On 1 July 2023, several financial changes will come into force in the Netherlands. You can read below how these changes might affect your business.
Increase in minimum wage
As usual, the legal minimum wage will increase as per 1 July. Fulltime employees that are 21 or older will receive at least 1995 euro per month, which amounts to an increase of approximately 3%. The state pension and unemployment benefits will increase accordingly as well.
Increase in interest rates
The current tax interest is 4%, which applies when the amount to pay to or receive from the Dutch tax authorities varies from the amount that is already paid. This will increase to 6%, which is more aligned with the current inflation rate.
The statutory interest rate that applies in the private sector will also increase from 1 July. Creditors will be able to charge 14% over outstanding amounts from 1 July, instead of the current 12%.
More opportunities for cross-border workers to work at home
From 1 July, cross-border workers who work in another country than their country of residence will be allowed to spend half of their total working hours at home without having consequences to their status on the social security law.
Good Landlord Act comes into force
Municipalities will have more authority to take measures aimed at protecting tenants. In addition to the general rules set by the central government, municipalities will be able to enforce additional rules to protect tenants, for example with regard to the rental price, maintenance, number of residents, discrimination and intimidation. Municipalities may also require a special permit for property owners to be able to rent out to migrant workers.
Rental price of social housings will increase from 1 July. If the pure rental price (excluding service costs) amounts to 300 euro per month or more, the rent may be increased by 3.1%. If it is lower than 300 euro per month, it may be increased by 25 euro per month.
For free sectors, the maximum increase is set at 4.1% since 1 January 2023.
Re-integration of sick employees
When an employee is sick for a long term and it is not clear when the employee can return to work, the employer must draw up a re-integration plan, which describes how the employee can re-integrate as quickly as possible.
From 1 July 2023, it will be mandatory to incorporate opinions of both parties (employer and employee) into the re-integration plan.
Please,Contact CIS Management for further information