At the beginning of the year, there will be several changes to laws and regulations. As your local knowledge partner, we have compiled a list of the most significant changes to the Dutch employment law for you, so that you don’t have to do the research yourself and can be fully informed about the changes that are occurring.
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 2023 are:
- The annual taxable salary for an employee must be more than EUR 41.953,00 (2022: EUR 39.467,00)
- The annual taxable salary for an employee with a qualifying master degree and who is younger than 30 years, must be more than EUR 31.891,00 (2022: EUR 30.001,00)
Minimum wage
The minimum wage per month as per January 2023 is EUR 1.934,40 gross (2022-07: EUR 1.756,20).
Salary criteria for work permits:
The work permits minimum wages have changed.
Social contributions
The annual maximum social wage as per January 2023 is EUR 66.956,00 (2022: EUR 59.706,00)
Adequate Pension
The Employer’s contribution to the Adequate Pension by law per January 2023 is 15.7% of the gross salary (2022: 15,8% ).
The maximum pensionable salary per January 2023 is EUR 128.810,00 (2022: 114.866,00).
The AOW franchise per January 2023 is EUR 16.322,00 (2022: EUR 14.802,00).
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.
Tax Rates
Personal income tax
The top rate for personal income tax will remain at 49.5%.
The basic rate for income up to EUR 3,031 will be reduced from 37.07% to 36.93% as of January 1, 2023.
Claiming mileage
The untaxed claiming mileage increases from EUR 0,19 to EUR 0,21 per kilometer in 2023. It is up to the Employer to also implement this in the Employee’s terms of employment. This is not mandatory.
Untaxed home office allowance
The untaxed home office allowance increases from EUR 2,00 to EUR 2,15 by day in 2023.
Immigration costs
Highly Skilled Migrant or EU Bluecard Permit, initial or extension: EUR 350,00 (2022: EUR 345,00)
Dependent spouse/partner permit, initial or extension: EUR 210,00 (2022: EUR 207,00)
Dependent child permit, initial or extension EUR 70,00 (2022: 69,00)
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 2023:
Sick pay insurance: 1,50% (2022: 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.
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