Amendments for employers as of 1 January 2026

What’s changing in employment law in the Netherlands on 1 January 2026? Here’s what employers need to know: an overview of the key updates.

1. Enforcement false self-employment: partial extension of the ‘soft landing’

As of 1 January 2025, the Tax Authority resumed enforcement on the classification of working relationships for payroll tax purposes. During the first year, a so-called “soft landing” was in place. The plan had been to return to normal enforcement and penalty rules as of 1 January 2026.

On 18 December 2025, however, the government informed the House of Representatives that the soft landing will be partially extended through 1 January 2027. This means that in 2026 the Tax Authority will not impose default penalties (verzuimboetes) and, as a rule, will begin its supervision with an on‑site visit. That said, penalties (vergrijpboetes) in case of bad faith may still be imposed where there is intentional wrongdoing or gross negligence. The Tax Authority also retains the ability to issue additional tax assessments retroactively for the period starting 1 January 2025.

2. Equivalent employment conditions for temporary agency workers

As of 1 January 2026, the new Collective Labour Agreement for Temporary Agency Workers 2026-2028 will take effect. From that date, the overall package of employment conditions for agency workers must be at least equivalent to those of employees in the same or comparable roles who are employed directly by the hirer. Not every individual employment condition has to be identical; what matters is that the total package is equivalent. This principle will also be laid down in the More Security for Flexible Workers Act, the relevant part of which is expected to enter into force on 1 July 2026.

3. New pension system 

On 1 January 2026, more than 9.5 million pensions will move to the new pension system under the Future of Pensions Act (Wtp).

4. Increase in the minimum hourly wage

The minimum hourly wage is increasing due to indexation. For employees aged 21 and over, the minimum gross hourly wage will increase from EUR 14.40 to EUR 14.71. For employees aged 15 to 20, youth minimum hourly wages apply; these are calculated as a percentage of the standard minimum hourly wage.

5. Increase of maximum remuneration under the WNT 

For 2026, the general remuneration cap under the Executives' Pay (Standards) Act (WNT) has been set at EUR 262,000 (2025: EUR 246,000). The WNT limits the remuneration of senior executives in the public and semi‑public sector. Different sector‑specific caps apply in the education, culture, media, housing association, healthcare, and development aid sectors. A higher cap applies to health insurers. An overview of the WNT remuneration caps for 2026 is available on topinkomens.nl. The new Implementing Regulations WNT 2026 and the Policy Rules WNT 2026 have also been published.

6. Tax‑free homeworking allowance and travel allowance

The tax‑free homeworking allowance will increase to a maximum of EUR 2.45 per day in 2026 (2025: EUR 2.40).

The maximum tax‑free travel allowance remains EUR 0.23 per kilometre.

7. Reimbursement of extraterritorial costs (ETK scheme)

The scheme for reimbursing extraterritorial costs will be scaled back. This means that certain costs can no longer be reimbursed tax‑free from 2026. These include additional cost‑of‑living expenses, such as gas, water, electricity and other utilities, and additional private call charges with the country of origin.

8. Maximum pensionable salary

As of 1 January 2026, the maximum pensionable salary remains unchanged and is provisionally set at EUR 137,800 gross.

9. Transition payment

The statutory transition payment upon dismissal will increase to a maximum of EUR 102,000 (currently: EUR 98,000). If the employee’s annual salary is higher than EUR 102,000, the maximum equals one gross annual salary.

10. RVU: threshold exemption and levy

The RVU threshold exemption will increase to EUR 2,357 gross per month. To make the RVU more accessible for employees with a low income or little supplementary pension, employers may grant up to an additional EUR 300 gross per month on top of the basic RVU benefit.

In addition, the rate of the pseudo‑final levy on any RVU amount above the threshold exemption will be increased in stages: 57.7% in 2026, 64% in 2027 and 65% in 2028.

11. Excessive severance payments

Employers are liable for a 75% levy for excessive severance payments. This pseudo‑final levy applies only if the reference salary exceeds the threshold amount and only to the extent the severance payment exceeds that threshold. The threshold will increase to EUR 700,000 in 2026 (currently EUR 680,000).

12. AOW state pension age unchanged

The AOW state pension age will remain 67 in 2026 and 2027. For 2028 through 2031, it will be 67 years and 3 months.

13. No more wage cost benefit (LKV) for older employees

As of 1 January 2026, employers will no longer receive the wage cost benefit (LKV) for hiring employees aged 56 or older. This applies to employees who entered into employment on or after 1 January 2024. For employees who started before 1 January 2024, the wage cost benefit will continue to apply.

For an overview of the (other) tax changes relating to employment and wages as of 1 January 2026, see the Tax Authority’s Payroll Tax Newsletter 2026.