The Dutch government introduces new initiatives and modifications annually. This year was no exception, as a number of changes affecting expats in the Netherlands were made to the financial and employment environment. Since Your Talent Agency is an expert in this area, we have created a summary of the information you need to know about these adjustments.
What’s new with the IND Rules?
Policy implementation for foreign nationals in the Netherlands is handled by the Immigration and Naturalization Service (Immigratie- en Naturalisatiedienst, IND).
This indicates that all residence permit applications filed by those wishing to relocate to the Netherlands or apply for Dutch citizenship are evaluated by the IND. These persons include those who are fleeing their home country in search of asylum, as well as those who intend to work, study, or visit relatives who already reside in the Netherlands.
New fees will take effect on January 1, 2023. These are the fees associated with the process of requesting to stay in the Netherlands. These are modified yearly in accordance with changes in prices and wages (indexation). The IND is also putting into practice a number of adjustments as of the new year. The cost of certain residency licenses varied greatly and unexpectedly. These changes will equalize the charge and make it more reasonable for the applicant. (*)
To bring someone from overseas to the Netherlands, new international hire must earn a minimum standard amount. Every year on the first of January and the first of July, the Minister of Social Affairs and Employment updates these figures, which are then published in the Government Gazette. The standard amounts have changed as of January 1, 2023. (**)
Next year, the (gross) minimum wage in euros is:
Sounds complicated and lengthy isn’t it? Don’t forget that YTA offers a lot of benefit of registering with the IND through us! From quicker turnover to a bigger candidate pool to recruit from, isn’t it amazing? 😆
How about the 30% Ruling?
The 30% ruling is an income tax advantage for highly skilled migrants working in the Netherlands. It means that up to 30% of your salary is tax-free.
To receive the 30% ruling you must also meet the following requirements:
- International hires are an employee of a company in the Netherlands.
- Candidates have specific professional expertise that is scarce or not available in the Netherlands. Highly skilled migrants are deemed to have such expertise when their income meets the above salary requirements.
- Expats and their employer agree in writing that the 30% ruling applies to their situation.
- International candidates have been recruited or transferred from abroad (and they have lived more than 150 km from the Dutch border for more than 24 months prior to working in the Netherlands.)
30% ruling income requirements for 2023:
- Minimum taxable salary at 70%: 41.954 euros
For employees under 30 with a master’s degree:
- Minimum taxable salary at 70%: 31.891 euros
The 30% ruling for employees (incoming employees) who relocate to the Netherlands to work will be altered. By using the 30% facility, which allows employers to deduct up to 30% of an employee’s “wage” tax-free, these additional expenditures for these employees are under some circumstances exempt from taxes.
Guess what? There is also a new Minimum wage.
The Netherlands’ age-based minimum wage (minimumloon) is updated every six months to reflect inflation. The minimum wage is predicated on an employee working a full-time schedule of 36 to 40 hours per week. Starting on January 1st, 2023, the minimum wage in the Netherlands will increase by 8.5 percent. The state pension (AOW), also expected to grow by 8,05% in 2023, will be impacted by the increase in the minimum wage.
Pension Payment is changed 📢📢
The state pension age will increase to 66 years and 10 months in 2023. In comparison to the previous year, this is an increase of three months. The state pension age has now been fixed at 67 years of age for the years 2025 to 2027. The monthly state pension payment for married and living together couples would increase to 968,86 euros each. It will increase to 1.425,80 euros per month for single persons. The rate of unemployment benefits will rise by 10, 15% in the meanwhile. The Netherlands takes good care of the elderly, pretty #epic right? 😉
Salary & Tax – All you need to know
In order to increase the purchasing power of citizens and residents, the Dutch government announced a number of adjustments to the minimum wage and taxation in the Netherlands on Prinsjesdag in September 2022. The income tax rate for individuals in the lowest tax bracket (up to 73.071 euros per year) will decrease to 36.93 percent as of January.
The government’s adjustments to the Dutch tax system will result in salary increases for those working in the Netherlands of an average of 91 euros a month beginning in January, according to figures by payroll service provider ADP.
According to ADP, employees making a gross pay of 3.086 euros per month would experience an increase in their average monthly wages of 91 euros in the coming year. The income of people on the minimum wage will increase by 10, 15%, or almost 200 euros per month.
Housing in the Netherlands, any updates?
First off, the monthly rate of the national rent allowance will rise by up to 16,94 euros starting in 2023, making it possible for everyone paying a rent of at least 808,06 euros to get financial assistance.
In the Netherlands, private housing is far more flexible than communal housing.
To begin with, contracts have been liberalized, giving landlords and tenants more freedom in determining the rental amount and its inclusions. The yearly rent rise is restricted by legislation for a period of three years, beginning on May 1, 2021, and ending on May 1, 2024. The maximum rent increase is equal to inflation 1%, or (as of 2023), salary growth increase by 1%, if wage growth is less than inflation. The maximum rent increase in 2022 will be 3.3% (2.4% inflation + 1%). The maximum rent increase in 2023 is 4.1% (3.1% income growth + 1%).
Changes affecting expats in the Netherlands have come into effect. The 30% ruling for employees (incoming employees) who relocate to the Netherlands to work will be altered and give expats more room to breathe. The minimum wage in the Netherlands is set to increase by 8.5% in 2023. In spite of these changes, YTA will always keep you the most up-to-date with all of new changes in the Netherlands as well as in the industry.