As part of the new round of tax reforms, the Government is planning further hikes to wages as of 2025. Three changes are expected related to personal deduction and tax rates. People who already take home above average salaries should feel the greatest benefits of all. The first measure announced by the Ministry of Finance back at the beginning of July is the increase of the personal deduction from € 560 to € 600. That refers to the non-taxable part of a person’s monthly income, for which the plan is currently an increase of € 40. Another change, which yet again primarily benefits those already taking home high salaries, is the raising of the threshold for taxation at a higher rate of income tax. Incomes above € 4,200 per month are now taxed at a higher rate (from 25 to 35.4%), and this threshold is set to be increased to € 5,000.
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For more information, please contact Paul de Beer or Oana Ciuca, De Burcht (Scientific Bureau for the Dutch Trade Union Movement) p.t.debeer@uva.nl or the Head of communications at the ETUI, Mehmet Koksal mkoksal@etui.org. For previous full issues of the Collective bargaining newsletter please visit https://www.etui.org/Newsletters/Collective-bargaining-newsletter or consult the archive with all articles in our database at www.cbnarchive.eu.
You may find further information on the ETUI at www.etui.org.