13 Regulation Changes To Take Note Of in 2024

In the Netherlands, there are several important annual dates to keep in mind regarding rule and regulation changes. These usually come on the 1st of January, the 1st of April, and the 1st of July each year, and impact minimum wage, taxes, benefit criteria, and many other areas of Dutch legislation and regulation. Here, you can find an overview of some important changes that will take place on the 1st of January 2024.

Please note: This article was written on the 14th of December. While we strive to offer accurate and up-to-date information, some rules mentioned may be subject to change. Delays have occurred due to the general election in October. It is recommended to verify the latest updates on the relevant government pages

1. Minimum Wage

In 2024, there will no longer be a minimum monthly wage but instead will be calculated on an hourly basis. The new minimum wage will be €13.27 euros per hour. 

2. Income Tax

The lower income tax rate will rise from 36.93% to 36.97%. The top income tax rate will remain unchanged, at 49.50%.

If you pay income tax in box 2, meaning you are a partner, in a partnership, or a director/major shareholder with a substantial business interest, or if you pay dividends on your profit to shareholders then there will be 2 rates for 2024:

• Base rate of 24.5% for income of up to €67,000
• 33% of any income higher than that

3. 30% Ruling For Highly Skilled Migrants

Employers who hire highly skilled migrants can no longer provide unlimited tax-free reimbursement for the extra costs your employee makes as a result of their moving to the Netherlands. 

The percentage of the 30% ruling will be reduced over 5 years so that:

• For the first 20 months, you may pay 30% of the salary tax-free
• The first 20 months after that, you may pay 20% of the salary tax-free
• The 20 months after that, you may pay 10% of the salary tax-free

The minimum income requirements for applications for the highly skilled visa have also changed. Visit our article about these changes to learn more.

4. Tax-Free Business Travel

Employers will no longer have to deduct wage tax from employees' wages if they pay them back for the costs of a public transport card in these following circumstances:

• They supply the card: they buy the public transport card and their employee is the owner and uses the public transport card for business travel.
• They pay back the public transport card: their employee buys and owns the public transport card and they pay them back the costs. The employee uses the card for business travel.

The tax-free travel allowance will also go up 0.23c per kilometre. Employers can refund their employees' travel costs free of tax. 

5. Private Business Ownership Allowance Decreased

For self-employed professionals who are entitled to the private business ownership allowance, the amount they can deduct from their profits is decreased to €2,470.

6. SME profit exemption reduced

The SME profit exemption for small and medium-sized enterprises will be reduced. It was 14% in 2023 and will now be 12.7% SME profit exemption from their profits on their income tax return. 

7. Excise Duty on Alcohol Increases

The excise duty on beer, wine, and other alcohol beverages will increase by 8.4% 

8. Healthcare

Maternity care, known as 'kraamzorg' will now be available to families with a new child for up to six weeks after welcoming the child. This is an increase from 10 days after delivery last year.

9. Childcare Subsidy

Partial reimbursement for kindergarten and childcare costs will increase. In kindergartens, the maximum subsidy will be 10.25 euros per hour. In after-school care it will be €9.12 per hour and for other options it will be €7.53 per hour. This is a rough increase of 9% from last year.

The budget for child support assistance for low-income families will increase. The maximum increase for an only child will be 750 euros per year, for the second and subsequent children the maximum increase will be 883 euros per year. This depends on the income of the parents and the age of the children. 

For children under 12, the maximum increase will be 694 euros per year and for children from 12-17 years it will be a maximum of €924.

10. Rent Allowance Benefit

The maximum benefit increase will be €416 per year and the income limit for receiving this benefit is raised by €1250.

11. Pension

The four major pension funds will all increase payouts next year. ABP will increase by 3%, PME by 3.26%, and PFZW will increase by 4.8%. PGB pension holders will see a 5.2% increase.

12. Student Loans

The interest rate for student loans is increased to 2.56%. 

13. Flight Tax

Airline passengers will pay a flight tax of €28.58 next year per flight.