Introduction
More and more people are experimenting with crypto, even beyond their investment accounts. But what if you want to receive your salary in bitcoin? Is that legally possible? And what happens if the value suddenly collapses? In this blog you can read about salary payment in cryptocurrency, what the law says about it, and what protection employees have in the process.
Salary in bitcoin: is it allowed?
The short answer is: yes, you may, but with some important conditions.
The law states that wages are the consideration for labor. In principle, wages must be paid "in money," but that does not mean that they necessarily have to be in euros, as long as there is mutual agreement. So you can agree that part of the salary is paid in another form, such as cryptocurrency, gift certificates or board and lodging. In the latter case, there is pay in kind, and that includes crypto.
Note: minimum wage must be in euros
There is, however, a clear limit to what can be paid in bitcoin. By law, the legal minimum wage must always be paid in euros. That means that only the portion above the minimum wage may be paid in bitcoin or other crypto.
In short:
- Basic pay should always be in euros.
- Bonuses, commissions or extra pay are allowed, with consent, in crypto.
- Everything must be demonstrably recorded between employer and employee.
What if the stock price drops?
Crypto is known for its high volatility. Suppose you get your salary (partially) in bitcoin, and shortly thereafter the price plummets, are you out of luck?
If you agreed in advance to pay in bitcoin (for the portion above the minimum wage), you bear the exchange risk yourself. You cannot hold the employer liable for loss of value in that case.
At the same time, the law offers a way out: you can always withdraw your consent and request to receive your full salary again in euros from now on. This is regulated in the Civil Code. However, such a change must be announced reasonably in advance so that the employer can prepare for it.
Case study: Domino's Pizza
The idea of salary in bitcoin is not a legal fiction. In 2021, Domino's Pizza Netherlands announced that 16 branches offered their employees the option of receiving part of their salary in bitcoin. It was implemented through an external service provider so that all tax and legal obligations were met. It was always about the part of the salary above the minimum wage.
Although the hype has since cooled somewhat, this example shows that employers can indeed be open to alternative forms of pay, provided it is legally sound.
What can you do as an employee?
If you are interested in pay in crypto:
- Discuss it with your employer.
- Make sure everything is in writing.
- Be well informed about tax implications and price risks.
- Know that you can always return to pay in euros.
And as an employer, be aware of the legal obligations around minimum wage and accounting for wages in kind in payroll.
Conclusion
Receiving salary in bitcoin is legally possible, but only under certain conditions. The legal minimum wage must always be paid in euros, and you must explicitly agree to alternative payment for the excess. As long as both parties are well informed and agreements are clearly defined, payment in crypto can be an experimental but legally tenable option.
This blog was written by mr. Stijn Blom, employment lawyer at Arbeidsadvocaat.nl B.V. Stijn has extensive experience in employment law and supports entrepreneurs and employees on a daily basis with a variety of employment law issues. From dismissal cases to drafting watertight contracts and regulations - with his practical and personal approach, he helps employers and employees move forward. Want to know more? Visit Stijn's page.
Arbeidsadvocaat.nl is happy to think with you if you have questions about salary. Please feel free to contact us .
April 2025
