Dutch Law in 2024: This is What’s Changing in the Netherlands Next Year

As the year 2024 unfolds, the Netherlands gears up for a series of legal modifications that will impact both its residents and visitors. Here’s an overview of the key changes to Dutch law in the coming year.

1. Changes Affecting Workers

New Income Tax Rates The Dutch government has recalibrated tax rates and brackets across various income categories. Notably, the top income tax threshold will not be fully adjusted for inflation, leading to a higher number of high earners falling into the top tax bracket. The 30 percent ruling for highly-skilled migrants is also set to be significantly reduced.

Hourly Minimum Wage Starting January 1, 2024, a new statutory minimum hourly wage of 13.27 euros will come into effect, eliminating monthly, weekly, and daily minimum wages. This change aims to address discrepancies in pay caused by the previous monthly minimum wage model.

Travel Allowance Increasing Employees can expect a slight boost in the maximum tax-free travel allowance, rising from 0.21 to 0.23 euros per kilometer.

STAP Budget Abolished The STAP budget, which supports employee training, will be replaced by a new temporary arrangement. The existing budget will likely be redirected to the SLIM scheme.

2. Changes to Social Security, Benefits & Allowances

Health Insurance Premiums Increase Health insurers will raise premiums by around 8 euros per month in 2024, with the healthcare allowance boost expiring, affecting those on lower incomes.

State Pension Age Increase The state pension age will rise from 66 years and 10 months to 67 years in 2024. Rent and childcare allowances, however, will see increases.

Rent and Childcare Allowance Increase Rent allowance will increase by a maximum of 416 euros, and childcare allowance rates will be raised to further support working parents.

Pension Funds Increase Payouts Several major pension funds, including ABP and PFZW, have announced increases in pension benefits for the coming year.

3. Changes for Consumers

Energy Price Cap Scrapped The energy price cap, benefiting consumers in 2023, will expire on January 1, leading to potentially higher energy bills.

Increased Taxes on Soft Drinks, Fruit Juices, and Oat Milk To encourage healthier choices, the government will impose higher taxes on non-alcoholic drinks, affecting prices of fruit juices and oat milk.

Flight Tax Increase Airfares will rise in 2024 due to an increase in the flight tax to 28.58 euros.

Alcohol and Cigarette Duties Increase Higher duties on alcohol and cigarettes aim to discourage consumption and fund support schemes.

Ban on Flavored Vapes Starting January 1, 2024, only tobacco-flavored e-cigarettes will be allowed for sale to prevent appealing to children and young people.

4. Other Law Changes

Combined Surnames for Children A new law allows children born in the Netherlands from January 1, 2024, to be registered with both parents' surnames.

Traffic Fines Increase Traffic fines will see a hike in 2024, including fines for not wearing a seatbelt, using a mobile phone while driving, and unnecessary lane usage.

No More Tourist Buses in Amsterdam Amsterdam will prohibit big tourist buses from entering the city center, with only a specific route exempted from the ban.

Interest on Student Loans Increasing Graduates paying off student loans will face higher interest rates in 2024, marking the highest level in 14 years.

As the year unfolds, these legal changes are set to shape the landscape for workers, beneficiaries, consumers, and the general public in the Netherlands. Be prepared for a dynamic 2024 with these noteworthy amendments.

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