Netherlands – Changes to Social Security Rates, Minimum Wage, Income Tax Rates and Credits

Changes to Social Security Rates, Minimum Wage, Income Tax Rates and Credits

On Tuesday 17 December 2024, the Dutch Parliament voted in favour of the Tax Plan 2025 and the other bills presented on Budget Day. The Tax Plan and other bills propose the following changes, effective 1 January 2025:

Changes to Minimum Wage and Social Security

The government adjusts the amount of the minimum wage twice a year – on 1 January and 1 July. From 2024, the minimum wage is an hourly wage and no longer a monthly, weekly or daily minimum wage. The minimum wage for 2025 is as follows:

The maximum annual salary basis cap for employer contributions is  amended from  €71,826.00 to €75,864.00.

The Social Security rates have been amended as per the following table:

ZW-Flex (Werkhervattingskas)(Whk) has retroactively changed the indexed rates:

The wage limit will be indexed retroactively by 6.60 percent as of January 1, 2024, based on the average contract wage development of companies over 2024 as included in the Macro Economic Outlook 2025 of the CPB. 

Changes to Income Tax Rates and Tax Credits

The rates for wage tax are amended as below:

No AOW and AOW born before 1946

AOW born before 1946

The rates for general tax credit are amended as below:

The rates for labour wage tax credit are amended as below:

The rates for elderly wage tax credit are amended as below:

Single elderly wage tax credit is € 531.

Please contact your Mercans’ services delivery team for any additional information regarding the implications of the above change.

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Netherlands – Changes to Social Security Rates, Minimum Wage, Income Tax Rates and Credits

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