Netherlands Update - May 2022
Work from Home Allowance In order to compensate for these costs, the government announced the new tax-free work from home allowance (thuiswerkvergoeding), which came into effect on January 1, 2022. Under Dutch law, employers can now provide their workers with a tax-free allowance of up to two euros per day.
The draft legislation on the huge pension system reform has been submitted by the Dutch Government end of March. The new Law is expected to come into effect on January 1, 2023.
The upcoming Dutch pension reform will impact all pension schemes, and employers should be informing themselves on the proposed changes and how this will affect their pension plans.
Pension plans will only be allowed based on defined contributions. If there is already a DC plan in place the current age related contribution rates will be replaced by a fixed rate for all employees.
Other important changes are that The current method of calculating the partner’s pension will change. The employer will be able to insure a maximum of 50% of the wage as insured partner’s pension.
We will pro-actively start to inform our clients during 2022 about the upcoming changes.
If you are not a client yet it is important that you start as soon as possible with reviewing your current pension plan. Renewal dates with providers are important as well as the involvement of the works council. Changes might require the employee’s individual consent.
We are happy to be of assistance if you need professional guidance.
Please contact us! Bram Bogaard
C.E.O. - AB International Benefits B.V.