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20 oktober 2022

Financial and work-related changes for expats in the Netherlands in 2023

Every year, the Dutch government announces new policies and changes during Prinsjesdag (Budget Day). This year was no different, with a range of financial and work-related changes being introduced that will affect expats in the Netherlands. Dutch Employer of Record is an expert in expat services in the Netherlands. We made an overview of what you need to know.

Under here a list of changes in regulations per 2023 for expats in the Netherlands

General 

Minimum wage

The minimum wage in the Netherlands will be increased by 8,05% starting January 1st, 2023. The increase in the minimum wage in 2023 will influence the state pension (AOW), because that benefit will also increase by 8,05%.  

Net allowance for working from home

For employees working remotely from home, the employer currently may compensate his employees a net allowance of € 2,- per working day from home. In 2023 employees will benefit from a possibly higher allowance of € 2,13 per working day from home. The definite details and the amount will be published sometime in November. 

Net commute reimbursement

For work-related commuting, an employer may currently reimburse a net amount of € 0,19 per kilometer. From January 1st, after 16 years the commute reimbursement by employers will be increased. The increase of € 0,02 brings the total net reimbursement to € 0,21 per kilometer.   

In 2024 an additional € 0,01 will be added up on top of the previous year’s allowance of € 0,21 to bring the total net commute allowance to € 0,22 per kilometer. 

(Highly Skilled) Migrants

Implementation revision European Blue Card

The Blue Card is the European highly skilled migrant scheme and regulates the conditions for entry and residence of highly skilled migrants in the European Union. On November 27, 2021, a revision of the Blue Card guideline came into effect. The Guideline has less strict access criteria than its predecessor and more flexible options for using intra-EU mobility. The Ministry of Justice together with the Ministry of Security are working towards the implementation of the guideline of the European Blue Card, which must be transposed into Dutch legislation and regulations by November 2023 at the latest. 

Mandatory provision of Dutch lessons to Migrants

On January 1, 2022, the bill to amend the Foreign Nationals Employment Act came into effect (including the maximum duration of work permits from 1 to 3 years). During the discussion of this bill, an obligation was included for employers to offer labor migrants lessons in the Dutch language. The target date for implementation is January 1, 2023. 

30% facility

The 30% facility for employees who come to the Netherlands from another country to work here (incoming employees) will be adjusted. These extra costs of these employees are under certain conditions not subjected for taxes by applying the 30% facility, with which an employer can reimburse a maximum of 30% of the “wage” of an incoming employee tax-free. 

From 1 January 2024, this regulation will be limited to the maximum wage amount (Balkenende-norm). In 2022 this amounted to € 216,000 per year. Capping within the 30% facility is, therefore, applicable if the base for the 30% facility is higher than € 216,000. 

Pension

State pension age in the Netherlands

In 2023, the state pension age will be 66 years and 10 months. This is 3 months in addition compared to the current year. For the years 2025 to 2027, the state pension age has now been set at 67 years.  

Bill Revision of lump sum (bedrag ineens)

On January 12, 2021, the amount of lump sum (bedrag ineens), RVU and leave savings law was adopted. The so-called ‘lump sum’ is a maximum of 10% of the total pension entitlements that may be withdrawn on the retirement date. Due to technical implementation problems, the entry into force of the lump sum part of the law has been postponed. But the problems seem to have been solved, so the Dutch government will put this part into effect with an Order in Council on 1 July 2023. 

Need advice? Dutch Employer of Record can help

Overall, there are a few changes coming into effect in 2023 that will affect expats in the Netherlands. These changes concern for example the minimum wage, pension and financial reimbursements for commuting, language lessons, and the 30% facility. Although the details are not yet completely finalized, it is important to be aware of what is changing so that you can prepare for these changes. If you have any questions or need assistance, please contact Dutch Employer of Record, the specialist in expat services the Netherlands. We can help you navigate these changes and ensure that you or your business are compliant with all the new regulations.

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