Employment law changes
Minimum wage
As of 1 January 2024, employers are required to pay employees aged 21 and above, at least the minimum hourly wage of EUR 13.27. The introduction of a minimum hourly wage instead of a minimum daily, weekly or monthly wage ends the situation where employees working 40-hours per week have a lower hourly wage than employees working at a company where a 36-hour work week is the full-time norm. For employees under 21 years old, fixed youth minimum hourly wages apply.
Increase in untaxed travel allowance and home working allowance
As of 1 January 2024, the untaxed kilometer allowance for travel expenses has raised from EUR 0.21 to EUR 0.23 per kilometer. In addition, The tax-free home working allowance has increased from EUR 2.15 to a maximum of EUR 2.35 per day.
Increase in maximum transitional compensation
In 2024 the maximum transitional compensation will be capped at EUR 94.000 gross, compared to EUR 89.000 gross in 2023 or, if an employee’s annual salary surpasses this amount, the transitional compensation will be capped at one annual salary.
Change in pension age (AOW)
The state pension age has increased from 66 years and 10 months to 67 years from 1 January 2024. Besides, as a result of new pension legislation, employees will start accruing pension from the age of 18 instead of 21.
Whistleblower protection act
The Whistleblower Protection Act came into force for ‘large’ employers (employing at least 250 employees) on 18 February 2023. On 17 December 2023, the law became applicable to medium-sized employers as well (employing between 50-249 employees). The Whistleblower Protection Act requires employers to draw up a procedure for reporting suspected abuse within the organization.
Mandatory Co2 registration for employers
As of 1 July 2024 organisations with 100 or more employees must report on their employees' work-related travel. The report should include details on the total kilometers travelled, vehicle type, and fuel type. In case of non-compliance enforcement actions may be taken.
Legislative proposal regarding false self-employment
The legislative proposal Clarification of the Employment Relationship Assessment and Legal Presumption (Wet verduidelijking beoordeling arbeidsrelaties en rechtsvermoeden) aims to clarify the difference between an employee and independent contractor.
It is anticipated that this proposal will be presented to the Dutch House of Representatives in the second quarter of 2024 and potentially enters into force in the summer of 2025.
We will keep you updated about the implementation of these measures and are happy to answer any questions about what these measures could mean for your business.
Authored by Maria Benbrahim.
