Key Changes in the Dutch Law in 2024
Embracing the new year means embracing change! In the realm of Dutch taxes, benefits, and increases, 2024 has a lineup of key updates that’ll impact your everyday life. Let’s dive into the most crucial ones. 📈💼
- 3 January 2024
- Posted by: Expat Management Group
- Category: Insights
1. Scrapped STAP Budget
The employees will no longer be able to apply for the STAP budget, as the scheme will be replaced by a new temporary training arrangement.Â
2. Boost in child benefits
The government raises childcare allowances for working parents. Now at €10.25 for daycare, €9.12 for out-of-school care, and €7.53 for childminder care, surpassing initial plans.
Find out all you need to know about child benefits in the Netherlands here!
3. Healthcare insurance premiums to increase
The majority of health insurance providers will increase their premiums this year by around €8 per month.Â
4. Raised travel allowance
The max tax-free travel allowance will increase to 0,23 €/km, allowing employees to make a bigger saving on their taxes.
5. 30% ruling
Effective as of January 1, the 30% tax benefit will still apply for a maximum of five years, but will significantly reduce the tax advantage for employees who start as of 1 January 2024 or later. The maximum duration of 60 months remains the same. This means:
– A maximum of 30% of income will be tax-exempt for the first 20 months
– A maximum of 20% of income will be tax-exempt for the second 20 months
– A maximum of 10% of income will be tax-exempt for the third and last 20 months
For a 30%-ruling with a term shorter than five years, the same percentages and periods apply. The government has implemented a transitional arrangement for those already receiving this benefit.
6. Updates in income tax rates
Box 1 (Salary):
- Income over €75,518 taxed at 36.97%
- Income below €75,518 taxed at 49.5%
- National insurance contribution threshold rises to €38,098.Â
Box 2 (Interest income in limited companies):
- Earnings over €67,000 taxed at 24.5%
- Earnings below €67,000 taxed at 33%
Box 3 (Savings and investments):
- Tax rate increases from 32% to 36%.
7. End of energy price cap
Starting January 1, the energy price cap that lowered electricity and gas costs in 2023 will be lifted. Customers will now face increased bills, but those in need can seek assistance from the Energy Emergency Fund.