Key HR Changes in the Netherlands as of July 1, 2025

As of July 1, 2025, several legislative and regulatory updates will impact employers and HR professionals across the Netherlands. Here's a summary of the most important developments you need to prepare for:

The statutory minimum wage will increase to €14.06 per hour for employees aged 21 and over. Employers must ensure all payroll systems are updated accordingly and that employment contracts reflect this new rate where relevant.

The tax-free home office reimbursement is increasing to €2.40 per day. This adjustment is designed to support remote work and helps cover the costs employees incur while working from home.

The maximum amount of transitional compensation an employee can receive in the event of dismissal will be raised to €98,000. This figure is tied to wage developments and should be factored into severance planning.

A new law is expected to require companies with more than 10 employees to appoint or provide access to a confidential advisor. The goal is to foster a safer and more supportive work environment, especially in the context of reporting undesirable behavior.

Following a European court ruling, part-time employees must be compensated for any extra hours worked beyond their contract, even if they haven't reached full-time hours. This marks a shift from previous practices and will require updates to payroll systems and employment policies.

Although the favorable 30% tax ruling for expatriates will remain in place for now, the salary cap for eligibility is increasing to €246,000. Companies employing foreign workers should reassess who qualifies and how the new cap impacts compensation planning.

These HR developments mark a continued shift toward greater transparency, sustainability, and inclusivity in the Dutch labor market. Employers should act now to ensure compliance, avoid penalties, and support employees through upcoming changes. A proactive HR strategy will be essential in managing these transitions effectively.

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