Savvy newsletter 2026 January - Savvy Europe B.V.

Savvy Newsletter 2026

As we kick off 2026, team Savvy is delighted to bring you our latest newsletter. This edition highlights confirmed legislative changes as well as upcoming developments that may impact your organization in the year ahead.

Stay informed with our latest insights and be prepared for what lies ahead.

New minimum hourly wage January 2026

On 1 January 2026, the Dutch government increased the hourly wage by approximately 2.15%, bringing the minimum hourly wage to € 14,71 gross per hour for employees 21 and older.

Age	Gross hourly minimum wage
21 years and older	€ 14,71
20 years	€ 11,77
19 years	€ 8,83
18 years	€ 7,36
17 years	€ 5,81
16 years	€ 5,07
15 years	€ 4,41
Source: Rijksoverheid 2025

The table above is published by the Dutch government. If you would like insight into how these hourly minimum wages translate into a full-time monthly or annual gross salary, please do not hesitate to reach out to your contact person at Savvy to have a clear picture of what this means in practice.

New required gross monthly salary thresholds for Highly Skilled Migrants and EU Blue Card holders

The tables below show the required gross monthly salary thresholds, excluding holiday allowance, that will apply from 1 January 2026 for highly skilled migrants and EU Blue Card holders. Please note that these new salary thresholds apply only to new applications submitted from 1 January 2026 onwards and do not affect employees who already hold a valid residence permit.

Highly skilled migrant	Gross monthly salary (excl. holiday allowance)
30 years old and above	€ 5.942,-
Under 30 years old	€ 4.357,-
Reduced salary criteria	€ 3.122,-

EU Blue Card	Gross monthly salary (excl. holiday allowance)
Regular salary criteria	€ 5.942,-
Reduced salary criteria	€ 4.357,-

Expat scheme (30% ruling) – upcoming changes from 2026 and 2027

As of 1 January 2026, the new salary requirements to be qualified for the 30% ruling has been confirmed as follows:

The annual taxable salary for an employee must be more than € 48.013,- (2025: € 46.660,-).
The annual taxable salary for an employee with a qualifying master degree and who is younger than 30 years must be more than € 36.497,- (2024: € 35.468,-).

From 1 January 2026, the 30% ruling will be capped at the WNT standard (also known as the Balkenende standard) for all employees, including the employees who are currently having the applicable 30% ruling. The transitional arrangement will expire on that date and can no longer be applied. For 2026, the WNT standard is set at € 262.000,-. This means the 30% tax-free allowance may only be calculated on a maximum salary of € 262,000,-. Any salary above this threshold will not qualify for the tax-free expat allowance. Employers are advised to inform affected employees in a timely manner to avoid unexpected financial consequences.

As we have informed you in our previous newsletter, the tax advantage under the 30% ruling will be reduced from 2027. From 1 January 2027, employers may reimburse a maximum of 27% of salary tax-free, instead of 30%.

The exact impact depends on when the 30% ruling started. For rulings that started before 1 January 2024, the current rules continue to apply. For rulings starting on or after 1 January 2024, the reduction to 27% and higher income threshold will apply from 2027.

A lower income threshold remains in place for employees under 30 years old with a master’s degree, although this threshold will also increase from 2027.

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). Additionally, the employers may be eligible for this compensation in cases where employees are laid off due to a business closure.

From 1 July 2026, only employers with less than 25 workers can apply for the compensation of transition allowance. Employers with 25 or more employees will no longer receive compensation.

If you are unsure whether your company qualifies to apply for this compensation, please feel free to reach out to your contact person at Savvy—we are happy to support you and guide you through the process.

First bracket of the work cost scheme (WKR, werkkostenregeling) is increasing

The WKR allows employers to reimburse, provide or grant certain benefits such as gift vouchers and Christmas gift to employees tax-free.

For the first bracket (wage bill up to € 400.000,-), the tax-free allowance has gradually increased over recent years. As of 2025, the percentage increased from 1.92% to 2.00%, and this rate continues to apply in 2026. With effect from 1 January 2027, the allowance will increase further to 2.16%.

For wages exceeding the € 400.000,- threshold, the lower percentage currently at 1.18% will remain unchanged. This increase gives employers more scope to offer tax-free allowances and benefits without triggering the 80 % final levy.

Additionally, the standard amount under the Work Costs Scheme (WKR) for a lunch or other meal at the office has increased. As per 1 January 2026, the standard amount is € 4,05 per meal (€ 3,95 in 2025).

Work from home allowance

When employees work from home, they have additional costs that they do not have at the office. More costs for heating, water, electricity, and also tea, coffee and toilet paper. Employer can reimburse these costs tax-free with a working-from-home allowance (thuiswerkvergoeding). The amount is indexed annually. As of 2026, the allowance is set at € 2,45 per working-from-home day (€ 2,40 per day in 2025).

Travel allowance

Although it is not compulsory (unless stated in the CAO), it is common in the Netherlands that the employer will cover the employee’s travel expenses. In 2026, the employer may reimburse their employees € 0,23 per kilometre tax-free. This amount is not regarded as salary by the Netherlands Tax Administration (Belastingdienst). Hence, the employers do not withhold payroll taxes over it.

Zero-emission company cars

As of 2027, all company cars that employers make available to employees must be completely emission-free. If an employer nevertheless provides cars that are not completely emission-free, the employer will be ‘fined’ with a pseudo-final levy of 52% on the basis for the additional tax liability for private use of the car. Any personal contribution by the employee will not be taken into account.

The effective date of this change is expected to be on 1 January 2027.

Reporting obligation for personal mobility abolished for SMEs

The reporting obligation for work-related mobility will be relaxed for smaller employers. Companies with more than 100 but fewer than 250 employees will no longer be required to report data on commuting and business travel.

Going forward, the obligation will apply only to organisations with 250 or more employees, significantly reducing the administrative burden for SMEs.

Further details of the regulatory change are still pending. The intended start date is before summer 2026, subject to confirmation.

Wage transparency and equal treatment obligations

The Wage Transparency Bill aims to reduce the pay gap between women and men by increasing pay transparency.

While equal pay is already required by law, the Bill includes various measures to combat unequal pay more effectively, as follows:

Employers with more than 250 employees will be required to apply for a certificate that shows that the organisation pays men and women equally. There will be a heavier burden of proof for those employers without certification.
Employers will have a duty to inform the works council about potential pay differences for employers with more than 50 employees.
Employers with more than 50 employees will be required to provide information on any pay differences in their management report and/or annual report.
If an employee believes that there is unequal pay at the organisation, the employee will in the first instance file a complaint directly with the employer. If the employer does not respond to the employee’s complaint within two months or, in the employee’s opinion, the complaint is not properly dealt with, the employee will be able to approach the Netherlands Institute for Human Rights.
The Social Affairs and Employment Inspectorate will monitor compliance and will be authorised to revoke or suspend a certificate under certain circumstances and to impose fines to a maximum of € 90.000,-. In case of a repeated offence, this amount may be increased.

The bill implements the EU Pay Transparency Directive. Although the EU deadline is 7 June 2026, implementation in the Netherlands is delayed.The intended effective date is 2027.

Simplification of leave system

According to the Social and Economic Council of the Netherlands (SER), the current leave system has been going through various changes in recent years that it has become extremely complicated, with unclear funding arrangements. Therefore, the proposal follows advice from SER and groups leave into three clear categories:

Leave related to the birth of and care for children
Leave to care for loved ones
Personal leave

The bill was originally scheduled for online consultation at the end of 2025, but this deadline was not met. The current aim is for the simplified leave system to enter into force on 1 July 2027, although this will depend on decisions by the next government.

Clarification of the difference between employee and self-employed people (Vbar)

In our previous newsletters, we have informed you about the enforcement of employee classification from the Tax Authorities. it is important 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.

Tax Authorities can conduct retroactive assessments and demand penalties for misclassified employees. Employers need to ensure that all independent contractors meet the legal criteria for self-employment.
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.
If the VBAR comes into effect, employers and independent contractors will need to test their working relationships against the criteria set by the new rules.

This change is expected to be effective starting from 1 July 2026. Our Savvy experts are ready to support you and walk you through each step. We can assist with conducting the required audits, reviewing and updating documentation, creating self-employment contracts and ensuring your company is fully compliant.

More security for flexible workers

The new Flexible Workers (Increased Security) Act (Wet verbetering zekerheid flexibele arbeidskrachten, in Dutch) introduces enhanced rights for flexible workers. It contains several measures that provide more certainty for flexible workers about their income and working hours, and to reduce differences between flexible and permanent employment.

Under the proposal, temporary agency workers will be entitled to employment conditions at least equivalent to those of employees directly employed by the hiring organisation. In addition, the initial phases of temporary agency employment during which workers can be dismissed at short notice or face uncertainty about working hours will be shortened from 18 months to 12 months. These changes are intended to provide greater job security for temporary workers and to reduce the risk of exploitation, including among migrant workers.

In addition, stricter rules will apply to fixed-term contracts. Currently, employers may offer up to three fixed-term contracts within a period of three years, after which a break of six months is required before starting a new chain. Under the proposal, this mandatory break will be extended to five years. Only limited exceptions will remain possible through collective bargaining agreements.

Zero-hour contracts will be abolished. Employees who currently work on an on-call basis will instead receive a basic contract reflecting the minimum number of hours they are generally scheduled to work, giving them greater predictability. These contracts will take the form of bandwidth contracts, which specify minimum and maximum hours, with a maximum difference of 130%. This means that with a minimum of 10 hours, the maximum is 13 hours. This provides employees with clearer expectations about their income and working schedules. On-call contracts will remain possible in limited cases, such as for minors and students with part-time jobs.

The legislation is expected to come into effect from 1 January 2027.

Mandatory code of conduct for inappropriate behaviour

Employers with more than 10 employees will be required to implement a code of conduct aimed at preventing inappropriate behaviour 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 behaviour at work. Employers must also actively inform employees of these rules to ensure clarity and consistent application across the organisation. While employers have flexibility to tailor the code to their specific context, it must meet certain minimum legal requirements. The intended effective date of this obligation is 1 July 2026.

To help you prepare for this upcoming requirement, our HR Savvy team can support you by providing a legally compliant code of conduct that is well aligned with your organisation’s culture and needs.

Temporary employment agencies must be certified

Temporary employment agencies must be certified and authorised to operate in order to combat abuse such as underpayment and market distortion. Agencies will be regularly audited to ensure they continue to meet all required conditions. If a temporary employment agency loses its authorisation, it may no longer operate. Companies that engage temporary workers through unauthorised agencies may be subject to fines.

Although this regulation is expected to come into effect on 1 January 2027, Savvy Group is proud to already be a certified and fully compliant agency, having met all quality and legal standards for many years. You can rely on us for staffing solutions that fully comply with all applicable regulations.

Environmental, Social and Governance report

Since 1 January 2024, large companies with more than 500 employees must report on ESG topics (Environmental, Social & Governance) under the Corporate Sustainability Reporting Directive (CSRD), including diversity, gender equality, employee rights, volunteering, and the use of flexible workers.

The new regulation requires that listed small and medium-sized enterprises (SMEs) will also have to comply. Because of the delay in approval, In general, the report must adhere to the European Sustainability Reporting Standards (ESRS). These standards define what you must report on depending on your business sector, the size of your company and other factors. The topics that are commonly included in this report are CO2 emissions, employees, the purchasing process, finances, housing, mobility and business strategies.

This change is expected to occur step-by-step. For financial years starting on or after:

From 1 January 2028 large companies must comply with the new reporting requirements for financial years starting on or after 1 January 2027, if they meet at least 2 of the 3 criteria:
- they have a net turnover of more than €50 million
- they have a balance sheet total exceeding €25 million
- they have more than 250 employees
From 1 January 2029 listed SMEs must meet the reporting requirements for financial years from 1 January 2028.
Later on, non-EU businesses that fall under the CSRD on a consolidated basis will have to report.

Rules for using a non-compete clause tightened

The government plans to tighten the rules on non-compete clauses. Non-compete clauses are increasingly included in employment contracts without a clear necessity, limiting employee mobility and making it harder for employers to attract talent. The proposed changes aim to restore balance.

Under the proposal, a non-compete clause may apply for a maximum of one year after the employment contract ends. Employers must clearly define and justify the geographical scope of the restriction. In addition, employers will be required to substantiate the business interest for using a non-compete clause not only in temporary contracts, but also in permanent contracts.

Another important change is the introduction of mandatory compensation. Employers who apply a non-compete clause must compensate the employee with 50% of the employee’s last monthly salary for each month the clause is in effect. For example, a six-month non-compete clause would entitle the employee to compensation equal to three months’ salary.

These changes will apply to all employers with staff.

The effective date of this change is not yet determined.

New obligations for small- and medium-sized employers for the reintegration of sick employees

Under Dutch labour law, employers and sick employees have mutual obligations during the first 104 weeks of sickness. First-track reintegration focuses on helping an employee return to their original job within the company, while second-track reintegration involves finding work with another employer.

A new Bill introduces more flexible rules for small- and medium-sized employers (as defined in the Social Insurance (Funding) Act). Under this Bill, these employers may focus earlier on second-track reintegration for sick employees.

For eligible employers, second-track reintegration must start in the second year of illness. It is only allowed when the first track is formally completed, which can happen in two ways:

the employee gives written consent, or
the Employee Insurance Agency (UWV) grants approval.

The bill amending the reintegration obligations in the second year of illness is intended to give small and medium-sized employers more flexibility to replace sick employees during their second year of illness. The bill was initially scheduled to take effect in 2028, but implementation has been postponed until at least 1 January 2030.