13 important payroll changes for 2026

In 2026, there will be many changes in the area of employment conditions and taxation. These changes will have a direct impact on employers. The home working allowances within the work-related expenses scheme (WKR) will be adjusted, as will the tax brackets. In addition, contributions and bases will increase. This may have consequences for your business operations and your employees. Would you like to know exactly what will change and what amounts and percentages will apply? Then read on, would you prefer to discuss what this means for your situation directly? Please contact our payroll team via payroll.services@crowe-peak.nl.

Legal updates effective January 2026

1. Changes to the free allowance/free space in the WKR

Through the WKR, you can give your employees tax-free allowances, such as gym memberships or Christmas hampers. These allowances may also provide private benefits for the employee. Some allowances are classified as targeted exemptions or zero valuations for payroll tax purposes. All other allowances must be paid from the discretionary scope (free space or ‘vrije ruimte’). The discretionary scope is determined on the basis of the total taxable salary of all employees. In 2026, this calculation will remain the same as in 2025: 2% of the taxable payroll up to €400,000 and 1.18% for the excess.

2. Commuting and home office allowances

The allowances for travel expenses and working from home will remain largely unchanged in 2026. As an employer, you will still be able to reimburse €0.23 per kilometre for travel expenses, tax-free, the same as in 2025. However, the working from home allowance will increase slightly, from €2.40 to €2.45 per day. This is a limited increase, but it is important to take it into account in your payroll administration.

3. Income tax brackets

In 2026, as in 2025, there will continue to be three tax brackets. The upper limit of the new bracket 1 will rise from €38,441 to €38,883 in 2026 and will have a combined tax and contribution rate of 35.70%. The second bracket ranges from €38,411 to €79,137 and the tax rate is 37.56%. Bracket 3 starts at €79,137 and the rate remains unchanged at 49.5%.

Due to the above adjustments, employees with an average to twice the average income may see a slight increase in their net monthly income. See the table below for illustrative calculations:

Salary	2025	2026	% change
€ 46.500	€ 37.011	€ 37.473	+1,25%
€ 93.000	€ 59.192	€ 59.771	+0,98%

Note: These calculations assume no salary adjustments between 2025 and 2026.

4. Minimum wage

The minimum wage is currently set as a fixed amount per hour, with the monthly wage determined by the number of hours in the collective labour agreement multiplied by the hourly wage. This minimum hourly wage will amount to €14.71 (excluding 8% holiday pay) in 2026. More specifically, the minimum wage based on a 40-hour working week will be €2,549.73 per month as of 1 January 2026. However, if fewer hours are worked according to the contract and/or collective labour agreement, the minimum monthly wage will decrease accordingly based on the number of hours worked.

For a clear overview, we have listed the monthly amounts per number of working hours below.

Workweek	Hourly wage 2025	Hourly wage 2026	Hourly wage 2025	Monthly wage 2026	% Increase
36 hours	€ 14,06	€ 14,71	€ 2.193,36	€ 2.294,76	+ 4,65%
38 hours	€ 14,06	€ 14,71	€ 2.315,21	€ 2.422,25	+ 4,65%
40 hours	€ 14,06	€ 14,71	€ 2.437,07	€ 2.549,73	+ 4,65%

5. State pension (AOW) age

The Dutch state pension age will remain unchanged at 67. This means that employees born after 31 December 1958 and before 1 January 1960 will be eligible for a state pension in 2026.

6. Customary salary for DGAs

The “customary salary” for a director and major shareholder (DGA) is the minimum amount that a DGA is obliged to draw as salary from a private limited company. From 2026, this amount will be set at €58,000 per year. This amount includes, among other things, the additional tax liability for a company car, holiday pay, a 13th month’s salary and other payments.

7. Changes to premiums and social security contributions

The maximum wage amount on which contributions are paid will increase from €75,864 to €79,412 in 2026. This is the wage including holiday allowance/13th month/bonuses and pension deductions. Depending on the size of the company, type of employment contract and sector, costs will increase by around 4%. This is mainly due to the increase in the maximum contribution amount. As a result, little will change for employers with employees whose annual salary is below €79,409. Below is an overview of the contributions and the maximum contribution and contribution wage.

	2025	2026*	Verschil
Employer Zvw	6,51%	6,10%	-0,41%
Employee Zvw	5,26%	4,85%	-0,41%
Aof low	6,28%	6,26%	-0,02%
Aof high	7,67%	7,61%	-0,06%
WKO surcharge	0,50%	0,50%	–
AWf low	2,74%	2,74%	–
Ufo	7,74%	7,74%	–
WGA/WHK	1,33%	1,52%	–
Max. premium/contribution wage	€ 75.864	€ 79.412	+4,46

8. The 30% ruling in 2026

In 2026, the percentage of the 30% ruling will remain unchanged at 30%, but there will be some important adjustments. The minimum annual salary requirement will increase to €48,013 (standard) and the low salary standard for employees under the age of 30 with a master’s degree will be €36,497. In addition, a maximum salary applies for the application of the scheme, linked to the WNT ceiling, which will be €262,000 in 2026. Important: the transitional law for the application of this salary cap will be completely abolished on 1 January 2026, which means that the cap now applies to all users of the scheme. Furthermore, a number of extraterritorial cost items, such as utilities and private telephone costs, will be removed from the tax-free allowances. The maximum term of five years will remain in force.

Looking ahead to 2027, the percentage of the scheme will be reduced to 27%, further reducing the tax benefit. Employers would be wise to incorporate these changes into their expatriate policy and contract negotiations in good time. For employees to whom the 30% ruling already applied before 1 January 2024, the 30% ruling will continue to apply until the end of its term.

Would you like to know whether your employee is eligible for the 30% ruling? Please contact us.

9. False self-employment

In 2026, the approach to false self-employment will become stricter. The Tax and Customs Administration is still applying a soft landing: in case of doubt, they will start with a warning and a company visit. But beware: additional wage tax assessments can be imposed retroactively to 1 January 2025, and in cases of intent or gross negligence, penalties will follow. The old moratorium under the DBA Act is now definitively over. From 1 January 2027, the soft landing will be completely abolished.

New is the VBAR Act, which will come into force on 1 July 2026 and will provide clearer rules for assessing employment relationships. Important: there will be a legal presumption of employment for rates below €36 per hour. The assessment will remain holistic: all circumstances will be taken into account, such as the relationship of authority, integration into the organisation and entrepreneurship.

What does this mean for organisations?

Case law (Deliveroo, Uber) confirms that there is no hierarchy between criteria. It is about the overall picture. Contracts alone are not enough; actual implementation is decisive.

Action points for 2026

1. Review current self-employed assignments: record facts about authority, rates, entrepreneurial risk and replacement.
2. Prepare for enforcement: company visits and book audits are possible; additional tax assessments can be backdated to 2025.
3. Review contracts: consider indemnity clauses and clear agreements on entrepreneurship.
4. Follow the VBAR Act: adapt internal processes and train teams on the new criteria.

Crowe Peak is ready to assist you in this and ensure that your employment relationships comply with legislation and regulations. Questions? Contact our team for expert advice and support.

10. New home working arrangement in the tax treaty with Germany

On 1 January 2026, an amendment protocol will come into force that modernises the Dutch-German tax treaty. The core of this amendment is the introduction of the 34-day rule: cross-border workers may work from home in their country of residence (or a third country) for up to 34 days per year without the tax liability shifting to the country of residence. This offers more flexibility for occasional working from home and reduces the risk of double taxation. The rule also applies to government employees, albeit with a few nuances. Employers must keep accurate records of days worked, as exceeding the threshold has immediate consequences for taxation. The measure is a step towards simplicity and legal certainty, but structural hybrid working arrangements remain out of reach. An evaluation will follow after two years, with a possible extension to more days.

11. New standard amounts for highly skilled migrants

From 1 January 2026, adjusted salary criteria will apply to highly skilled migrants, Intra Corporate Transfers (ICT) and Blue Cards.

Salary criteria 2026

• Highly skilled migrants aged 30 or older: €5,942 gross per month

• Highly skilled migrants younger than 30: €4,357 gross per month

• Reduced salary standard: €3,122 gross per month

• European Blue Card: €5,942 gross per month

• European Blue Card (reduced standard for former students): €4,754 gross per month

Please note that the above salary criteria:

• Are age-related (with the exception of the reduced salary standard)

• Are gross per month, excluding 8% holiday pay

• Apply to all applications received by the Dutch Immigration Service from 1 January 2026

Relevant to applications submitted for the Intra Corporate Transferee Directive (ICT) residence permit, Blue Card permits, highly skilled migrant permits and short-stay highly skilled migrant work permits (less than 90 days within a period of 6 months).

For applications submitted before 1 January 2026, the 2025 salary criterion will continue to apply, even if the highly skilled migrant does not travel to the Netherlands until 2026. The same applies to renewal applications submitted in 2025.

Please note: However, this does not apply if a highly skilled migrant changes employers in 2026. In such cases, the salary criterion in force on the date on which the new employment contract commences applies.

Employing international employees in the Netherlands?

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12. Reduced salary standard

The reduced standard applies in three situations:

1. Orientation year for highly skilled migrants: the residence permit is applied for during or immediately after this orientation year.
2. Within 3 years of graduation or obtaining a doctorate: the employee previously had a residence permit for an orientation year, or the highly skilled migrant application is submitted within 3 years of graduation, obtaining a doctorate, or the expiry of a residence permit for research.
3. Graduates without an orientation year: the employee meets the requirements for an orientation year, such as graduating, obtaining a doctorate or conducting research. The application must be submitted within 3 years of graduation, obtaining a doctorate or expiry of a research permit.

These changes are part of the annual review and have a direct impact on attracting highly educated international employees.

13. Upcoming changes for highly skilled migrants

As of 1 January 2026, the rules for accredited sponsors working with highly skilled migrants (HSM) and European Blue Card holders will change. In addition to new salary thresholds and application fees, the administrative retention obligation in particular will become stricter.

From that date onwards, it will be mandatory to demonstrate that the salary has actually been transferred to the employee’s bank account. To this end, you must retain the following documents in your records:

• Bank statements from the business account showing the transfer to the employee.
• Batch payment overviews of the monthly salary runs.

It is important that these documents clearly show that the account number is in the employee’s name., 2025. The reduced salary threshold applies in specific scenarios, such as during or after a high-skilled orientation year (oriëntatiejaar), or within three years of graduation or a completed PhD.

Crowe Peak: Your global mobility and payroll partner in 2025

The changes for 2026 raise important issues for employers. It is essential to integrate these developments into your policy and administration in good time. Do you have questions about the impact of these changes on your organisation? Contact our team for a personal consultation and a critical review of your payroll.