The coalition agreement - changes in the labor market?

In recent years, several opinions have been issued on the (future of) the labor market in the Netherlands. Among others, the report of the Borstlap Commission and an opinion of the Social and Economic Council (SER) on this subject were published. Last Wednesday, December 15, the coalition agreement for Cabinet Rutte-IV was published. This gives us the opportunity to see what the cabinet's plans are for the labor market in the coming government period.

Reduce differences between permanent and flex

One of the issues that emerged from both the SER opinion, and the Borstlap Commission report, is reducing the differences between permanent and flexible contracts. Too many people in the Netherlands depend on temporary contracts. That brings uncertainty. It also follows from the advice that on-call, temporary and temporary employment contracts should be better regulated. Companies should be given more options for permanent contracts -with internal flexibility and agility. In that context, a "budget-neutral part-time unemployment" is being considered. An employee then remains fully employed, but only works half. For the other half, that employee receives unemployment benefits. In this way, a company with many permanent employees is better able to absorb economic blows.  

Self-employed

The self-employed must be "supported," according to the coalition. The self-employed are supported in part by the further development of the web module. Through the web module, it can be assessed in advance whether there is an employment contract or a contract for services. The cabinet also wants better enforcement against false self-employment if there is a suspicion of employment.

There will be disability insurance for all self-employed workers. This will be designed to prevent unfair competition and large income risks for individuals. In addition, the self-employed deduction (income tax exemption for the self-employed) will be reduced in steps of € 650 from 2023 to € 1,200 in 2030. There will be compensation for this reduction through an increase in the earned income tax credit.

Other plans

In addition to the above, the coalition's plans related to the labor market include the following:

• Burden reduction for SMEs by offsetting sick pay.
• Abolish surcharges and simplify the tax system.
• Stepwise increase in the minimum wage by 7.5%.
• In sickness, the primary goal is for the employee to recover and return. In that context, the continued payment of wages during illness is improved. The second year of reintegration will basically focus on the second track (reintegration with another employer).
• Implementing the pension agreement.

Future

Of course, these are only (part of) the plans from the coalition agreement. How these plans will be converted into actual laws and regulations, the future will tell. And of course we will keep you informed!