The National Institute for Budget Information (Nibud) warns about this.
“Companies are doing everything they can to get staff. Employers are increasing wages and Schiphol temporarily gives employees at the airport a summer bonus of €5.25 per hour. Such a supplement means a welcome increase in the annual income, but it may also mean that, according to the Tax Authorities, they are less entitled to rent and health care benefits and the child-related budget,” writes Nibud.
annual income
Tax allowances are seen as a contribution towards the costs, but as the income increases, the allowance in turn decreases. The tax authorities look at the total annual income and then divide the allowances over 12 months, so that people receive the same amount every month.
Nibud points out that people who receive a temporary summer allowance will receive a higher annual income and will therefore have to repay the excess in allowances received at the end of the year.
Refund
In a calculation example, Nibud shows that this recovery quickly ends up in the paper. “A single person who works full-time for the minimum wage and pays € 600 in rent, receives € 287 in rent and health care allowance every month. With a summer allowance of € 5.25, however, he is only entitled to € 164 in rent and care allowance. If this employee does not report the wage increase in time, he will soon receive more than € 120 too much per month, which he will have to repay later.”
Nibud calls on you to pass on the pay increase to the tax authorities as soon as possible. “Paying back is very difficult for people because they have often already used the money. We therefore believe that this should be avoided as much as possible. We advise companies and trade unions to help employees with a summer allowance to notify the tax authorities of the expected annual wage as quickly as possible. Their allowances can then be adjusted accordingly.”