As the end of the year approaches, it is time to look ahead. We have compiled the key employment law changes in the Netherlands for 2024!
I. Implementation of Minimum Hourly Wage and Salary Increase Law
Starting January 1, 2024, the Minimum Hourly Wage Implementation Law will come into effect. This law mandates employers to pay employees at least the minimum wage per hour. There is a fixed minimum hourly wage for all employees aged 21 and older. With this change, the statutory minimum wage also increases by 3.75% to € 13.27 per hour. These two changes will lead to additional salary increases for many companies.
II. Work-related cost scheme (WKR)
The free space in the Work-Related Cost Scheme (WKR) for the first € 400,000 of the fiscal wage bill was temporarily increased to 3% in 2023. From January 1, 2024, the usual percentage of 1.92% will be reinstated.
III. Maximum severance payment increase
The maximum amount of the statutory severance pay, so-called transition fee is adjusted annually based on changes in contract wages. As of January 1, 2024, the maximum statutory severance pay will increase slightly. The statutory severance payment was € 89,000 in 2023 and will rise to € 94,000.
IV. Increase in AOW Retirement Age to 67 Years
The age at which Dutch citizens qualify for AOW (state pension) is gradually increasing. As of January 1, 2024, the AOW retirement age will rise from 66 years and 10 months to 67 years. It will remain at 67 years for the years 2025 to 2027. In 2028, it will increase by 3 months to 67 years and 3 months.
V. Model Agreements for Self-Employed Individuals (zzp’ers)
Following the Deliveroo ruling by the Supreme Court, where it was determined that there could be an employment relationship in cases of free substitution, the Tax Authorities will withdraw approval for model agreements allowing the contractor to be freely replaced. This means that model agreements based on free substitution will no longer be usable. Companies using such agreements must reassess the employment relationship before January 1 and offer a new model agreement.
VI. Restriction of the 30% Ruling
Starting January 1, 2024, there will be a maximum for the 30% ruling in the form of the so-called Balkenendenorm. This means that the 30% ruling can only be applied to a salary up to € 233,000.
VII. STAP budget
The training subsidy STAP will end in 2024. Through a more targeted design of the STAP scheme, a sum of €147 million will be available in 2023. Of this amount, €73.5 million will go to the training subsidy SLIM (Stimulating Learning and Development in SMEs subsidy) in the period 2024-2027.
VIII. Report on employee mobility
Starting July 1, 2024, employers with 100 or more employees must annually, by June 30 at the latest, submit a report on commuting and business mobility for the previous calendar year, in accordance with the Decree on Work-Related Person Mobility. From July 1, 2024, employers with 100 or more employees are also obliged to report on business and commuting traffic.
With this obligation, the Netherlands Enterprise Agency collects data on the CO2 emissions caused by work-related traffic. Employers can enter data on the business and commuting traffic of their employees on the website of the Netherlands Enterprise Agency.
IX. Possible changes
In addition to the above-mentioned changes, several legislative proposals are in progress. There are plans to restrict the inclusion of non-compete clauses in employment contracts, to regulate zero-hour contracts, to mandate companies with 10 or more employees to appoint a confidential advisor, and to develop measures to regulate the self-employed construction and counteract false constructions.
Due to the above-mentioned changes, employers need to review and adjust agreements in collective labor agreements, employment contracts, employee handbooks, and salary systems. If you have questions or need support in implementing these changes, CERTA is ready to assist you.
On behalf of the employment law team,
CERTA, because you want progress.