13. Wage expense allowance for elderly employees to be abolished

The wage expense allowance (LKV) is an allowance paid to employers who hire one or more employees from target groups who tend to have difficulty finding work. The LKV for elderly employees is expected to be abolished as of 1 January 2026.

14. Low-income allowance to be reduced

The upper limit of the hourly wage criterion for the low-income allowance (LIV) will be reduced from 125% to 104% of the statutory minimum wage. The proposed effective date of the abolition of the LIV is 1 January 2025. The young person’s LIV will already be abolished as of 1 January 2024. However, the young person’s LIV will still apply in 2024 in respect of the paid hours of 2023.

15. STAP budget to be abolished

The STAP budget will be abolished as of 1 January 2024. The STAP budget is a subsidy of up to €1,000 for taking part in a training programme, course or study programme.

16. Increase in Invalidity Insurance Fund contribution – high rate

The contribution to the Invalidity Insurance Fund [Dutch: Arbeidsongeschiktheidsfonds, “Aof”] is a mandatory deduction at source which the employer pays towards the Invalidity Insurance Fund. A differentiated Aof contribution applies since 1 January 2022. There is a lower contribution for small employers and a higher contribution for medium-sized and large employers. The high Aof rate will go up from 7.11% to 7.49%. The low Aof rate will go up from 5.46% to 6.18%.

17. Maximum amount of transition payment in 2024

The maximum amount of the transition payment is determined annually by the Minister of Social Affairs and Employment. In 2023, the maximum amount was €89,000 gross, or one gross annual salary.

An employee will be entitled to a transition payment if the initiative to terminate the employment was taken by the employer and the employee bears no (significant) blame for the situation. The employer will also owe the employee a transition payment if the employer does not wish to continue the fixed-term employment or termination during the probationary period.

The maximum amount of the transition payment for the calendar year 2024 is not yet known. This will be announced by 1 January 2024 at the latest.

18. Introduction of the statutory minimum hourly wage as of 1 January 2024

As of 1 January 2024, the same minimum hourly wage will apply to everyone, irrespective of whether the employee works 36, 38 or 40 hours per week. The minimum wage based on a working week of 36, 38 or 40 hours will thereby disappear.

The new legislation will ensure a fairer and more transparent minimum wage. At present, the minimum wage for persons working 38 or 40 hours a week is lower than that for persons working 36 hours a week. The new legislation will eliminate this difference.

As of 1 January 2024, the minimum hourly wage for employees of 21 years or older will be €13.27 gross.

The Ministry of Social Affairs and Employment has prepared a knowledge document containing frequently asked questions and example calculations regarding the minimum hourly wage: Kennisdocument wettelijk minimumuurloon 2024 | Publicatie | Rijksoverheid.nl.

19. Draft legislation: Provision of Workers (Accreditation) Act

The bill introducing the Provision of Workers (Accreditation) Act was submitted to the Lower House on 10 October 2023. The purpose of this draft legislation is to obtain a better grip of employment agencies, and in particular to tackle mala fide employment agencies. This draft legislation provides for an accreditation system and in fact introduces a disguised certification obligation for employment agencies.

Among other things, the proposed accreditation system means that:

• the supplier must be listed in the Trade Register;
• the supplier must pay a deposit of €100,000 as financial security. Start-up suppliers pay a deposit of €50,000;
• the supplier must hold a certificate of good conduct for legal entities;
• the supplier must demonstrate periodically that, among other things, it complies with labour legislation and pays the mandatory social security contributions.

Accreditation must be requested from the Ministry of Social Affairs and Employment.

This mandatory accreditation also applies to non-resident suppliers if they provide workers to hirers based in the Netherlands. As non-resident suppliers will be unable, for example, to apply for a certificate of good conduct, this requirement does not apply to non-resident suppliers. Under the draft legislation, a hirer may only use suppliers who have been accredited. It is up to the hirer to ascertain whether the supplier has been accredited. The hirer can check this in the appropriate public register. The Dutch Labour Authority will monitor the ban on borrowing workers from non-accredited suppliers. In this context, the Labour Authority may impose a penalty on both the hirer and the supplier.

The proposed effective date of the accreditation system is 1 January 2026. Please note that this is only draft legislation at the moment, which still needs to be passed by both Houses of Parliament.

20. Compensatory transition payment for business cessation due to employer’s illness – cancelled

In our payroll newsletter for the calendar year 2023, we discussed the compensatory transition payment for business cessation due to the employer’s illness. The intention at the time was to further define this scheme in 2023. The outcome of that process was that this scheme will not be introduced. It turned out to be impossible to give the scheme concrete shape.

21. ‘Work Where You Want’ Bill – not to be enacted

The ‘Work Where You Want’ Bill, providing a stronger statutory basis for working from home, has not been passed by the Upper House. This draft legislation provided that employers could only refuse a change of workplace, requested by the employee, on grounds of reasonableness and fairness.

The Upper House did not pass the bill because the legislation had, in the meantime, been overtaken by reality. There was doubt about the usefulness of the new legislation. After all, many companies have already accepted that employees are (partially) working from home.

The old legislation will now remain in force. If the employee submits a request for a change of workplace, the employer will only have a ‘duty to consider’. However, the employer will be obliged to discuss this with the employee and provide reasons if the request is refused.

Lastly
Please be assured that our organization, the payroll administration department, wage tax and legal teams are happy to help you comply with the changes mentioned above, assist you with the schemes and answer your questions.

We wish you a happy holiday period and look forward to working with you in the new year!

Disclaimer
The information in this memorandum is intended to provide general information to interested parties. The information is not intended as advice. For advice, we recommend that you contact one of our qualified experts. Despite the fact that the greatest possible care has been taken in preparing this contribution, this document may unexpectedly contain incomplete and/or incorrect information. HLB Witlox Van den Boomen, Koenen & Co and PKF Wallast therefore do not accept any liability for this.

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