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Employers take note: these are the major employment law changes in 2026

What will change for employers in 2026? We have listed the main changes and legislative proposals in this blog.

Changes in 2026

Minimum wage up

Like every year, the minimum wage is also rising this year. For employee aged 21 and above, a minimum wage of €14.71 per hour will apply from 1 January 2026. From 1 July 2025, it was €14.40 per hour. The new minimum hourly wage for employees aged 20 or younger can be found on the central government website.

Home working and travel allowance up

The maximum untaxed allowance for employees working from home will increase from €2.40 to €2.45 per day from 1 January 2026. The maximum untaxed travel allowance remains €0.23 per kilometre in 2026, as in 2025.

General remuneration cap raised (Top Income Standardisation Act)

The general remuneration ceiling within the meaning of the Wet normering topinkomens ( WNT) will also go up again next year. This act sets limits to the maximum remuneration of top officials in the (semi)public sector. For 2025, the maximum remuneration was set at €246,000. For 2026, the general remuneration maximum has been set at €262,000.

Free space working costs scheme remains the same

The WKR’s free allowance will remain at 2% in 2026. In 2027, the percentage will rise to 2.16%. This applies to the wage bill up to €400,000. For the wage bill above that, a percentage of 1.18% will apply.

Legislative proposals in 2026

Furthermore, a number of bills are on the way. These laws are not yet finalised, but are expected to come into force in 2026.

Bill to limit compensation scheme for transitional allowance in case of long-term illness

Since 1 April 2020, employers have been able to receive compensation for transitional compensation in case of dismissal due to long-term disability. This bill stipulates that from 1 July 2026, this compensation scheme will be limited to small employers (fewer than 25 employees). Employers with 25 or more employees will thus no longer be able to receive compensation for the transition allowance when an employee leaves employment after two years of illness from 1 July 2026. However, the Council of State is critical and advises that the bill should only be introduced if the full transition compensation in the second year of illness is scrapped.

Bill Clarifying assessment of labour relations and legal presumption (VBAR)

The VBAR Act replaces the DBA Act and aims to clarify the distinction between employees and self-employed persons, thereby reducing false self-employment. This new law introduces an assessment framework of the authority criterion to assess whether an employment contract exists. The VBAR Decree fleshes out this assessment framework. The Bill was submitted to the House of Representatives on 7 July 2025 and the Decree was submitted for internet consultation on 12 September. The entry into force of the Act and the Decree is expected to take place on 1 July 2026.

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Employers take note: these are the major employment law changes in 2026