We start the new year with a number of new legislative changes in labor law. In the article below, Emanuella de Moor talks more about them.
Date: January 15, 2024
Modified April 10, 2024
Written by: Emanuella de Moor
On January 1, 2024, the legal minimum hourly wage was introduced. The minimum hourly wage is €13.27 gross for employees aged 21 and older. As a result of the introduction of the minimum hourly wage, there is no longer a statutory minimum daily, weekly and monthly wage. For employees earning the minimum wage, as of this year, the monthly wage will be determined by the number of hours that employee actually works. Before the introduction of the minimum hourly wage, a minimum wage earner who worked 40 hours earned as much as a minimum wage earner who worked 36 hours, if this was "full-time" employment for both workers. That disparity is now coming to an end. A 21-year-old employee who works 40 hours a week earns €13.27 gross x 40 hours = €530.80 gross that week. A 20-year-old employee working 36 hours a week earns €13.27 gross x 36 hours = €477.72 gross that week.
If an employee has a fixed scope of work, a fixed wage per month can be agreed upon. This fixed pay per month is then based on the number of hours that that employee works on average per month. These hours of work are derived from the number of hours the employee works in the calendar year. Additional agreements may be made in an applicable collective bargaining agreement or the employment contract. Note that the number of days on which an employee works may vary from year to year. Some days occur 52 times in a calendar year, while others occur 53 times. If different employees work the same number of hours, but these hours are spread over other days, the monthly wages of those employees may differ.
The maximum transition compensation was increased from €89,000 to €94,000 on January 1, 2024. If the employee's annual salary is higher than € 94,000, the transition compensation may amount to a maximum of the annual salary. Need help calculating transition compensation? We are at your service.
The maximum untaxed travel allowance went up as of Jan. 1, 2024. The maximum allowance is now €0.23 per kilometer (instead of €0.21). The untaxed home work allowance has been increased to a maximum of € 2.35 per day (instead of € 2.15). Incidentally, an employer is not obliged to offer or increase the mileage and homework allowances. The granting of these allowances is voluntary. Thus, the employer can also grant no or a lower untaxed allowance.
The Whistleblower Protection Act went into effect in early 2023. This law requires employers with 250 or more employees to significantly and immediately amend their whistleblower regulations. Employers with 50-249 employees had until December 17, 2023 to amend their whistleblower regulations. Want to save time and effort and comply with the new Whistleblower Protection Act in one go? For only € 950.00 (excluding VAT) you can purchase a complete, customized and up-to-date 'Whistleblower Policy' from us. Please contact our colleague Bas Blaauwhof directly.
A number of employers with fewer than 50 employees are also required to have internal reporting arrangements that meet the requirements of the Whistleblower Protection Act. These are organizations operating in the areas of financial services and products, prevention of money laundering and terrorist financing, civil aviation, maritime labor and port state control, and offshore oil and gas activities.
On July 1, 2023, the Future Pensions Act entered into force. This law radically changes the Dutch pension system, in particular because soon every employee will build up his or her own "pension pot" based on pension contributions to be paid in. Among other things, employers will be required to draw up a transition plan for switching to a different pension plan. The works council also has a right of consent regarding the change in the pension plan. Although employers have until Jan. 1, 2028, to adapt current pension plans to the new law, it is advisable to start making preparations now.
If you have any questions about the above changes? Please feel free to contact us.