Be prepared for developments in employment and pension law in 2026

From 1 January 2026, the following changes to wages, remuneration and allowances will apply:

• Minimum wage: For employees aged 21 years and over, the minimum hourly wage will rise from EUR 14.40 to EUR 14.71 gross. Adjusted youth minimum wages will apply for employees aged 15 to 20, based on the regular minimum wage.
• Working from home allowance: The tax-free allowance will increase from EUR 2.40 to EUR 2.45 per day.
• Senior Executives in the Public and Semi-Public Sector (Standards for Remuneration) Act (WNT): The general remuneration maximum is set at EUR 262,000, an increase from the amount of EUR 246,000 applicable in 2025.
• Statutory transition payment: The statutory maximum will increase to EUR 102,000 (from EUR 98,000 in 2025), or one gross annual salary if that is higher.
• Wage cost subsidy (LKV): The subsidy for older employees (56 years and above) will be discontinued for employment agreements that started on or after 1 January 2024. For employees hired before that date, the subsidy remains for up to three years.

Since 1 January 2025, the Tax and Customs Administration has been actively enforcing bogus self-employment (schijnzelfstandigheid, see also: Netherlands Supreme Court and parliament takes aim at bogus selfemployment in 2025). The first year was a soft landing: corrections and additional tax assessments were imposed, but no fines were levied, allowing contracting parties to adjust their arrangements.

This transition period was due to end on 1 January 2026, but the transition will be partially extended, according to the State Secretary for Finance to the House of Representatives (Tweede Kamer) on 18 December 2025.

From 2026 onwards, the following will apply:

• Penalties for intentional or gross negligence will again be imposed.
• Additional wage tax assessments will still be possible for periods prior to 2025.

Until 2027, non-compliance will not bring fines, and enforcement will generally start with a company visit. After 2027, these conditions will also lapse.

On 2 December 2025, the Senate passed a bill that extends the transition period to the new pension system by one year. This gives implementing parties, such as pension funds and insurers, extra time for a careful transition. In addition, transition dates will now be regulated by an Order in Council (AMvB). This enables quicker government intervention if further extensions of the transition period are necessary.

The draft bill implementing the European Pay Transparency Directive in the Netherlands, which enforces equal pay between men and women, is currently before the House of Representatives (see also: Draft bill pay transparency for men and woman: towards equal pay in the Netherlands). The plan was to submit the bill to the Council of State before the end of 2025 with parliamentary debate in 2026. The intended entry into force is 1 January 2027, meaning the Netherlands will miss the European deadline of 7 June 2026.

This does not mean that employers should adopt a wait-and-see approach. Employees can already enforce equal pay under the existing Dutch Equal Treatment of Men and Women Act and the principle of equal pay for work of equal value. Courts may interpret these existing Dutch laws and regulations in line with the directive, aligning as closely as possible with its provisions.

The UWV will be given extra time to assess employees who have been ill for more than two years. The decision period for WIA assessments and reassessments will double from eight to 16 weeks. This extension will begin on 1 January 2026 and end when no longer necessary.

For employers, this does not mean dismissal applications for long-term illness must be postponed. A formal WIA decision is not an absolute requirement. Recent and adequate medical information, however, must be provided, such as a statement from the company doctor on recovery prospects within 26 weeks and the possibility of performing the stipulated work in an adapted form. The longer decision period may affect employees' willingness to settle.

On 7 July 2025, the final bill on Assessment of Employment Relationships and Legal Presumption (Clarification) Act (Vbar) was submitted to the House of Representatives. This bill is part of a broader labour market reform and introduces a test with ten criteria to determine whether work is performed by a self-employed person or an employee. In addition, there is a legal presumption of employment for hourly rates below EUR 36. (See New reality for self-employed in Netherlands with VBAR bill and recent Supreme Court case law ruling)

The planned entry into force is 1 July 2026, but the bill must still be passed by the House of Representatives and the Senate.

On 10 December 2025, a bill was submitted to the House of Representatives restrict compensation for transition payments in cases of dismissal due to long-term incapacity. Under the bill, the compensation scheme will only apply to small employers (i.e. fewer than 25 employees). Medium-sized and large employers will no longer receive compensation, as they are deemed to be able to bear this situation.

The planned entry into force is 1 July 2026, but the bill must still be passed by the House of Representatives and the Senate.

In short, 2026 brings changes in employment and pension law. From extended WIA assessments and adjusted compensation to stricter enforcement of bogus self-employment and an extended pension transition: employers must anticipate these changes in good time to remain compliant with legislation and regulations. Proactive planning is essential for a smooth start to the new year.

Would you like to know more or exchange ideas regarding the developments in employment and pension law in 2026? Please contact us, we look forward to discuss this with you.