum wage will increase for employees of the age of 21 years or older as of 1 January 2025 to EUR 14.06 gross.
- The maximum transition compensation will rise to EUR 98,000 gross.
- The tax-free home working allowance will be increased to EUR 2.40 per day.
- The general remuneration cap under the Public and Semi-Public Sector Executives Pay Standards Act (WNT) will be raised to EUR 246,000.