Dutch law in 2025: This Is What’s Changing in The Netherlands
| IamExpat
What should expats living and working in the Netherlands know about changes in the new year? Here are all the changes to Dutch law in 2025.
Changes affecting workers
The new budget from the government means several changes for workers in the Netherlands in 2025, many of which will affect salaries:
Dutch minimum wage increase
From January 1, 2025, the hourly minimum wage in the Netherlands is set to increase. Next year, gross incomes will increase to the following:
| Age | Hourly minimum wage (as of July 2024) | Hourly minimum wage (as of January 2025) |
|---|---|---|
| 21+ | 13,68 | 14,06 |
| 20 | 10,94 | 11,25 |
| 19 | 8,21 | 8,44 |
| 18 | 6,84 | 7,03 |
| 17 | 5,40 | 5,55 |
| 16 | 4,72 | 4,85 |
| 15 | 4,10 | 4,22 |
However, part-time workers will see less of an increase show up in their bank accounts, as the general tax credit will be decreased which means workers with smaller salaries will start paying more tax.
New income tax bracket
A new lower-income tax bracket will be introduced in the Netherlands next year. This means that income tax brackets for 2025 will look as follows:
- A tax rate of 35,82 percent on earnings up to 38.441 euros
- A tax rate of 37,48 percent on earnings between 38.441 and 76.817 euros
- A tax rate of 49,50 percent on earnings over 76.817 euros
Low-income allowance lapses
Employers with workers on low incomes (between 14,33 euros and 14,91 euros per hour) will no longer receive compensation for wage costs, as the low-income allowance will lapse from the beginning of the new year.
Cracking down on “fake” freelancing
As of January 1, 2025, the Dutch tax authorities (Belastingdienst) will start enforcing the Employment Relationships Deregulation Act (DBA Act). This means that checks will be carried out to find out if ZZP’ers (self-employed people) or freelancers are experiencing “false self-employment” with employers.
Someone could be considered "falsely self-employed" if they are working for a single client and should instead be directly employed by the company. If there is evidence of companies purposely using freelancers this way, they could face fines or have to back-pay payroll taxes.
People working with children need Dutch language skills
A Dutch language requirement will apply to workers in childcare starting in 2025. Pedagogical staff will need to have level 3F or B2 oral language skills, which means they must be able to speak, have conversations in, listen to and understand Dutch. People who work in preschools will also need to have level B2 reading skills.
Changes to social security, benefits and allowances
If you receive any benefits or allowances in the Netherlands, look out for these changes in the new year:
Higher childcare allowance
With large staff shortages in childcare, daycare centres often need to increase their rates to keep overworked employees and to train new staff. This means that childcare in the Netherlands often costs more than the government allowance covers. To support parents who will be paying more for childcare in 2025, the government will increase the childcare allowance.
In 2024, the maximum hourly rate that the government will cover with the childcare allowance was 10,25 euros. From 2025, this will go up to 10,71 euros per hour. The rate for afterschool care will also increase, going up from 9,12 euros per hour to 9,52 euros.
Child benefit to increase
Families with children up to the age of 17 in the Netherlands who are eligible for the child benefit (kinderbijslag) will receive the benefit for the fourth quarter of this year on January 2, 2025. The child benefit will also increase from January 1, but recipients will only get the new amount for the first time in the second quarter, at the beginning of April 2025.
The Dutch child benefit will see the following increases from January 1, 2025 (in euros):
| Age of child (years) | Child benefit payment from January | Child benefit payment from April |
|---|---|---|
| 0-5 | 281,69 | 286,45 |
| 6-11 | 342,05 | 347,83 |
| 12-17 | 402,41 | 409,21 |
You can find more information about the child benefit increase on the Dutch Social Insurance Bank (SVB) website.
Dutch health insurance is increasing
All health insurers in the Netherlands have announced their premium rates for 2025. Dutch residents can expect to pay around 11 euros more per month for their health insurance next year. The healthcare deductible (eigen risico) will remain at 385 euros until 2027, when it will be reduced to 165 euros.
Higher healthcare allowance
According to the 2025 budget, the Dutch government will increase the maximum healthcare allowance from 123 euros to 130 euros per month for single people and from 236 euros to 249 euros per month for partners.
Pensions set to go up slightly
The five largest pension funds in the Netherlands are not increasing the payout of pensions by much for 2025, as they start making preparations to switch to the new pension system by 2028. ABP, the pension fund for government and education, is implementing the largest increase at 1,84 percent.
Changes for tenants and homeowners
Here are some important changes for housing that people in the Netherlands should know about in 2025:
Rent allowance to increase
If you are renting a home, you may be concerned about all the increasing prices. Luckily, if you meet the conditions, you can receive financial assistance to help with your rent. From January 1, 2025, the rent allowance (huurtoeslag) will increase by a maximum of 12 euros per month.
Landlords can increase rents
Next year, private sector landlords will be allowed to increase the amount of rent they charge by a maximum of 4,1 percent. Homes in the mid-range and social sectors will also see higher rent increases of at most 7,7 percent and 5 percent respectively. However, these two sectors are subject to rent regulation, which limits the overall rental price.
Higher municipal taxes and levies
Based on a survey of figures provided by 113 municipalities, conducted by the homeowners association Vereniging Eigen Huis (VEH), homeowners can expect to pay an average of 4,8 percent more in municipal taxes and levies in 2025. This will vary from city to city, so some homeowners could pay more or less.
Higher mortgage limit with NHG
The National Mortgage Guarantee (NHG) is increasing the limit for a mortgage that potential homebuyers can take out. This will increase from 435.000 euros to 450.000 euros in 2025. If people buying a home invest in energy-saving facilities, this increases further to 477.000 euros. The premium for taking out a mortgage with NHG is also decreasing from 0,6 percent to 0,4 percent.
Mortgage tax relief changes
As changes have been made to the income tax, this will also affect the mortgage tax relief. With new changes, the mortgage tax relief rate will increase to match the income tax rate that a person pays.
For example, workers in the Netherlands earning less than 38.441 euros a year will have a reduced income tax rate of 35,82 percent, which means that they will also have a smaller mortgage tax deduction. This means that they will receive a tax refund of 35,82 percent of their mortgage interest paid over a year.
Water rates to increase sharply
From next year, the price of water for households will increase by around 11 percent. Many water companies in the Netherlands announced plans to implement increases in water rates. For example, Vitens, the largest local water board, is increasing its price per cubic metre (1.000 litres) from 1,04 euros to 1,25 euros.
Changes to Dutch transport
Keep these things in mind as you plan your day-to-day travels in the new year:
Zero-emission zones
As of January 1, 2025, 14 Dutch municipalities have plans to ban vans and trucks of emission class 4 and those that are older than 15 years from city centres. This will happen in Amsterdam, Rotterdam, The Hague, Amersfoort, Zwolle, Delft, Utrecht, Tilburg, Leiden, Assen, Eindhoven, Gouda, Maastricht and Nijmegen.
NS ticket price hike
The biggest Dutch rail expansion in years is set to be accompanied by a significant ticket price hike, NS has confirmed. Using public transport in the Netherlands next year will cost you an average of 6,18 percent more.
Electric car tax break cut
The tax break for electric cars in the Netherlands is set to be slowly reduced until it is completely scrapped in 2030. In 2025, electric car owners will receive only a 75 percent discount on motor vehicle tax.
The purchase tax for an electric car will also be the same as that for a petrol car from the new year as the tax benefit disappears.
Speed cameras on 30km / h roads
As more Dutch cities introduce lower speed limits, the Netherlands is now allowing cities across the country to install speed cameras on roads that have maximum speeds of 30 kilometres per hour.
More expensive traffic fines
For drivers on Dutch roads who fail to follow traffic rules, the new year could be a costly one. Traffic fines for driving offences are set to increase by 10 euros.
Other law changes
And finally, there are a few other new laws coming in 2025 worthy of mention:
Increase in tax on lotto winnings and gambling
If you took part in the Dutch New Year traditions and get yourself a winning lottery ticket, know that you’ll be paying a hefty sum in tax. The tax for lotto winnings and gambling is increasing from 30,5 percent to 34,2 percent.
Interest on student loans increasing
The interest that graduates pay on their loans to study in the Netherlands is set to go up in 2025. The rate is increasing from 2,56 percent to 2,57 percent.
Legal cannabis trial in 10 Dutch cities
Several Dutch municipalities have been participating in a regulated cannabis experiment. From April 2025, only legal and regulated cannabis will be sold in coffeeshops in these cities. The municipalities taking part are Breda, Tilburg, Groningen, Zaanstad, Almere, Arnhem, Nijmegen, Voorne aan Zee, Heerlen and Maastricht.
Say hello to 2025
All in all, 2025 looks set to be a busy year with lots of changes incoming. Think we’ve missed a major change off our list? Let us know in the comments below.