Current changes and concerns as of July

Several changes relevant to employers and business owners go into effect July 1, 2025. These current changes and concerns as of July include adjustments to the minimum wage, tax rules, and administrative obligations. Below are the key areas of concern conveniently listed to ensure your organization remains timely and fully compliant.

Transfer payroll remittance obligation in case of multiple employers within one group 

The transfer of the payroll (wage tax and social security contributions) remittance obligation provides a solution for situations where an employee within a single group has multiple employers in different countries. This can prevent double social insurance contributions being paid on the same income. 

If an employee lives in the Netherlands and works for two companies within the same group, for example one in the Netherlands and one in Germany, the employee remains socially insured in the Netherlands if he works there more than 25%. In principle, both employers must pay social insurance contributions, but upon request, the Dutch Tax Authorities can approve that only the Dutch employer is responsible for paying social insurance contributions.  

The Dutch Tax Authorities issued an official position on this on March 25, 2025. For the calculation of social insurance and health insurance contributions, the maximum contribution wage only needs to be included once, even if there are several employers within the group. This prevents unnecessary overpayment of contributions. 

Amendments to the Netherlands-Germany tax treaty 

The tax treaty between the Netherlands and Germany is being amended to allow cross-border workers to work from home without having to pay tax on their income in both countries. The change in the tax treaty offers several advantages for cross-border workers. 

A tax treaty prevents workers from paying double taxation on the same income both in the country of residence and in the country where the employer is located. In general, income tax is levied in the country where the work is physically performed. If cross-border workers work from a country other than where the employer is located, taxing rights may also be assigned to the country of residence. For example, tax must then be paid in the country of residence for the portion worked at home, and in the country of the employer for the remaining portion of income. 

After adjustment, frontier workers (individuals who live in one country and work in another) will be allowed to work at home for up to 34 days per calendar year without incurring tax obligations in their country of residence. This means that their income for those days remains taxed only in the country where their employer is located. 

Frontier workers who work from home more than 34 days per year do not benefit from this arrangement. The Netherlands and Germany have signed a letter of intent to explore whether the home-work exemption can be expanded in the future. 

Taxability of costs incurred when applying for a combined residence and work permit (GVVA) 

When applying for a combined residence and work permit (GVVA) for employees who fall under the highly skilled migrant scheme or the intra-corporate transfer (ICT) scheme, the question arises to what extent the costs incurred should be considered taxable wages. 

Dutch Tax Authorities recently took a position on this issue. The costs for the GVVA application should be split into two parts. The part that relates to the residence permit, including fees and advisory costs, is considered wages and is therefore taxed for payroll taxes. This part provides the employee with a taxable benefit in the eyes of the Dutch Tax Authorities. The part that relates to the work permit (TWV) is not considered wages and remains untaxed because this part is primarily in the interest of the employer. 

Minimum wage 

From January 2024, the legal minimum wage will no longer be shown per month, but per hour. This introduced a minimum hourly wage. This minimum wage was €14.06 gross (excluding 8% vacation pay) as of January 1, 2025 and will now increase by 2.42% to €14.40 as of July 2025. See below an overview of the changes by number of working hours and the corresponding minimum wages as of January 1 and July 1 of this year. 

Working weekk	01-01-2025 hourly wage	01-07-2025 hourly wage	Monthly wage 2025	% Increase
36 hours	€ 14,06	€ 14,40	€ 2.246,20	2,42%
38 hours	€ 14,06	€ 14,40	€ 2371,20	2,42%
40 hours	€ 14,06	€ 14,40	€ 2.496,-	2,42%

Working week	01-01-2025 hourly wage	01-07-2025 hourly wage	% Increase
20 years	€ 11,25	€ 11,52	2,40%
19 years	€ 8,44	€ 8,64	2,37%
18 years	€ 7,03	€ 7,20	2,42%
17 years	€ 5,55	€ 5,69	2,52%
16 years	€ 4,85	€ 4,97	2,47%
15 yeasr	€ 4,22	€ 4,32	2,37%

Statutory vacation days expire July 1, 2025 

Statutory vacation days accrued in 2024 will expire on July 1, 2025, unless taken before that date. By law, employees are entitled to at least four times the number of working days per week of statutory vacation days each year (for full-time employment: 20 days). 

Accrued statutory vacation days have an expiration period of six months after the end of the accrual year. Only in exceptional situations do untaken days remain valid for longer. This means that vacation days from 2024 must be taken no later than June 30, 2025. 

Employers are required to inform employees of their outstanding statutory vacation days and their expiration date in a clear and timely manner. In addition, employers must give employees the opportunity to take leave on time. 

If this is not done, the days remain valid and do not expire. Therefore, it is wise to actively inform employees about their outstanding vacation days. 

Report CO₂ emissions by June 30, 2025 

From 2025, organizations with 100 or more employees will be required to report CO₂ emissions from work-related transportation. This measure stems from the Climate Agreement and aims to encourage more sustainable travel. 

Meaning that data must be provided on the number of kilometers for commuting and business trips, means of transport used (car, public transport, bicycle, e-bike) and fuel type (electric, fossil, hybrid). This information for the year 2024 must be submitted no later than June 30, 2025 via an online form on the RVO website. This requires eRecognition level EH2+. 

Note: Failure to report may result in penalties or fines. The environmental services agency monitors compliance with this obligation. 

Stay compliant and prepared for change

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