As of the start of the new year, there will be some changes in terms of laws and regulations. As you’re in-country knowledge partner, we have listed the most important legislative changes for you. This way you don’t have to search for them yourself and you know exactly what is changing in the Dutch employment law.
30% ruling
If an employee comes to work in the Netherlands from another country, they may have to deal with higher costs of living than they are used to. An employer is allowed to provide tax-free reimbursement for these so-called ‘extraterritorial costs’. The employer can choose to pay the employee 30% of his salary, including extraterritorial costs, tax-free. This is the 30% facility.
The salary criteria for the 30% ruling as per January 2022 are:
- The annual taxable salary for an employee must be more than EUR 39.467,00 (2021: EUR 38.961,00)
- The annual taxable salary for an employee with a qualifying master degree and who is younger than 30 years, must be more than EUR 30.001,00 (2021: EUR 29.616,00)
Minimum wage
The minimum wage per month as of January 2022 is EUR 1.725,00 gross (2021: EUR 1.701,00).
Salary criteria for work permits:
The work permits minimum wages have changed.
Social contributions
The annual maximum social wage as per January 2022 is EUR 59.706,00 (2021: EUR 58.311,00).
Adequate Pension
The Employer’s contribution to the Adequate Pension by law per January 2022 is 15,8% of the gross salary (2021: 14,5%).
The maximum pensionable salary per January 2022 is EUR 114.866,00 (2021: 112.189,00).
The AOW franchise per January 2022 is EUR 14.802,00 (2021: EUR 14.544,00).
The pension contributions will start per the first full month of employment and will end on the last day of the month in which the Employee is employed.
Immigration costs
Highly Skilled Migrant or EU Bluecard Permit, initial or extension: EUR 345,00 (2021: EUR 320,00)
Dependent spouse/partner permit, initial or extension: EUR 207,00 (2021: EUR 192,00)
Dependent child permit, initial or extension EUR 69,00 (2021: EUR 64,00)
Expatcenter Amsterdam – Cost for the combined (City Hall / Immigration) registration
Risk Insurances
The premium percentages and the maximum wage, with the exception of the maximum social security wage, for the insurance remain the same. The following premium percentages are therefore also applicable for 2022:
- Sick pay insurance: 1,584% with an annual cap of EUR 125.000,00.
- Disability cap insurance: 0,247%
- Excedent insurance: 2,134% with an annual cap of EUR 273.991,71.
Paid parental leave (starting from August 2nd, 2022)
As of August 2, 2022, parents will be paid for 9 weeks of parental leave. By doing so, the government is encouraging parents to actually take parental leave. The Employee Insurance Agency (UWV) pays 50% of an employee’s daily wages during parental leave, up to 50% of the maximum daily wage. Parents will have to use the 9 weeks’ paid leave in the first year after the child is born.
The remaining 17 weeks can be used as they wish until the child’s 8th birthday, but without payment.
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Are you curious about what will change in terms of laws and regulations in the other countries we’re located in? Read more about the legal changes in Germany, France, Ireland and Spain. Do you want to dive deeper into these changes? Our HR experts in the Netherlands will be happy to support you. Fill out the contact form below and we will get back to you as soon as possible!
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