
The Dutch government has introduced new rules on income and work, effective from January and July 2026
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In 2026, the government amended various rules relating to wages, income and employment. Some of these changes came into effect on 1 January and others on 1 July. This has implications for many people in the Netherlands. In this article, we explain exactly what has changed.
Minimum wage goes up in 2026
The
Separate
Benefits increased in 2026
On 1 January and 1 July 2026, various benefits were increased. This means that people receiving certain benefits will get a little more money each month. The increase applies to
Below are examples of the welfare benefit amounts from 1 July 2026. The amounts include
• Whether married or living together, from the age of 21 up to the
• Single people, aged 21 to state pension age: the benefit will increase from €1,401.50 to €1,419.46 per month.
• Whether married or living together, from the state pension age onwards: the benefit will increase from €2,144.16 to €2,176.10 per month.
• Single person, from state pension age: the benefit will increase from €1,564.69 to €1,587.34 per month.
Child benefit, childcare allowance and child-related budget in 2026
In 2026, the amounts for
The child benefit has increased with effect from 1 July 2026. The new amounts apply to July, August and September 2026. The SVB will pay this child benefit on 1 October 2026.
For these three months, the amount per child is:
For a child aged 0 to 5 years: €298.40.
For a child aged 6 to 11 years: €362.35.
For a child aged 12 to 17 years: €426.29.
In 2026, the government will invest €199 million in an increased childcare allowance for working parents. Working parents with a combined income of up to €56,412 will have 96 per cent of their childcare costs reimbursed, up to the maximum hourly rate.
Parents with a higher combined income receive less than 96 per cent of the costs reimbursed. The exact percentage depends on their combined income and on whether it is their first child or a subsequent child. For the first child, the percentage ranges from 36.5 to 95.5 per cent. For a subsequent child, the percentage ranges from 68.2 to 95.6 per cent.
On the Dutch government’s website, you can find out which percentage applies to your income.
The maximum hourly rates for childcare in 2026 are:
Day care: €11.23 per hour.
Extracurricular care: €9.98 per hour.
Childminder care: €8.49 per hour.
These are the highest hourly rates on which the government bases its childcare allowance calculations. If the hourly rate for childcare is higher than this, parents must pay the difference themselves.
The child-related budget will also change in 2026:
Single parents with an income of up to €29,736 will receive a slightly higher child-related budget than in 2025.
Parents with an allowance partner and a combined income of up to €39,141 will also receive a slightly higher amount.
Is the income higher than these amounts? If so, parents will receive a slightly lower child-related budget in 2026 than in 2025.
Dutch Participation Act to be updated in 2026
From 1 January 2026, new rules set out in the ‘
There are clear rules governing
In addition, municipalities may provide welfare benefits with retroactive effect. This means that a decision also applies to a period prior to the date on which the decision was taken. For example, the municipality may pay welfare benefits for a previous period. This is possible for a maximum of three months. In doing so, the municipality takes the applicant’s personal circumstances into account. In this way, the government aims to prevent people from experiencing financial difficulties or falling into debt.
The government has introduced these changes because the old rules under the Dutch Participation Act were often too strict and too complicated. There was too little scope to take people’s personal circumstances into account. The emphasis was too much on monitoring and too little on support.
With the ‘Dutch Participation Act in Balance’, the government aims to adopt a more trust-based and people-centred approach. Municipalities will be given greater freedom to help people, particularly in finding suitable work and building a stable income.
The exemption from the RVU levy will be higher in 2026
Some employees in physically demanding jobs can stop working up to three years before reaching state pension age under the
Employers do not have to pay any additional tax on an RVU benefit up to a certain amount. Since 1 January 2026, this amount has been capped at €2,357 gross per month.
To make the arrangement accessible to people on low incomes or with little
Employers and
The rules governing the wage cost advantage have changed in 2026
Employers can receive a
The wage cost advantage for older employees aged 56 and over will be abolished with effect from 1 January 2026. For employees who joined the company on or after 1 January 2024, the employer will no longer receive the wage cost advantage in 2026.
Did an employer take on an older employee before 1 January 2024? If so, the employer may continue to receive the wage cost advantage under the old rules for up to three years.
The rules for employees in the job agreement target group have also changed. This is a group of people with an occupational disability for whom employers and the government are trying to create additional jobs. If an employee from this target group joined the company on or after 1 January 2026, the employer can claim the wage cost advantage for as long as the employee remains in employment. This applies until the employee reaches state pension age.
Did an employee from the job agreement target group start employment before 1 January 2026? If so, the previous maximum period of 3 years applies.
From 1 January 2026, a separate target group declaration from
Support for the transition from school to work has improved since 2026
From 1 January 2026, young people who are distanced from the labour market will receive better support during the transition from school to work.
Municipalities, schools and
Municipalities provide faster and appropriate help to young people. This help is aimed at going back to school, finding work or a combination of work and learning.
Counselling is designed for young people up to age 27 who:
• Are taking an MBO course at level 1 or 2.
• Are currently enrolled in or have previously attended
• Who left school without a basic qualification.
The maximum transition allowance will be higher in 2026
The maximum
The maximum transition allowance is €102,000 gross.
Is the