Key Changes in Dutch Law for 2024

Changes Affecting Workers

New Income Tax Rates

The Dutch government has revised income tax rates and brackets for Box 1, Box 2, and Box 3 incomes in 2024. Notably, the top tax bracket threshold for national insurance contributions will rise, potentially affecting high earners.

30 Percent Ruling Reduced

Highly-skilled migrants benefiting from the 30 percent ruling will face a significant reduction in its duration. While the plan is yet to receive Senate approval, if enacted, it will likely apply retroactively from January 1, 2024.

Hourly Minimum Wage

Beginning January 1, 2024, the Netherlands will transition to a statutory minimum hourly wage, eliminating monthly, weekly, and daily minimums. This change aims to address discrepancies in the existing model.

Travel Allowance Increase

The maximum tax-free travel allowance will slightly rise, allowing employees to make more significant tax savings on their travel expenses.

STAP Budget Abolished

From 2024 onwards, the STAP budget for employee training will be replaced by a new temporary arrangement, details of which are yet to be announced.

Changes to Social Security, Benefits & Allowances

Health Insurance Premiums Increase

Health insurers will raise premiums in 2024, impacting basic policies. Additionally, the healthcare allowance boost introduced in 2023 will expire, reducing the maximum healthcare allowance.

State Pension Age Increase

The state pension age in the Netherlands will increase to 67 in 2024, affecting those born after January 1, 1958.

Rent Allowance Increase

Rent allowance will see a maximum increase of 416 euros, expanding the eligibility threshold for many.

Childcare Allowance Increase

Childcare allowance rates will rise, benefiting working parents whose children attend registered childcare facilities.

Pension Funds Payout Increase

Several major pension funds in the Netherlands, including ABP, PME, PFZW, and PGB, will increase pension benefits.

Changes for Consumers

Energy Price Cap Scrapped

The energy price cap introduced in 2023 will expire, leading to potentially higher electricity and gas bills.

Soft Drinks, Fruit Juices, and Oat Milk Price Increase

To encourage healthier choices, the government will raise the "lemonade tax" on non-alcoholic drinks, affecting plant-based alternatives like oat milk.

Flight Tax Increase

Airfares are expected to rise as the flight tax increases in 2024.

Alcohol and Cigarette Duties Increase

Higher duties on alcohol and cigarettes aim to discourage their use and fund support schemes.

Ban on Flavored Vapes

From January 1, 2024, only tobacco-flavored e-cigarettes will be allowed for sale in the Netherlands.

Other Law Changes

Parents Can Give Combined Surnames to Children

Starting January 1, 2024, children born in the Netherlands can be registered with both parents' surnames.

Traffic Fines Increase

Traffic fines will see an increase in 2024, emphasizing the importance of adhering to traffic regulations.

No More Tourist Buses in Amsterdam

Amsterdam will ban big tourist buses from its city center, with only one exception.

Interest on Student Loans Increasing

Graduates in the Netherlands will face higher interest rates on student loans in 2024, reaching the highest level in 14 years.

As we usher in 2024, these changes reflect a dynamic legal environment in the Netherlands, impacting various facets of daily life. Stay informed to navigate these modifications effectively.