Payroll and HR changes in 2025
This year has seen a number of HR and payroll-related changes. We have set out details of the most important ones for you.
Labour cost compensation for older employees
The labour cost compensation (LKV) for older employees recruited on or after 1 January 2024 has been reduced as at 1 January 2025 and will end on 1 January 2026. But it will still be available for employees recruited before 1 January 2024.Met
Labour cost compensation for redeploying employees with an occupational disability
From 1 January 2025, more employees will be covered by the labour cost compensation scheme for redeploying employees with an occupational disability. Employers can also claim this compensation for employees who start working in their existing job again, either fully or partly, or in another job with the employer during the waiting period applying under the Work and Income (Capacity for Work) Act (WIA). The right to labour cost compensation for redeplying employees with an occupational disability starts on the day on which the right to WIA benefit starts.
Low-income benefit discontinuedage
From 2025, low-income benefit (LIV) will no longer be available. Employers will still receive LIV payments for 2024 in 2025. Employees are covered by the LIV scheme if they work at least 1,248 hours a year for an average hourly wage of between 100% and 125% of the minimum wage.
Increased budget for R&D tax credits
The budget available under the Promotion of Research and Development Act (WBSO) has increased in 2025 by €100 million. This legislation provides tax credits to help businesses fund R&D payroll and other necessary related expenditure. The rates applying in the first band are 36% (2024: 32%) and 50% (2024: 40%) for starters, up to €380,000 (2024: €350,000). The rate applying in the second band is still 16%.
EIA energy investment allowance
The EIA scheme allows businesses to deduct 40% of their energy investment costs from taxable profits. This tax benefit is available for investments in energy-saving measures and sustainable energy. It applies on top of the usual depreciation rules. The scheme is available for businesses paying income or corporate tax in the Netherlands.
Hiring independent contractors
From 2025 onwards, the Dutch tax authorities will enforce the legislation designed to counter pseudo self-employment. This may result in supplementary tax assessments for businesses hiring independent contractors for work that is not genuinely performed independently. In 2025, however, the tax authorities have said they will not fine businesses able to demonstrate that they are making efforts to reduce pseudo self-employment within their organisation.
Increase in discretionary scope under the Work-related Expenses Scheme (WKR)
The WKR scheme allows employers to pay employees allowances free of tax. From 2025, the discretionary scope under the WKR will increase to 2% for wage bills up to €400,000 and to 1.18% for wage bills above €400,000. From 1 January 2027, the discretionary scope for wage bills up to €400,000 will increase to 2.16%.
Sickness absenteeism fines
The maximum sickness absenteeism fines are set once every 5 years. The maximum fines for 2025 are:
- Failure to report: €1,675 (2024: €1,377)
- Failure to pay: €6,709 (2024: €5,514)
- Failure to correct: €1,675 (2024: €1,377)
Ending of tax exemption for delivery vehicles
From 2025, delivery vehicle owners will be liable for the same tax as owners of private cars. Businesses have to pay this tax (BPM) when buying a vehicle. The tax payable depends on the vehicle’s CO2 emissions.
Final levy for delivery vehicles
A final levy is payable for the private benefit arising when a delivery vehicle is regularly used by various employees. Employers pay a fixed amount for each vehicle meeting the conditions.
Until the end of 2024, this was €300 per year. From 2025, however, the amount will rise to €438. The amount had not been indexed since 2006, but will now be indexed annually. Payment is made in equal instalments during the year. In the case of monthly tax returns, this means €36.50 per vehicle per month.
