Recent developments in the Netherlands
Local and international employment law is always changing. Thankfully, we keep a close eye on the latest developments, so you don’t have to. Read on to find out what’s been happening in the Netherlands
Increased pension contribution rate (2024)
As of January 2024, the contribution rate for the part of the employer’s pension contribution known as the ‘Sociaal fonds WG’ was increased to 0.15%. The previous rate was 0.075%.
Increase of the state pension age (2023)
The Dutch government is gradually raising the age when employers can receive the general old age pension (AOW). The state pension entitlement age was raised to 66 years and ten months in 2023, and to 67 years in 2024. By 2028, it will be increased to 67 years and 3 months. The age at which an employee in the Netherlands is entitled to the state pension depends on their date of birth.
Reforms to the pension system (2023)
The Dutch Future Pensions Act (Wet toekomst pensioenen) took effect on 1 July 2023. The Act introduced significant changes to the pension system in the Netherlands, which will be gradually phased in over a four-year transitional period. The main change is that the previous ‘defined benefit’ scheme will be replaced by a ‘defined contribution scheme’. Effectively, this means that Dutch employees will now receive all of the contributions they or their employers have made, plus any profits earned on those contributions. Existing pensions must also be converted to the new scheme.
New payment terms for foreign nationals (2022)
An amendment to the Foreign Nationals (Employment) Act (Wet arbeid vreemdelingen) in 2022 has made certain changes to the way Dutch companies can engage foreign employees. The biggest change is that work permits can now be issued for three years, instead of just one year. The Act also requires employers to pay foreign nationals a monthly salary by bank transfer, so the worker can make use of their salary and ensure they receive the correct amount.
Requests for changes to working hours (2022)
As of 1 August 2022, employees in the Netherlands can request a change to their working hours, including requesting a part-time work arrangement. Employers must grant these requests unless there is a substantial business reason for denying them.
