Changes that may affect your finances as of 1 July

| Leiden International Centre

As of July 1 2023, there will be a number of changes that may affect your finances due to the introduction of new laws, rules and rates. Below you can read all about all these changes.

Higher minimum wage and benefits

On July 1, the statutory minimum wage for adults will increase by more than 3 percent, from 1,934.40 euros to 1,995.00 euros gross per month. That is converted to 460.40 euros per week and 92.08 euros per day.

There is not yet a legal minimum wage per hour. The minimum hourly wage will be introduced in 2024. For now, you can calculate the hourly wage yourself. The minimum wage for adults is 11.51 euros per hour for a 40-hour working week.

The minimum youth wage and the minimum wage for BBL students will also increase by the same percentage.

The adjustment of the minimum wage will also affect various benefits, which will also increase. Examples are the General Old Age Pensions Act (AOW) and the Unemployment Insurance Act (WW). 

Less excise duty discount

Prices at the gas stations will go up considerably next month. At least half of the excise tax reduction that the cabinet implemented last year due to the energy crisis will be reversed. The rest should follow early next year, although that is not yet certain.

Because an inflation correction is added to this, the price for a liter of petrol will increase by 14 cents and the price for a liter of diesel by 10 cents.

Higher statutory interest, more expensive loans

As of 1 July, the statutory interest will also increase. This is the interest that a creditor, such as the government or a shop, can claim by law if someone is in arrears or debt. 

The statutory interest for so-called 'non-commercial transactions' will rise from 4 to 6 percent. And that is why, for example, you will have to pay more interest if you are late with filing the income tax. Borrowing money can also become more expensive: the maximum interest that a lender can charge will increase from 12 to 14 percent because this interest is linked to the statutory interest. 

Less child benefit

Child benefit will be reduced by about 3 percent because prices move in line with inflation. This means a reduction of the quarterly amount by more than 8 euros for children up to and including 5 years of age, more than 9 euros less for children aged 6 to 11 years, and more than 11 euros for children from 12 years of age.

Social housing

The rents of social housing and student rooms may be increased by a maximum of 3.1 percent from 1 July. This increase applies to a monthly rent of 300 euros or more. If the rent is lower, a maximum of 25 euros more may be charged. For higher incomes, the rent increase can work out higher.

On the other hand, the rents of more than half a million residents of lower-income housing corporation homes will decrease as of July 1, housing corporations promised earlier.

TV and internet

Many people will also pay more for internet, television and telephone calls this summer. The largest telecom providers KPN and Ziggo will increase their rates from 1 July. At KPN, this is more than 6 percent. At Ziggo, prices for various packages will increase by an average of 8.5 percent. 

According to Ziggo, this is necessary because of the high inflation: "If prices in the Netherlands rise, our costs will also rise", the company previously stated.

Plastic tax

A plastic chip tray or coffee-to-go in a paper drinking cup with a plastic layer may no longer be given free of charge as of 1 July. From that date you will pay a surcharge on your disposable packaging or deposit if you opt for a reusable one.

Changes for employers

In addition to the amendments mentioned above, there are also a number of legislative changes for companies, employers and entrepreneurs. 

New pension law 

The Future Pensions Act (Wtp) will come into effect on 1 July 2023. You have until 1 January 2028 to adjust your pension scheme to the new rules. The three main changes are the following:

  • Fixed contribution: The new pension system is based on a fixed contribution (the amount you pay). The maximum statutory premium is set at 30 percent of your employee's income. The exact amount of the contribution in the new pension system is determined by the pension fund, based on the expected return and the participants.
  • Pension benefit more flexible: The level of the pension benefit is determined by the return achieved on the premiums paid in. Pension funds can index benefits more easily, because they no longer need to maintain large buffers. Premiums can also be reduced more easily when the economy is performing poorly.
  • More insight and more personal: Every employee will soon know how full his or her pension pot is and how much return has been achieved on it. In addition, investments are made differently per age group: for young people with a higher risk, for the elderly with a lower risk. As a result, return and security are important components of the new pension system.

Vision on reintegration sick employee

As of July 1, 2023, you and your sick employee are obliged to provide a vision on reintegration. You must record this view of progress in the action plan. The vision of both parties can also be adjusted when adjusting that plan. In addition, you must again state your vision on reintegration during the first-year evaluation. 

It is important that you fully comply with the rules for absenteeism guidance and the reintegration of a long-term sick employee.

If after two years it appears that you have not complied with the rules, the UWV can impose a wage sanction. This means that you have to continue to pay the wages to your sick employee for longer. You can prevent that with a complete file. Your employee will then receive a benefit more quickly.

Shortened payment of sick old age pensioners

If you have an employee who has already reached state pension age and they are absent due to illness, you only have to continue paying wages for six weeks. Previously it was 13 weeks. As a result, you run even less risk when hiring and keeping older employees.

For employees who were already ill before 1 July 2023, the period of 13 weeks will continue to apply. For cases of illness that arise on or after 1 July 2023, the new term of 6 weeks will apply.

Short-term continued payment of wages in the event of illness of an older employee

Compared to other employees, the continued payment of wages during illness is a lot shorter. You are normally obliged to continue paying wages for 104 weeks if an employee is ill. That's two years. This is therefore considerably shorter for employees of state pension age.

Other rules for dismissal via UWV

The Implementation Rules for dismissal via the UWV have been changed since April 1, 2023. You must apply for a dismissal permit from the UWV for the dismissal of an employee who is long-term incapacitated for work or in the event of dismissal for business economic reasons.

The UWV now applies the new rules in its assessment. If your company is bound by a collective agreement, you must, for example, obtain permission from a collective agreement committee for dismissal for business economic reasons.

Law work where you want

The Work Where You Want Act states that you must in principle accept a request from your employees to work from home, if this is possible for the type of work they do. This also applies to requests from home workers who want to work in the office or elsewhere.

This Act is an amendment to the existing Flexible Working Act. The bill has been passed by the House of Representatives, but has yet to be approved by the Senate. The introduction will probably not be on July 1, but in 2024 at the earliest.

Legal holidays expire

Also good to take into account: on 1 July 2023, the statutory holidays from 2022 that your employees have not yet taken will expire. The statutory holidays always expire half a year after the calendar year in which they were accrued. Extra-statutory holidays may be kept longer.

Legislative amendments to entrepreneurs

In addition to important new laws regarding personnel, there are also a number of legislative changes on July 1, 2023 that may affect your business operations. These include a ban on free cups and trays, a ban on the online sale of cigarettes, and the obligation that the collection agency be licensed.

More legislative changes may follow later in 2023. And on January 1, 2024, a number of important new laws are expected for small and medium-sized enterprises (SMEs).