Tax cuts and extra allowances mean take home pay will go up in January


Someone earning a modal salary of €3,086 will be €91 a month better off in January, according to calculations by salary processing company ADP.

And people earning the minimum wage of €1,934 per month will have €218 more to spend, thanks to the 10% increase agreed by the government as well as tax cuts, ADP said.

But those earning twice the modal wage – €6,173 – will only have €98 more in take home pay.

In addition, employers can increase the home working allowance paid to staff from €2 per day to €2.15, while travel expenses rise from 19 cents to 21 cents per kilometer.

‘This might be okay with the tax office but it does not mean employers have to make the payments,’ ADP spokesman Dik van Leeuwerden said.

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