Employee Benefit update Netherlands

by Alexander Beard, on Nov 21, 2018 9:10:33 AM

30% Ruling

The Dutch Government has announced that the ruling will be adjusted. The 30% ruling used to be valid for a period of 8 years, however the Dutch government has decided to decrease the maximum years that the ruling can apply to 5 years. The new time limit will apply to new and existing beneficiaries of the tax break. This means that those who anticipated on the full 8 years see the term that they can use this Tax break being limited to 5 years.

The government’s decision has resulted in a lot of negative feedback from the market. Some of The Netherlands’ biggest tech companies, Adyen, Booking.com and TomTom have written to the tax minister to rethink the cut back plans.

More information on the 30% ruling? Please contact us!

Health and Disability

Changes in the Working Conditions Act have been implemented per 01-07-2017. There is a transition period until 01-07-2018 for companies to meet the new requirements. This transition period has now ended. It is recommended that companies review if the contract with their health & safety service provider has been adjusted to meet the new requirements.

The changes mainly impact the current relationship with the occupational health & safety service provider (Arbodienstverlener).

Every employer needs to have a basic contract with their occupational health & safety service provider which contains several minimum requirements such as;

-              The requirements for prevention of occupational diseases and long-term absence;

-              The rights and obligations of the company doctor and how these can be safeguarded;

-              Rights of employees in relation to health & safety;

-              Rights of employees for a second opinion and the complaints procedure.

The new legislation also introduces the right of the Works’Council for approval to the person to be chosen to acts as occupational health and safety officer.

Minimum wage

The government adjusts the amount of the minimum wage twice a year – on 1 January and 1 July – in line with changes in average collectively agreed wages in the Netherlands.

The minimum wage as of 1 July 2018 for 22 and older will be € 1.594,20 per month.

Paternity Leave

The Dutch Government has decided to extend the minimal leave for Paternity Leave to 5 working days per 01-01-2019. This is currently 2 days.

Bram Bogaard
Managing Director: Europe - AB International Benefits B.V.