Insights

Changes in the HR field as of January 1, 2024

Attention employers! In addition to the previously announced (expected) legislative changes (read on our website) the following rules in the HR field have come into effect as of January 1, 2024.

Maximum daily wage

  • As of January 1, the maximum daily wage is €274.44 gross, equivalent to €5,969 gross per month.

Statutory transition (severance) payment:

  • In 2024, the maximum statutory transition (severance) pay is €94,000 gross or an annual salary if it exceeds the legal maximum.

State pension (AOW) age:

  • The state pension (AOW) age increases to 67 years in 2024. As it stands, this age remains unchanged until (at least) 2028.

Home working allowance

  • The tax-free home working allowance increases to a maximum of €2.35 per day that the employee works from home. It is an optional allowance.

Employment cost scheme:

  • In 2024, the free space in the employment cost scheme is 1.92% of the first €400,000 of the fiscal wage bill. The free space for the remaining wage bill remains unchanged, at 1.18%.

Travel expense reimbursement

  • The tax-free travel expense reimbursement increases to a maximum of €0.23 per km in 2024.
  • Moreover, it has become easier for employers to provide employees with a public transportation card:

o   Employers do not pay income tax on a public transportation allowance if the employee also uses the subscription (partly) for business purposes (e.g., commuting). Previously, income tax was due if it was found that an employee did not use the public transportation card sufficiently for business purposes.

o   There are fewer administrative obligations.

o   Employers do not pay income tax on a public transportation allowance if the employee also uses the subscription (partly) for business purposes (e.g., commuting). Previously, income tax was due if it was found that an employee did not use the public transportation card sufficiently for business purposes.

Whistleblowers:

  • Since December 17, the Whistleblower Protection Act has also come into effect for medium-sized employers (between 50 and 250 employees). The rules apply to both private and public employers.
  • More details about the new rules? Read further here.

Labour & Care Act

  • For the calculation of the allowance during supplementary paternity leave and paid parental leave, as of January 1, 2024, a working time of 36 hours per week is assumed.

Maximum remuneration Act on the Standardization of Top Incomes (‘WNT’)

  • The maximum remuneration of the WNT has been increased to €233,000 gross for 2024. This maximum applies to top executives in the (semi) public sector.

30% ruling:

  • The 30% ruling for expats is limited to the remuneration maximum of the WNT (see above) as of January 1, 2024. The percentage of 30% is also gradually reduced:

o   30% for the first 20 months;

o   20% for the following 20 months;

o   10% for the last 20 months.

Pension accrual:

  • As of January 1, 2024, the entry age for pension accrual has been lowered from 21 years to 18 years due to the implementation of the Future Pensions Act.

Model Agreement for free replacement of the Dutch Tax Authorities:

  • The Tax Authorities have withdrawn approval for model agreements based on free replacement as of January 1, 2024. This has consequences for clients and contractors.
  • Want to know more? Read more in our article.

Change in mandatory CO2 registration for work-related personal mobility

Contrary to previous reports, the obligation for employers to register the CO2 emissions of employees will begin on July 1, 2024 (instead of January 1, 2024). In the context of this new registration obligation, employers with more than 100 employees must provide the government with data on the commuting and business travel of employees.

For an explanation of which and how data should be registered, visit the website of the Netherlands Enterprise Agency: https://www.rvo.nl/onderwerpen/rapportage-wpm.

If you have any questions following this message, please contact us on +31 20 305 33 33 / info@bd-advocaten.nl


Aimée Peterse

Published On: 9 January 2024

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