It’s January – the exciting month of new beginnings and fresh starts. The new year brings our hopes up, but it also brings change. If you live or work in the Netherlands, you need to be familiar with the latest legal updates.
Here are shortcuts to some of the changes in Dutch law in 2022:
Employment & Income
Personal income tax
The 2022 Tax Plan package includes minor, yet important changes designed to improve the tax system.
This year, the top rate of the personal income tax will remain 49.5%. However, the rate for people earning up to € 69,397 will be slightly lower 37.07% (down from 37.1%).
Here’s a comparison between 2021 and 2022:
2021 |
||
| Tax bracket (income range) | Tax rate | |
| € 0 – € 69,397 | 37.10 % | |
| € 69,398 and upwards | 49.50 % | |
2022 |
||
| Tax bracket (income range) | Tax rate | |
| € 0 – € 69,397 | 37.07 % | |
| € 69,398 and upwards | 49.50 % | |
Corporate tax rate
Some good news for the entrepreneurs – in 2022, the lowest bracket of the low corporate tax rate (VPB) will be extended. The corporate income tax of 15% on the profit will apply to profits up to € 395,000 instead of the previous € 245,000.
| Profits | Rate |
| € 0 – € 395,000 | 15% |
| > € 395,000 | 25.8% |
Source: Jdsupra
Minimum wage
This year the gross amount of the national minimum wage will increase. The rate of the increase will depend on the worker’s age, working hours and labour contract. The gross minimum wage will be:
| Age | Monthly | Weekly | Daily |
| 21+ | € 1.725,00 | € 398,10 | € 79,62 |
| 20 | € 1.380,00 | € 318,50 | € 63,70 |
| 19 | € 1.035,00 | € 238,85 | € 47,77 |
| 18 | € 862,50 | € 199,05 | € 39,81 |
| 17 | € 681,40 | € 157,25 | € 31,45 |
| 16 | € 595,15 | € 137.35 | € 27.47 |
Source: Rijksoverheid
Pension age
The official retirement age (AOW) in 2022 will be 66 years and 7 months (3 months higher than last year’s). By 2024, the pension age in the Netherlands is expected to rise to 67 years.
| Year | Pension age | Applicable to people born |
| 2020 | 66 + 4 months | After 31 August 1953 and before 1 September 1954 |
| 2021 | 66 + 4 months | After 31 August 1954 and before 1 September 1955 |
| 2022 | 66 + 7 months | After 31 August 1955 and before 1 June 1956 |
| 2023 | 66 + 10 months | After 31 May 1956 and before 1 March 1957 |
| 2024 | 67 years | After 28 February 1957 and before 1 January 1958 |
| 2025 | 67 years | After 31 December 1957 and before 1 January 1959 |
| 2026 | 67 years | After 31 December 1958 and before 1 January 1960 |
Source: Tossinholland
Work from home allowance
With the current pandemic restrictions, the work-from-home model is still relevant and popular in the Netherlands. In 2022, companies will be able to provide employees who work from home with a tax-free allowance of € 2 per day. The allowance will cover additional costs like energy bills and cups of coffee.
Update: To obtain a fixed tax-free Work From Home Allowance (WFHA) based on €2 per day, the calculation, for a full year, must be made using 214 days (the same method used for the Fix Travel Expense). Someone who works 5 days per week can receive a WFHA of € 35,66 per month. Employers can always give more (than € 35,66) and if they want it to be made tax free as well, they can give it as an expense allowance. However, this amount will be deducted from the Vrije ruimte van de Werkkostenregeling.
Living & Housing
Rent limit
The government has set a limit for rent increases in the free sector. In 2022, landlords will be able to increase rents for housing by a maximum of 3.3%. Tenants can submit a dispute with the landlord about the amount of the rent increase to The Rent Tribunal (Huurcommissie).
Mortgage interest deduction
From January 2022, the tax deduction for mortgage interest will drop from 43% to 40% for homeowners with an income over € 69,398 a year.
National mortgage guarantees
The National Mortgage Guarantee will increase to a maximum amount of € 355,000 or € 376,300 for energy-saving investments in the home.
Business & Immigration
Residential address of entrepreneurs
The home address of managing directors and entrepreneurs will no longer be displayed in the Register of the Chamber of Commerce. The sensitive data will only be visible to tax authorities, civil-law notaries and lawyers.
More women as board members
In 2022, women will have to make up at least one-third of board members in large limited liability companies (BV) and public companies (NV). In addition, large companies will have to set targets for a more balanced distribution of men and women in their top management positions.
Naturalisation (inburgering) system
The naturalisation system will also be affected by changes. From January, municipalities will play an important role in supporting newcomers in the Netherlands, and the integration process will become more personalised.
Another change – new residents with an integration obligation will have to achieve a B1 level of Dutch (instead of A2). If you are planning to move to the Netherlands or just want to learn another language, here are 5 Reasons to Start Learning Dutch right away.
Healthcare & Family
Ban on smoking areas
In 2022, all smoking areas in office buildings will have to be closed. There will also be a ban on cigarette vending machines, applying to all hospitality establishments.
In addition, the ban on smoking in the workplace will be extended to all business sectors. As a result, offices spaces and corporate buildings in the Netherlands will be completely smoke-free.
Parental leave scheme
From August 2022, parents will be able to take advantage of a new paid parental leave scheme. The government will pay 50% of parents’ wages for the first nine weeks of their leave. This will guarantee at least nine weeks of paid parental leave.
Child benefit
The Dutch government will increase the child budget benefit by 3.1% as from the second child in the family. The childcare allowance will also increase – the amount will depend on the parents’ income, the number of children and the childcare type. The childcare allowance per child will be for a maximum of 230 hours monthly.
