CO2-Registration Duty
From 1 July 2024, employers with over 100 employees must monitor and report the CO2 emissions from their employees’ commuting. This regulation aims to reduce environmental impact and promote sustainable practices. Businesses will need effective tracking systems to ensure compliance and accurate reporting.
Minimum Wage Increase
The minimum wage in the Netherlands will rise to €13.68 per hour. This increase is designed to improve living standards for low-wage workers. Employers must update their payroll systems and communicate this change clearly to their employees to avoid any confusion.
Future Changes on the Horizon
Overtime Regulation Expansion
From 1 January 2025, the rules for overtime under the Unemployment Benefits Act (WW) will expand. This change will affect how overtime is calculated and the associated premiums. Employers should review and adjust their overtime policies in advance to ensure compliance.
Postponement of the Lump Sum Revision Act
Lawmakers have delayed the implementation of the Lump Sum Revision Act once again. Consequently, this delay gives employers more time to prepare. However, it’s crucial to stay informed about the new timeline and any future updates to this legislation.
Expiration of the Low-Income Benefit (LIV)
The Low-Income Benefit (LIV), an annual allowance for employers of low-wage workers, will expire. This benefit has helped reduce wage costs and increase employment opportunities for low-wage employees. Employers will need to plan for the financial impact of this change and explore alternative strategies to support low-wage workers.
Summary
From 1 July 2024, significant changes in Dutch employment law will take effect. Employers must track CO2 emissions from employee commuting and adjust to a higher minimum wage of €13.68 per hour. Future changes include expanded overtime regulations from January 2025, the delayed Lump Sum Revision Act, and the expiration of the Low-Income Benefit (LIV). The 360 Business Law Employment Team can assist with compliance, payroll updates, policy reviews, legislative updates, and financial planning. Contact us to ensure your business remains compliant and well-prepared.