{"id":5852,"date":"2026-03-23T09:01:21","date_gmt":"2026-03-23T06:01:21","guid":{"rendered":"https:\/\/arbeidsadvocaat.nl\/changes-to-labor-law-effective-january-1-2026\/"},"modified":"2026-08-16T15:44:37","modified_gmt":"2026-08-16T12:44:37","slug":"changes-to-labor-law-effective-january-1-2026","status":"publish","type":"post","link":"https:\/\/arbeidsadvocaat.nl\/en\/changes-to-labor-law-effective-january-1-2026\/","title":{"rendered":"Changes to Labor Law Effective January 1, 2026"},"content":{"rendered":"\n
As of January 1, 2026, there will be a number of changes to labor law\u2014ranging from an increase in the minimum wage and the maximum transition allowance to stricter enforcement regarding bogus self-employment. In this article, we outline the most important changes, including a preview of the proposed labor law amendments expected in 2026 and 2027. <\/p>\n\n
Maximum transition allowance rises to \u20ac102,000<\/strong><\/h3>\n\n
Effective January 1, 2026, the maximum transition allowance has been increased from \u20ac98,000 to \u20ac102,000 gross. Employees whose annual salary exceeds \u20ac102,000 are entitled to a maximum of one gross annual salary as a transition allowance. The increase results from the annual indexation based on contractual wage trends. <\/p>\n\n
The transition payment amounts to one-third of the gross monthly salary per year of service. Fixed salary components, such as vacation pay, a thirteenth month\u2019s salary, and recurring bonuses, are also included in the calculation. Good to know: the transition payment is a statutory minimum. A higher payment may be agreed upon in a settlement agreement. <\/p>\n\n
Higher minimum wage: \u20ac14.71 per hour<\/strong><\/h3>\n\n
As of January 1, 2026, the statutory minimum wage has increased to \u20ac14.71 gross per hour for employees aged 21 and older. This represents a 2.15% increase compared to the previous half-year (\u20ac14.40). The minimum wage is indexed every six months based on average wage growth in the Netherlands. <\/p>\n\n
Since 2024, the Netherlands has had a minimum hourly wage instead of a fixed monthly wage. As a result, the monthly wage depends on the number of contracted hours. Separate minimum youth wages apply to employees under the age of 21. <\/p>\n\n
Tax-Exempt Work-from-Home Allowance and Travel Expense Reimbursement<\/strong><\/h3>\n\n
Effective January 1, 2026, the maximum tax-free work-from-home allowance has been increased from \u20ac2.40 to \u20ac2.45 per day. No payroll taxes are due on this amount. Employers may reimburse a higher amount, but must then pay payroll taxes on the excess. <\/p>\n\n
The tax-free travel allowance will remain unchanged at \u20ac0.23 per kilometer in 2026. On any given workday, an employer may not apply both the tax-free work-from-home allowance and the tax-free travel allowance; a choice must be made for each day. <\/p>\n\n
Enforcement and Fines for Bogus Self-Employment<\/strong><\/h3>\n\n
As of January 1, 2025, the Tax and Customs Administration has resumed full enforcement against bogus self-employment. The enforcement moratorium that had been in place for years has been permanently lifted. In 2025, a transition period was still in effect during which no fines could be imposed. That transition period expired on January 1, 2026. As of that date, the Tax and Customs Administration may also impose administrative fines in cases of willful misconduct or gross negligence. <\/p>\n\n
For employers who work with self-employed individuals, it is important to critically assess employment relationships. The Tax Authority assesses these relationships based on the criteria set forth in the Deliveroo ruling, which focuses on authority, organizational integration, and working at one\u2019s own risk and expense. The classification of the employment relationship must correspond to the actual situation. <\/p>\n\n
Looking Ahead: New Legislation on the Horizon<\/strong><\/h3>\n\n
In addition to the changes that are already in effect as of January 1, 2026, there are several bills currently under consideration that will further change labor law in the coming years.<\/p>\n\n
Bill to Modernize Non-Competition Clauses<\/strong><\/p>\n\n
This bill aims to restrict non-compete clauses. At this time, it is not yet clear when this bill will take effect. <\/p>\n\n
VBAR Act (Clarification of the Assessment of Employment Relationships and Legal Presumption)<\/strong><\/p>\n\n
In March 2026, the government announced that it would largely scrap the VBAR bill. The provision regarding the legal presumption of employee status for hourly rates below \u20ac38 remains in place and will be further elaborated separately. The remaining criteria will be replaced by a new bill: the Self-Employed Persons Act. It is still unclear exactly when this legislation will take effect. <\/p>\n\n
Act on the Admission and Posting of Workers (WTTA)<\/strong><\/p>\n\n
The WTTA has now been enacted and is expected to take effect on January 1, 2027. This law introduces a licensing system for temporary employment agencies and other companies that provide workers.Act on Greater Security for Flexible Workers <\/p>\n\n
This bill was originally scheduled to take effect on January 1, 2026, but the parliamentary deliberations were not completed in time. The intended effective dates are July 1, 2026 (equal pay for temporary workers) and January 1, 2027 (other provisions). Recent reports from March 2026 indicate that these dates are also unlikely to be met: the plenary debate in the House of Representatives is expected in April 2026, and the bill must then still pass through the Senate. A delay is therefore to be expected. <\/p>\n\n
European Directive on Pay Transparency<\/strong><\/p>\n\n
The Pay Transparency Directive was to be implemented into Dutch law by June 7, 2026, at the latest. The Netherlands will not meet this deadline. The bill was submitted to the Council of State for review in January 2026, with an intended effective date of January 1, 2027. The European Commission has indicated that it will not accept a postponement, but the Netherlands is sticking to the later timeline for now. For employers with 150 or more employees, the first reporting requirement is expected to apply to the 2027 calendar year. <\/p>\n\n
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This blog was written by Stijn Blom, Esq., an employment law attorney at Arbeidsadvocaat.nl B.V. Stijn has extensive experience in employment law and assists employers and employees on a daily basis with a wide range of employment law issues. From dismissal cases and workplace accidents to drafting watertight agreements and policies\u2014with his practical and personalized approach, he helps employers and employees move forward. Want to learn more? Visit Stijn\u2019s page<\/a>. <\/p>\n\n
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