As the new year just started, Savvy is delighted to present the annual newsletter, designed to keep you well-informed regarding all the (Expected & Actual) developments 2025 will bring.

New Statutory Minimum Hourly Wage

Per January 1, 2025 the Dutch government increased the hourly wage. The hourly wage of for employees that are 21 years old or older, equals a gross monthly salary excluding holiday allowance of € 2.437,07 based on a 40 hour work week.

Source: Rijksoverheid 2025

New salary requirements for Highly skilled migrants 2025

The salary requirements for highly skilled migrants and European Blue Card holders for 2025 have been announced and are as follows

  • Highly skilled migrant of 30 years and older: € 5.688,-
  • Highly skilled migrant younger than 30 years: € 4.171,-
  • Highly skilled migrant who is eligible for the reduced salary requirement: € 2.989,-
  • European Blue Card holder: € 5.688,-

These are the minimum required gross monthly salaries excluding holiday allowance. The salaries for highly skilled migrants and Blue Card holders must also be at market level at all times and should be paid on a monthly basis. The salary requirement is only applicable in case of a new application, or a prolongation.

New changes regarding 30% ruling

The salary criteria for the 30% ruling for 2025 are:

  • 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,-). 

In 2025 and 2026, the tax-free proportion will stay at 30%. Beginning in 2027, the tax-free proportion will be decreased to 27% for the length of the ruling. 

Bogus Self-Employment

The Vbar, Clarifying Assessment Labor Relations Act, is a legislative bill expected to be enforced in 2026.  This Act should clarify what is considered employment according the Dutch Civil Act. Currently the norm determining if someone is employed or self-employed is predominantly based on case law instead of the actual Act. The new norm under the actual Act will likely be assessed according to three standard criteria, these being:  

  1. Work content subordination; 
  2. Organizational embedding; and 
  3. Working for one’s own account and risk. 

As of the January 1, 2025 the Dutch tax authorities (Belastingdienst) have enforced the Employment Relationships Deregulation Act (DBA Act). The tax authorities will actively enforce bogus self-employment. The DBA Act goes hand in hand with the Vbar. 

Transition allowance

In the event of an involuntary termination, the transition allowance was capped at € 94.000,- in 2024. The maximum transition allowance increased to € 98.000,- for 2025. 

National Holidays

Upcoming changes

The Protection Whistleblowers Act

In February 2023, the Protection Whistleblowers Act went into force in part. The legislation allows for anonymous reporting of misbehavior to employers, although this legislative reform has not yet taken effect. The proposed regulation establishes what requirements must be followed for the internal reporting method for anonymous reporting of abuse to the employer. The law also establishes criteria for the officers who handle the anonymous reports. The government’s consultation on this topic is not yet complete nor is it definite that the anonymous reporting will be added to the current Act.

Wise use of non-competition clause

There is discussion about the modernization of the non-competition clause. The plan aims to prevent employers from using the non-competition clause for unnecessary purposes, such as binding employees to themselves. The law stipulates that the new standards would not apply to terms agreed upon before the January 1, 2025.

Compensation transition allowance

Starting the April 1, 2020, companies are compensated for the transition allowance cost incurred when terminating a two-year sick employee. From the July 1, 2025 the compensation will only be applicable to small companies with less than 25 employees. Employers with 25 or more employees will no longer be compensated.

Fairer Income Act

The Fairer Income Act bill proposes that the minimum wage will increase 5% annually. The end goal is for the minimum wage to be 60% of the average wage. Along with the rise of the minimum wage, it is proposed that benefits and pension will also rise proportionally.

Modification of reintegration obligations in the second track

The bill amending the reintegration obligations in the second year of illness should enable small and medium-sized employers to replace sick employees in their second year of illness. Currently employers can’t replace sick employees until at least after two years of illness. This bill will probably be introduced to the House of Representatives around the third quarter of 2025.

New bill “Staff Retention at Crisis”

The cabinet is working on the bill Staff Retention at Crisis. That law will allow employers to retain their employees during crises (which fall outside the regular business risk), by temporarily reassigning them within their company. Employers can also temporarily reduce the working hours and apply for a wage subsidy.