In 2023 a lot changed in the rules around work, and mostly in favour of employees. The minimum wage went up and the STAP budget was introduced. Curious about what else changed? Read on.
Higher minimum wage
You read that right: on 1 January 2023 the minimum wage rose by 10.15%. That increase was a response to rising prices. Good to know if you are going to apply for jobs: from that moment, employees aged 21 and over were entitled to at least €1,934.40 gross per month.
Travel allowance
For the first time since 2006, the tax-free mileage allowance went up, from 19 to 21 cents. Driving and public transport are becoming more and more expensive, so employees spend more on getting to the office. Employers may therefore pay out a higher travel allowance tax-free.
A worked example: you travel 20 kilometres there and 20 back every day, five days a week. At 19 cents you received €152 per month (40 km x 5 days x €0.19 x 4 weeks). At 21 cents that is €168 per month.
STAP budget
In 2023 the government made the STAP budget available for a training course, education or course. With a maximum of €1,000 per person per year, you could further develop or expand your skills. The government wants employees and jobseekers to be able to make their own choices about their development, because that increases the chance of keeping your job or progressing. The first application round of 2023 opened on Tuesday 28 February at 10:00.
What does that mean for you? Do you want to develop further or take a course? Discuss it with your HR department.
Work Where You Want Act
This act states that an employer must take an employee's reasonable request to work from home seriously, as long as it suits the type of work. It also works the other way round: anyone who works from home and would rather work at the office can make a request to do so. Please note: the employer's obligation only applies to a request to work from the employee's own home address. The act gives employees more freedom in their place of work and more control over their balance between work and private life.
Higher retirement age
From 1 January 2023 the retirement age rose to 66 years and ten months. Everyone born between 31 May 1956 and 1 March 1957 reached the state pension (AOW) age in 2023. In 2024 the retirement age goes to 67. After that, the state pension age will no longer rise by a full year for every year that we live longer, but by eight months.
The state pension age therefore remains linked to life expectancy, but less strongly than before. The reason is that people in the Netherlands are living longer and longer. On your payslip you can see that you pay a state pension contribution every month: those who work pay the state pension of the pensioners of that moment. This is called a pay-as-you-go system.
That system is under pressure because life expectancy is rising. When the state pension was introduced, average life expectancy was around 73; it is now 81. Older people therefore receive the state pension for twice as long on average, while relatively fewer people are working and paying contributions. In short: the state pension from 1957 has become too expensive.
More plans for 2023
In 2023 the government also wanted to amend the so-called interruption rule in the chain rule for temporary contracts. Until now, the count of temporary contracts starts again if there are more than six months between two contracts. What does that mean?
Suppose you have three temporary contracts with an organisation and then go travelling for seven months. Normally you would get a permanent contract with your fourth contract. Because of the seven-month interruption, until now you started again at your 'first' contract. If the plans go ahead, you will get a permanent contract after your third contract, even if you have been away for more than six months.
The government also wanted to abolish on-call contracts, to give employees more certainty about their pay and schedule. Zero-hours contracts and min-max contracts would disappear and be replaced by basic contracts with a minimum number of hours per quarter, with the exception of school pupils and students.
Go through these points carefully and discuss with your HR department what you are entitled to.
Questions or comments? Feel free to get in touch with us.