The third Tuesday of September was that time again! On Prince’s Day, the Cabinet announced plans for next year. This day has positive and negative consequences for everyone in the Netherlands, including entrepreneurs. That is a subject close to our hearts. We list some of those consequences for you, following the plans, read by King Willem-Alexander, for 2024.
Untaxed compensation lower for your staff
As an employer, you may give certain perks to your employees tax-free, via the working expenses scheme. Consider, for example, Christmas hampers or sports season tickets. The total amount must then stay under your so-called free space, which is calculated based on the payroll of all your employees combined. In 2023, this free space had been increased, but it is now being reduced to 1.92% up to a wage bill of €400,000. That means: you have fewer opportunities to give tax-free perks to your staff, namely €7,680.
Sustainable business grants
Investment in climate by both government and business remains necessary. Consequently, there are several subsidy schemes for sustainable business. Busy innovating? The budget of the innovation scheme (Wet Bevordering Speur – en Ontwikkelingswerk) will be increased incidentally and structurally! A scheme giving entrepreneurs a leg up on researching new innovations! In addition, the budget of the Investment Subsidy for Renewable Energy and Energy Saving (ISDE), will be increased by €1.38 billion. This grant is intended for residential or commercial property preservation. New in 2024 is that this subsidy may also be used for insulation measures.
Minimum hourly wage
Employers are required to pay the minimum wage by the hour starting in 2024. Now using the minimum monthly wage, we calculate the hourly wage and multiply it by the number of hours a person works. The disadvantage is that this would create differences between industries in which a full work week consists of 40 hours and industries in which a full work week consists of 36 hours. As a result, you may have rising costs as an employer, in addition to the inflation adjustment.
Of course, these are just some of the changes you will face as a business owner. Be sure to check out the central government website to see the full list of decisions announced on Prince’s Day! Need help setting up your startup? Then click on the link below to discover our programs!