Summary of the main changes
Work and income:
The minimum wage, adjusted twice per year, has increased for adults 22 and over by €21.60 to €1,615.80 per month. Those aged 19 receive an increase of €11.90 to €888.70 per month. View the new minimum wage amounts per age group.
While income tax rates remain relatively constant, except for those earning €20,142 to €68,507, who are now taxed at a reduced rate of 38.1% (rather than 40.85%), other tax increases mean that goods and services will be more expensive. The Netherlands’ lower VAT rate (value-added tax, BTW) has risen from 6% to 9%, affecting the price of things like food, taxis, hairdresser services and event tickets – the standard Dutch VAT rate remains 21%.
The maximum period for receiving the 30% ruling (for new applications) has now been reduced from eight to five years.
Families and childcare:
Partners of new mothers now receive five days paid leave – an increase from two days in 2018. Child benefits will also increase so that parents earning up to €75,000 will be eligible for assistance with childcare (an increase from €58,500). Use the childcare allowance calculation tool to find out how much of the benefit you could receive.
Contributions towards the cost of medication has been capped at €250 and the basic health insurance policy now also covers medical advice on weight loss for health reasons. In addition, over-the-counter drugs like paracetamol will no longer be available on prescription.
Housing and mortgage rates:
Energy tax increases will increase gas and electricity costs. In addition, the rent-control threshold which determines whether a property falls under the public or private sector has been frozen for the past three years. It will now be indexed again, setting the rent-control ceiling at €720.42 from 1 January.
Police and safety:
Vehicle registration details collected by camera may be stored for up to four weeks. This will assist police with investigating serious crimes. Relatives of victims who died or were seriously injured receive compensation for emotional loss, also known as ‘bereavement damages’. Read more about the new legislation on the government.nl website.
Find a detailed summary of all changes on DutchNews.nl