Foreign employers in the Netherlands will have to adjust to a new salary calculation method for their foreign employees, according to a rectification made as of March 2015. The new calculations will be made without the vacation allowances or the 13 month’s salary payment. Our law firm in the Netherlands can help you know more about the legislation for hiring migrants and the taxes for Dutch companies concerning these employees.
A change for the salary criterion
The salary criterion was changes for highly skilled migrants and holders of a European blue card working in the Netherlands. The methodology is now a monthly based one compared to the previous annually one used before the change was made.
The annual calculation method included an exception for the vacation allowance and the 13th month’s salary that allowed for these two types of payment to be made on an annual basis. When the change was made for a monthly calculation, the Government did not clearly specify that the change was only concerning the monthly salary and it excluded the vacation allowance. Changes has been made as of March 2015 to the relevant legislation in order to rectify this misunderstanding.
New gross monthly amounts
According to the new legislation, the 13 month’s salary cannot be included unless it is pays on a monthly basis to the highly skilled migrant. Foreign business owners in the Netherlands
who have employed highly skilled foreign employees should be well aware of this change so that they can adjust the monthly wages of their employees accordingly.
The gross monthly amounts for highly skilled migrants applicable as of March 2015 are:
- for individuals 30 years and older: 4,189 euros excluding vacation allowance;
- for individuals younger than 30 years of age: 3,071 euros excluding vacation allowance;
- for foreign employees who graduated in the Netherlands: 2,201 euros excluding vacation allowance;