In a letter to the House of Representatives, Minister Eddy van Hijum of Social Affairs and Employment writes that it is important for employers to continue taking responsibility for the housing of their employees. They can do this by offering a rental contract, whereby the employee makes the payment themselves, for example through direct debit.
Minister Eddy van Hijum of Social Affairs and Employment: “The cabinet wants employers to let migrant workers pay a fair price for housing. We see that employers use the withholding option too much as a business model. From the exploration of this regulation, I have concluded that there are too many irregularities surrounding this regulation and have therefore decided that it will be abolished in the long term.”
From an exploration, it has become clear that migrant workers are somewhat relieved by the ability to withhold for housing, but that this withholding option is also used as a business model. It appears that due to the withholding option, the maximum amount is regularly withheld from wages, while the quality of the housing does not always justify this. For the Dutch Labor Inspectorate, it will be easier to check whether an employer pays the legal minimum wage by abolishing the withholding option.
The Taskforce for the Protection of Migrant Workers has recommended breaking the dependency of migrant workers. The Good Landlord Act stipulates that a rental agreement must be separate from the employment contract. However, the withholding option still creates too strong a link between work and rent. For these reasons, the cabinet wants to abolish the regulation regarding housing in the long term.
Gradual Phase-Out and Additional Policy
Employers may not withhold wages from the minimum wage of workers for housing costs as of January 1, 2030. Currently, employers are allowed to withhold a maximum of 25% of wages from the minimum wage. Starting January 1, 2026, this percentage will decrease by five percent each year, leading to the end of this regulation in 2030.
The abolition of the regulation must be done carefully to allow employers, housing providers, and social partners time to adapt. To further improve the position of migrant workers, additional measures are needed. In the letter to the House, the cabinet indicates that it is working on further improving the rental and rent price protection for migrant workers and addressing irregularities in housing. Efforts are also being made to increase the housing supply and to strengthen supervision and enforcement in housing.