On Budget Day 2023, the government made a series of crucial announcements for the HR sector. Despite an outgoing government, extensive plans have been unveiled that will shape the labor market and HR in the Netherlands in 2024. These changes, ranging from labor market reforms to tax adjustments, come at a time when the sector is adapting to contemporary challenges such as false self-employment, pension transparency and sustainability.
We summarize the most important changes for you:
- Labor Market and Contracts:
- Faster access to permanent contracts.
- Restriction of flexible contracts.
- Abolition of zero-hour contracts.
- Increasing the interruption period for temporary work from six months to five years.
- Reduction of uncertain phases in temporary employment from 5,5 years to 3 years.
- Tackling abuses among migrant workers.
- Employment agencies must meet minimum requirements and be certified.
- Financial Changes:
- Purchasing power increases by 1,8%.
- Increase in housing allowance, child budget, social assistance benefits and AOW.
- Increase in the employment tax credit.
- Legal minimum wage per hour is introduced.
- Adjustments in tax rates and income brackets.
- Working from home:
- Introduction of the Work Where You Want Act.
- Simplifying the provision of public transport cards to hybrid employees.
- Possible adjustment of the homework allowance.
- Training and Development:
- Abolition of the STAP scheme.
- Expansion of the SLIM scheme for learning and development in SMEs.
- Working Conditions:
- Development of an Arbovision 2040.
- Training more company doctors.
- Compensation for working with hazardous substances.
- Action program against sexual misconduct and sexual violence.
- Self-employed and self-employed people:
- Amendment of the DBA Act.
- Further reduction of the self-employed person's deduction.
- Mandatory disability insurance for the self-employed.
- Possible pension accrual for self-employed people.
- Tackling bogus self-employment and establishing a minimum hourly rate.
- Representation of self-employed people in the Social Economic Council.
- Miscellaneous Other Changes:
- Reporting obligation on CO2 emissions for organizations with 100+ employees.
- Tackling labor market shortages.
- Modernization of the SUWI Act and milder enforcement.
- Adjustments to the Participation Act.
- Simplification of the unemployment benefit and individual fulfillment of the job application obligation.
- Elaboration of the new pension law.
- Introduction of external dispute resolution bodies for pensions.
- Options for survivor's pension.
