Minimum Hourly Wage
The minimum hourly wage increases due to indexation. The minimum hourly wage for employees aged 21 and over rises from €14.40 to €14.71 gross per hour. Fixed minimum youth hourly wages apply for employees aged 15 to 20. These youth minimum wages are derived from the statutory minimum hourly wage.
Benefits
All benefits increase due to indexation. This includes participation act benefits (social assistance), IOAW, IOAZ, AOW, ANW, Orphan benefit, Wajong, WW, IOW, WIA, WAO, Sickness Benefits Act and Allowances Act.
Child Benefit, Childcare Allowance and Child-related Budget
Parents receive higher reimbursements as contributions to the costs for children. This concerns child benefit, childcare allowance and child-related budget.
The cabinet invests €199 million in a higher childcare allowance for working parents. Working parents with a combined income up to €56,412 will be reimbursed 96% of the costs up to the maximum hourly rate. Parents with a higher income also receive a higher reimbursement percentage.
The maximum hourly rates for childcare increase. This means the maximum hourly rate for day care is €11.23, for after-school care €9.98, and for childminder care €8.49.
The child-related budget increases slightly for single parents with an income up to €29,736. Couples with an income up to €39,141 also receive a bit more. If the parents income is higher than these amounts, they may receive slightly less child-related budget.
Child benefit increases due to indexation.
Participation Act in Balance
The cabinet adjusts the Participation Act. With simpler rules and more financial security when people move from social assistance back to work. The earning limits to work while retaining benefits are expanded. Clear rules are introduced for receiving gifts (up to €1,200 per year without affecting benefits). Municipalities can provide social assistance retroactively. This prevents people from having no income initially and accumulating debts. The law also emphasizes trust in professionals and people on social assistance.
New Pension System
On January 1, over 9.5 million pensions switch to the new system. More than half of participants will be under the new system in 2026.
Increase in RVU Tax Exemption
Employees doing heavy work can retire three years earlier under the Early Retirement Scheme (RVU). They receive a benefit from their employer until pension age. Employers do not pay extra tax (RVU levy) on this benefit. The amount increases due to indexation to €2,357 gross per month.
To make RVU more accessible for employees with low income or little supplementary pension, employers can add up to €300 gross per month on top of the basic RVU benefit (net equal to an AOW benefit). Collective labor agreements can arrange this. Employers pay no extra tax on this additional amount.
AOW Age
The AOW age remains 67 years.
Changes in Wage Cost Subsidy
Employers can receive wage cost subsidy (LKV) for older employees and employees with disabilities. For older employees (56 and over), the subsidy is abolished from January 1, 2026. For employees hired before January 1, 2024, the employer retains the subsidy.
For employers with more than 25 employees, it becomes easier to employ people with disabilities under the jobs agreement target group. The wage cost subsidy for the jobs agreement applies from 2026 as long as the employee is employed. Previously, the subsidy was for a maximum of three years. Also, no special target group declaration from UWV is needed to receive this subsidy.
From School to Sustainable Work
Youth with a distance to the labor market receive better guidance transitioning from school to work. Municipalities, schools, and transition points are required to collaborate to prevent dropouts. Schools will offer additional career guidance, also after students leave school. Municipalities provide more preventive and appropriate support back to school, work, or a combination of work and learning. Guidance is for youth up to 27 years from mbo (levels 1 and 2), vso, pro, and early school leavers.
Transition Compensation
The transition compensation upon dismissal increases due to indexation and amounts to a maximum of €102,000. Or, if the annual salary is higher than €102,000, a maximum of 1 gross annual salary.
Caribbean Netherlands
The statutory minimum wage and benefits on Bonaire, Sint Eustatius, and Saba increase due to indexation. Employees there also gain rights to emergency leave and short-term care leave. Childcare becomes more affordable for parents through the BES Childcare Act. The law supports child development and makes it easier for parents to work. Households with minimum income on Bonaire, Sint Eustatius, and Saba receive an energy allowance of $1,300 per year.