Key changes for HR in 2024

2024 is upon us! A new year brings changes, and in the HR field it is no different. We would like to list for you what the changes are for this year in the field of labor and salary legislation.

Changes within salary and benefits

Uniform hourly wage

As of Jan. 1, 2024, there will no longer be a statutory minimum daily, weekly or monthly wage, but a statutory gross minimum hourly wage. This will be €13.27 per hour for employees aged 21 and over. The minimum youth wage has also been adjusted with this change.

Travel reimbursement

In 2023, the tax-free travel allowance was already increased from €0.19 to €0.21 per kilometer. In 2024, this amount will be increased again to €0.23 per kilometer.

Home work allowance

Along with the tax-free travel allowance, the untaxed home-work allowance will also increase. In 2023, this allowance was €2.15 per homework day. This amount will increase in 2024 and is expected to reach €2.35 per day.

Changes within the labor law

Widening exemption from OV card

Traveling by public transport should become more attractive for employers and employees. Therefore, from January 1, 2024, it will no longer matter which way employers provide a public transport card, the tax consequences will be the same for all methods. Previously, there was a lot of administration around tracking usage, withholding and remitting payroll taxes when the employee did not use the OV card sufficiently. If an employee uses the OV-card for both private and business purposes, the employer does not have to withhold and remit any payroll taxes. He or she also no longer has to check whether the reimbursement does not exceed the actual costs of business use.

Workfare

In 2023 came the temporary widening of the free space in the work expense scheme. This meant 3% over the first €400,000 of the fiscal wage bill . However, this was a temporary arrangement and will be reversed in 2024. The standard rate for the working expenses scheme will again be 1.92%. The percentage of 1.18% over the first €400,000 of the wage bill will remain the same.

Mandatory CO2 reporting

Do you have an organization size of 100 employees or more? If so, you will be required to submit a CO2 report from July 1, 2024. This report contains the CO2 emissions caused by business and commuting traffic of employees. The 2024 report must be submitted to the RFO no later than June 25, 2025. However, there is an exception. Do you not offer a mobility scheme such as reimbursement or other transportation options? Then your organization is exempt from this reporting requirement. This is because there is no administration to submit.

Capping 30% rule for expats

As of 2024, the "capping measure" of the 30% rule will go into effect for foreign employees. This means that, under strict conditions, foreign employees may receive 30% of their income tax-free for a maximum of five years. With the 'capping measure', this tax benefit may not exceed the Top Income Standardization Act. This amount is €233,000.

Changes within the labor market

Crisis regulation staff retention

With the desire for greater flexibility for employers, there will be within the labor market package the "crisis staff retention scheme. This scheme will allow employers to redeploy employees internally during a business crisis or emergency. In addition, employers can request employees to temporarily work fewer hours. The purpose of this new measure is to allow employers to adjust their workforce during times of emergency without losing valuable labor.

End of income benefit

With labor market policy adjustments, there are several changes to income benefits in 2024. For example, the youth Low Income Benefit (LIV) will disappear on January 1, 2024, and the LIV will be completely abolished in 2025. As of 2026, the wage cost benefit for older employees will also disappear.

Improvement for the disabled

With the elimination of several income benefits, there is, however, improvement in the wage cost benefit for reemployment of disabled employees.

More on the changes in 2024

Do you have questions about any of the above changes, are you dealing with any of them or want to know what it means for your organization? Then contact paraDIGMA groep. Our labels have knowledge and expertise in all areas of sustainable employability and ensure that your organization remains future-proof.