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Dutch employment law in 2025: this is what’s changing

As every year, 2025 brings updates to Dutch employment law. Below is an overview of the most significant changes.

Self-Employment and the lifting of the Enforcement Moratorium (under the DBA Act)

As of January 1, 2025, the so-called enforcement moratorium is lifted, allowing the Tax Administration to resume regular enforcement of false self-employment cases. The Tax Administration’s Explanation of the Assessment of Employment Relationships (in Dutch), published on November 1, 2024, clarifies that the assessment framework will be based on facts and circumstances of the specific cases. This framework stems from the criteria established in the Deliveroo ruling. In this case, the Dutch Supreme Court identified nine indicators that may point to the existence of an employment agreement. Please be referred to our previous blog for an elaboration on this ruling.

Enforcement of false self-employment will primarily target the client or employer. On 18 December 2024, the Tax Administration has indicated that, to ensure a ‘soft landing’ in 2025, no fines for omissions and neglect or fines for an offence will be imposed in 2025. However, corrective obligations and additional tax assessments may be imposed retroactively from 1 January 2025. For the period before this date, corrections can only be made in cases of malicious intent or if a previously issued directive was not (adequately) followed.

Additionally, the model agreeements approved and provided by the Tax Administration will be phased out as of 1 January 2025. Approved agreements that are currently being used, can still be used until their expiration, but new agreements are no longer issued. Since the existence of an employment agreement must be assessed based on all facts and circumstances of a particular case, these standardised agreements no longer provide certainty about employment status. We advise reviewing current agreements with freelancers to prevent potential enforcement actions by the Tax Administration.

The 30% Ruling

In 2024, the 30% ruling — a tax scheme that allows expats to receive part of their salary tax-free — was revised. The maximum allowance of 30% over three years was adjusted to a decreasing percentage: up to 30% for the first 20 months, 20% for the next 20 months, and 10% for the final 20 months. However, this adjustment will be reversed in 2025.

The Dutch government has a different cost-saving measure in mind: the maximum tax-free allowance will decrease from 30% to 27%. This change will however not take effect until 2027.

Employee CO₂ Emissions Reporting

Employers with 100 or more employees are required to report the CO₂ emissions from their employees’ commuting and business travel. Reports for the 2024 calendar year must be submitted to the Netherlands Enterprise Agency (RVO) by 1 July 2025.

Adjustments to Unemployment Insurance Contributions and the Overtime Exceptions

Since 2020, the unemployment insurance contribution rate (WW-premium) has differed based on the type of employment contract. A higher rate applies to flexible contracts, while a lower rate applies to permanent contracts, encouraging employers to offer more permanent contracts.

As of 1 January 2025, the high premium rate will rise from 7.64% to 7.74%, and the low rate will increase from 2.64% to 2.74%. Employers must pay the higher rate for employees with a permanent contract who work over 30% more hours than agreed upon in a calendar year. However, contracts for employees working an average of 35 hours or more per week are exempt. As of 2025, this exception is expanded to contracts averaging 30 hours or more per week.

Indexations

Minimum Wage Increase:

  • Effective 1 January 2025, the minimum hourly wage for employees aged 21 and older will increase by 2.75%, from €13.68 to €14.06 per hour. Minimum youth wages (ages 15 to 21) will also rise and can be found on the Dutch government’s website.
  • The next indexation will take place on 1 July 2025. The extent of this increase is not yet determined and depends on the estimated collective labor agreement wage increase by the Netherlands Bureau for Economic Policy Analysis (CPB) and will be announced by the Ministry of Social Affairs and Employment (SZW) in the spring of 2025.

Salary Criteria for Highly Skilled Migrants:

  • In 2025, the salary thresholds for highly skilled migrants will rise by 6.7%. For those aged 30 and older, the new threshold is €5,688 (excluding holiday allowance). For those under 30, the threshold is €4,171.

Allowance for working from home and commuting

  • In 2025, the maximum tax-free homeworking allowance increases from €2.35 to €2.40 per day. The maximum tax-free commuting allowance remains €0.23 per kilometer.

Officials’ Pay Cap Increase under the Standards for Remuneration Act (WNT)

  • The general remuneration cap under the Standards for Remuneration Act (WNT) is also increasing. The WNT sets limits on the maximum remuneration for top executives in the (semi-)public sector. For 2025, the maximum remuneration has been set at €246,000, representing a 5.4% increase compared to 2024.

Increased maximum severance payment

  • The maximum transition compensation increases in 2025. This amount is adjusted annually based on contractual wage trends. In 2024 the maximum compensation was €94,000 and rises to €98,000 in 2025.

Work-related costs scheme

  • The tax-free allowance percentage under the work-related costs scheme will increase for wages up to €400,000, rising from 1.92% to 2%. For wages above €400,000, the percentage remains 1.18%.

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Dutch employment law in 2025: this is what’s changing

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