Dutch government to raise minimum wage and reform 30% ruling benefit

Dutch government to raise minimum wage and reform 30% ruling benefit

Sources in The Hague have reported to NOS and RTL Nieuws that the Dutch government is looking to raise the national minimum wage one year earlier than planned, with the first increase now projected to occur in 2023.

Dutch minimum wage to increase by 7,5 percent

Prime Minister Mark Rutte and his cabinet ministers had previously agreed to a two-step increase to the Dutch minimum wage, raising it by a total of 7,5 percent over the course of 2024 and 2025. However, following the Spring Memorandum discussions between the four ruling parties, reports have emerged that the plan will be adjusted slightly due to the Netherlands’ rising inflation rate and growing labour shortage.

New information has revealed that, instead of introducing the 7,5 percent increase in two phases in 2024 and 2025, it will now be done over three phases starting in 2023. The new plan is expected to be approved by the Council of Ministers on Friday. 

Unclear whether pensions in the Netherlands will also benefit

The coalition agreement stated that the cabinet didn't plan to increase state pensions alongside the minimum wage - a decision that has faced significant criticism within parliament. Under the new plan, NOS reports that the first step will see pensions increase in line with the minimum wage. It’s unclear whether the same will be true for the second and third stages in 2024 and 2025.

The left-leaning parties in the House of Representatives (Tweede Kamer), GroenLinks and the Labour Party (PvdA), have asked the cabinet to increase the national minimum wage substantially, and it’s unclear whether the 7,5 percent increase will be deemed sufficient. 

Dutch government to introduce cap for 30% ruling

For the past several weeks, members of the government have been discussing the 2022 Spring Memorandum (voorjaarsnota), which is to be presented to the Tweede Kamer at the beginning of June. While the Prime Minister has refused to confirm which policies will be featured in his cabinet’s budget plan, earlier reports have suggested that higher wealth and business taxes are likely

It also appears that the government will amend the current 30% ruling policy for expats. Rumours that the policy would be scrapped completely have been circulating for weeks, but RTL Nieuws reports that tax benefit will only apply to expats who earn a maximum of 216.000 euros.

Victoria Séveno


Victoria Séveno

Victoria grew up in Amsterdam, before moving to the UK to study English and Related Literature at the University of York and completing her NCTJ course at the Press Association...

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ArjunK2 12:36 | 20 May 2022

tax benefit will only apply to expats who earn a maximum of 216.000 euros- Does this mean people earning less than this will get 30% ruling?

VictoriaSeveno2 13:35 | 20 May 2022

Yes, that's it exactly! The rumours currently circulating suggest the benefit will only apply to people who earn less than 216.000 euros a year. Hope this clears up any confusion!

ArjunK2 13:55 | 20 May 2022

It does! But then again, it’s a rumour, right? When will this be finalised?

VictoriaSeveno2 15:24 | 20 May 2022

The final draft of the cabinet's Spring Memorandum has to be presented to parliament for approval before June 1!

SachinHiremath2 17:34 | 25 May 2022

@victoria Has this decision or proposal been made? I found this good news on the site . It says that the government has decided to cap rather than scrap the 30% ruling which some people who move to the Netherlands to work are able to benefit from. So is this final or will there be any more changes to this decision? Read more at Thanks

VictoriaSeveno2 12:34 | 25 May 2022

Hi Sachin. Yes, the cabinet has now sent the Spring Memorandum to Parliament for approval. In the document, the plans to cap the 30% ruling benefit have been fully outlined and will be phased in gradually from 2024. You can find the full document (in Dutch) on the Dutch government's website:

jeffro2 12:34 | 1 June 2022

Am I reading the latest news on this correctly that the 30% ruling will be introduced in 2024? Will previously approved individuals be grandfathered? Thanks!

VictoriaSeveno2 16:35 | 1 June 2022

Hi there! Yes, according to the Spring Memorandum, the government plans to introduce these changes (i.e. the salary cap) to the 30% ruling in stages, starting in 2024. It is unlikely that the new rules would apply to expats who are already living in the Netherlands and benefit from 30% ruling. Hope this clarifies any confusion!