Almost everyone in work will take home more pay this year than in 2023, according to calculations by salary processing company ADP.
The increase is largely down to changes in the tax-free allowances and increases in the minimum wage, and the ADP calculations do not include pay rises or incremental increases.
The tax-free allowance changes mean that “everyone has a bigger discount on their income tax,” said ADP’s Dik van Leeuwerden in the Telegraaf. “So almost everyone has several tens of euros more to spend.”
For example, people earning a modal income of €3,395 will have €79 more a month to spend. A household with twice the modal income will also benefit by €79 a month, ADP said. Tax-free travel expenses have also risen from 21 cents to 23 cents per kilometre.
Youngsters, however, may find themselves worse off because employers are now required to start deducting corporate pension premiums at 18, rather than 21.
Thank you for donating to DutchNews.nl.
We could not provide the Dutch News service, and keep it free of charge, without the generous support of our readers. Your donations allow us to report on issues you tell us matter, and provide you with a summary of the most important Dutch news each day.Make a donation