Yesterday, the King presented the government’s policy plans for the coming year. The caretaker government put forward proposals for new employment law measures. In this article, we give an overview of the key employment law bills.
Company cars and CO2 levy
In the 2026 Tax Plan, the caretaker government proposes introducing a pseudo-final levy of 12% as of 1 January 2027 on company cars that emit CO2. This levy is payable by the employer and applies to cars not used exclusively for business purposes — commuting will henceforth also count as private use. Transitional arrangements apply to existing cars until 17 September 2030. At the same time, the discount on the taxable benefit-in-kind for electric cars disappears as of 2026: the standard rate of 22% will then also apply there.
Relaxation of the RVU pseudo-final levy extended through 2028
The caretaker government is extending the early retirement scheme (RVU) through 2028. This allows employees who, due to the demands of their work, cannot continue working until the state pension age to stop working earlier. The threshold exemption — the amount below which no pseudo-final levy is owed — will be increased by EUR 300 per month from 2026 and indexed annually in line with the minimum wage. To fund this expansion, the RVU levy rate will gradually rise, from 57.7% in 2026 to 65% in 2028.
Clarification of Employment Relationship Assessment Act
The caretaker government continues work on the bill to clarify the assessment of working relationships (VBAR), intended to replace the DBA Act. This law is meant to provide more clarity on when someone can work as a self-employed person and when an employment relationship exists.
Shortening of unemployment benefit duration postponed to 2028
The planned shortening of the maximum duration of unemployment (WW) benefits from 24 to 18 months will take effect a year later than planned. The measure was originally due to start on 1 January 2027, but the UWV indicated this date was not feasible. Implementation has therefore been postponed to 1 January 2028.
Wage growth in 2026
The Netherlands Bureau for Economic Policy Analysis (CPB) expects collectively agreed wages to rise less sharply in 2026 than in recent years. Where growth in 2025 stands at 5%, the forecast for 2026 is 4.2%. Wage growth is nevertheless still expected to outpace inflation. Trade unions are pushing for stronger wage increases, but employers are cautious given fragile economic growth and rising government spending.
Social security premiums 2026
The Ministry of Social Affairs and Employment’s budget shows most employer premiums will remain unchanged in 2026. The premium for the Occupational Disability Fund (Aof) will fall slightly: the low rate by 0.02 percentage points and the high rate by 0.03 percentage points. The premium for the Return to Work Fund (Whk), by contrast, will rise by 0.2 percentage points to 1.52%. Other premiums remain unchanged. The Ministry will set the final percentages at a later date.
Employment tax credit rises slightly again in 2026
The 2026 Tax Plan shows the employment tax credit rising again. Its maximum will go from EUR 5,999 in 2025 to EUR 5,712 in 2026, making work financially more attractive and reducing the tax burden on labour. Other tax credits are also rising: the general tax credit increases slightly from EUR 3,068 to EUR 3,115, and the income-dependent combination tax credit from EUR 2,986 to EUR 3,032.
Changes to the minimum wage
On Budget Day 2025, several changes to the minimum wage were announced. As of 1 January 2027, the youth minimum wage will rise sharply: for 20-year-olds to 87.5% of the statutory minimum wage and for 19-year-olds to 75%, with comparable increases for younger age groups. The vocational-training wage scale (bbl-loonstaffel) will also be abolished, meaning vocational students on the work-based learning route will become entitled to the full youth minimum wage. In addition, the maximum percentage employers may deduct for housing costs will be reduced by 5% annually from 2026. At the same time, employees on the minimum wage will see a small net decrease in 2026: depending on the working week, income will fall by a few euros per month.
Employer health insurance levy falls from 2026
Both the employer levy and the income-dependent contribution for the Health Insurance Act (Zvw) will fall in 2026. The employer levy drops from 6.51% to 6.07%, and the contribution paid by employees or benefit recipients falls from 5.26% to 4.85%. The maximum contribution income simultaneously rises from EUR 75,860 to EUR 79,412. This makes the Zvw cheaper for both employers and employees in 2026.
Government scraps mobility reporting obligation for SMEs
On Budget Day 2025, it was announced that the reporting obligation for work-related personal mobility (WPM) will be abolished for SMEs. Only organisations with 250 or more employees will need to report annually on commuting and business kilometres going forward. Scrapping this reporting obligation is the first measure under the government’s plan to reduce regulatory burden across 500 rules before summer 2026. For many smaller businesses, this means a significant easing of administrative burden.
We will address the remaining employment law measures from Budget Day 2025 in more detail at a later stage. Curious what the latest developments mean for you?
Please feel free to contact one of Sørensen Advocaten’s employment lawyers. Call: +31 10 249 24 44.
