As we entered the second half of 2025, team Savvy is pleased to share our latest newsletter. This newsletter includes confirmed legislative changes as well as anticipated developments that could impact your organization. Stay ahead with the latest insights and prepare for what is next!
New minimum hourly wage July 2025
On 1 July 2025, the Dutch government increased the hourly wage by 2.42%, bringing the minimum hourly wage to € 14.40 gross per hour for employees 21 and older.
Transition allowance compensation only for small employers
When dismissing an employee, in many cases employers are obliged to pay a transition allowance (transitievergoeding in Dutch). In cases where an employee is dismissed after (at least) two years of illness, employers may currently apply for compensation from the Employee Insurance Agency (UWV).
From 1 July 2026, only employers with less than 25 workers can apply for the compensation of transition allowance.
Free day care
The Dutch Government aiming to make day care (almost) free of charge, but due to the day care sector also experiencing staff shortage, this bill has been delayed again until 2029.
30% ruling down to 27%
The tax advantage of the 30% ruling (expat scheme) will decrease. Starting the year 2027, it will no longer be the 30% ruling, but the 27% ruling.
There will be a transition period, depending on the start date of the ruling:
- The ruling started before 1 January 2024: employer can pay the employee a maximum of 30% of their wages tax-free for a period of 5 years.
- The ruling started after 1 January 2024:
- In 2024, 2025, and 2026, employers are allowed to pay the employee maximum of 30% of their wages tax-free. .
- From 1 January 2027, the employer pays the employee a maximum of 27% of their wages tax-free.
The salary criteria for the 30% ruling for 2025 remains:
- The annual taxable salary for an employee must be more than € 46.660,- (2024: € 46.107,-).
- The annual taxable salary for an employee with a qualifying master degree and who is younger than 30 years, must be more than € 35.468,- (2024: € 35,048,-).
The 30% tax ruling cap for 2025 is € 246.000,- (2024: € 233.000,-).
Temporary employment agencies must be certified
Agencies must have authorisation to operate, to combat abuse such as underpayment and market distortion. They will be regularly checked if they meet the conditions. If a temping agency loses its authorisation, it can no longer operate as a temporary employment agency. Companies that hire temporary employees from agencies without authorisation can be fined.
Although this regulation is expected to come into effect on 1 January 2027, Savvy Group is proud to be a certified and fully compliant agency, meeting all quality and legal standards for many years. You can rely on us for staffing solutions that meet all compliance requirements.
Mandatory confidential counsellor
In our previous newsletter, we highlighted this upcoming regulation, which currently does not yet have a confirmed effective date. Companies with more than 10 employees most likely will be required to appoint a confidential officer. This designated person will serve as a point of contact for employees experiencing undesirable behaviors in the workplace.
We offer a certified confidential counsellor service for an annual fee of €30,- per employee (ex. VAT). This includes designation of Savvy as your official confidential counsellor; support is billed additionally at our standard hourly rate. For more information, please contact your contact person from our team.
Mandatory code of conduct for inappropriate behaviors
Employers with more than 10 employees will be required to implement a code of conduct to prevent improper behaviors in the workplace. This includes misconduct such as bullying, sexual harassment, discrimination, aggression, and violence by colleagues or management.
The code of conduct must clearly define acceptable and unacceptable behaviors during work. In addition, employers must actively inform employees about these rules to ensure clarity and consistency across the organization. While businesses have the flexibility to tailor the code to their specific context, it must meet certain minimum legal requirements. The intended effective date for this change is from 1 July 2026.
To support you prepare for this upcoming obligation, our HR Savvy team can provide you with a compliant and well-aligned code of conduct tailored to your company’s culture and needs.
Flexibility in reintegration obligations
The bill to amend employers’ reintegration obligations in the second of illness allows Small and Medium-sized Enterprises (SMEs) to – if certain requirements are met – replace sick employees in their second year of illness. However, the effective date of this change is not yet determined.
Worker classification enforcement
In our previous newsletter, we have mentioned that it is crucial to ensure the work agreement with a self-employed worker does not seem like a disguised employment contract. It aims to prevent false self-employment.
The Dutch Tax Authority (Belastingdienst) has lifted the enforcement moratorium under the Employment Relationships Deregulation Act (Wet DBA), effective on 1 January 2025. They can now conduct retroactive assessments and demand payments for:
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- Unpaid payroll taxes
- Social security contributions
- Potential penalties for misclassified workers
Compliance strategies we suggest:
- Contractor Agreement Audit: Review all freelancer and ZZP (self-employed) contracts.
- Clear Work Relationship Documentation: Define job roles and responsibilities within agreements.
- Utilize Model Agreements: Use the Dutch Tax Authority’s official templates for compliance verification. Official templates are available at: Belastingdienst Model Agreements.
Failure to comply may result in significant penalties. You need to ensure that all independent contractors meet the legal criteria for self-employment.
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