News item | 16-12-2025 | 12:15
On January 1, 2026, a number of rules will change in the area of the Ministry of Social Affairs and Employment. Below is an overview of the changes.
Minimum hourly wage
The minimum hourly wage increases due to indexation. The minimum hourly wage for employees aged 21 and over will increase from €14.40 to €14.71 gross per hour. Fixed minimum youth wages apply to employees aged 15 to 20. The minimum youth hourly wages are derived from the statutory minimum hourly wage.
Benefits
All benefits increase through indexation. This includes the Participation Act benefits (social assistance), IOAW, IOAZ, AOW, ANW, Orphan’s benefitWajong, WW, IOW, WIA, WAO, Sickness Benefits Act and Benefits Act.
Child benefit, childcare allowance and child-related budget
Parents receive higher reimbursements as a contribution to the costs of children. This concerns child benefit, childcare allowance and child-related budget.
The government is investing €199 million in a higher childcare allowance for working parents. Working parents with a joint income of up to €56,412 will therefore be reimbursed for 96% of the costs up to the maximum hourly price. Parents with a higher income also receive a higher reimbursement percentage.
The maximum hourly prices for childcare will increase. This means that the maximum hourly price for day care is € 11.23, for after-school care € 9.98 and for childminder care € 8.49.
It child-related budget increases slightly for single parents with an income up to € 29,736. Couples with an income of up to €39,141 also receive slightly more. If the parents’ income is higher than these amounts, parents may receive a slightly smaller child-related budget.
Child benefit increases due to indexation.
Participation Act in balance
The cabinet is amending the Participation Act. With simpler rules and more financial security when people return to work from social assistance. The additional income limits for working while retaining benefits are being expanded. There will be clear rules for receiving gifts (up to €1,200 per year, without affecting the benefit). And municipalities will soon be able to provide assistance retroactively. This prevents people from being without income in the first period and therefore accumulating debts. The law also relies more on trust in professionals in implementation and people on social assistance.
New pension system
On January 1, more than 9.5 million pensions will be transferred to the new system. This means that more than half of the participants will switch to the new system by 2026.
Exemption from RVU levy increased
Employees who do heavy work can retire three years early through the Early Retirement Scheme (RVU). They receive a benefit from their employer until their retirement age. Employers do not have to pay additional tax (RVU levy) on this benefit. The amount increases due to indexation to € 2,357 gross per month.
To make the RVU more accessible to employees with a low income or little supplementary pension, the employer can provide a maximum of € 300 gross per month extra on top of the basic RVU benefit (net equivalent to an AOW benefit). Parties to the collective labor agreement can make agreements about this. Employers do not pay extra tax on the extra amount.
State pension age
The state pension age remains 67.
Changes in wage cost benefit
For older employees and employees with a disability, employers can receive the wage cost benefit (LKV). For older employees (56 years and older), the wage cost advantage will be abolished as of January 1, 2026. For employees who joined the employer before January 1, 2024, the employer will keep the wage cost advantage.
It becomes easier for employers with more than 25 employees people with disabilities who fall under the target group jobs agreement. The wage cost benefit job agreement applies from 2026 as long as the employee is employed. Previously, the LKV applied for a maximum of three years. Also, a special target group statement from UWV is no longer required to receive this benefit.
From school to sustainable work
Young people at a distance from the labor market receive better guidance in the transition from school to work. Municipalities, schools and transfer points are obliged to work together to prevent young people from dropping out. For example, schools will offer additional career guidance, even after young people have left school. And municipalities offer more preventive and appropriate support back to school, work or a combination of work and learning. The guidance is available for young people up to the age of 27 from MBO (level 1 and 2), VSO, PRO and early school leavers.
Transition compensation
The transition payment upon dismissal increases through indexation and amounts to a maximum of € 102,000. Or, if the annual salary is higher than € 102,000, a maximum of 1 gross annual salary.
Caribbean Netherlands
The statutory minimum wage and benefits on Bonaire, St. Eustatius and Saba will increase through indexation. Employees on Bonaire, St. Eustatius and Saba are also entitled to emergency leave and short-term care leave. Childcare is becoming more affordable for parents due to the BES Childcare Act. The law contributes to the development of children and makes it easier for parents to work. Households with a minimum income on Bonaire, St. Eustatius and Saba receive an energy allowance of $1,300 per year.