Netherlands Payroll Taxes 2025: Loonheffingen and WKR Planning
Navigate Dutch Payroll Taxes in 2025
The Netherlands combines wage tax, national insurance, employee insurance, and healthcare contributions into loonheffingen. HR teams must understand each component to maintain compliance and forecast labour costs.
Wage Tax and National Insurance
Bracket rates for 2025 remain 36.97% up to €75,625 and 49.5% above. Employers withhold both wage tax and national insurance contributions, applying tax credits automatically. Monitor adjustments for foreign employees using the partial non-resident regime.
Employee Insurance Premiums
Employers fund Unemployment Insurance (WW), Disability Insurance (WIA), and the Healthcare Insurance Act (Zvw). Rates vary by sector; ensure payroll software uses current UWV tables. Directors-major shareholders (DGAs) may be exempt from certain premiums.
Student Loans and Childcare Allowances
Employees repaying DUO student loans require additional withholding calculations. Provide annual statements to support childcare allowance applications (kinderopvangtoeslag), which depend on gross salary data.
Working Cost Scheme (WKR)
The WKR free space remains 1.92% of the first €400,000 wage bill plus 1.18% thereafter. Track benefits in kind (company parties, Christmas gifts) to avoid the 80% final levy. Classify targeted exemptions (e.g., training, equipment) correctly to preserve free space.
Payroll Taxes and International Workers
Arrange tax residency registrations (BSN numbers) and apply the proper payroll tax tables for non-residents. Use the RDA form when paying employees abroad to ensure correct wage tax deductions.
Reporting and Deadlines
Submit monthly payroll tax returns (loonaangifte) by the end of the following month and settle payments simultaneously. Year-end tasks include issuing 2025 annual statements (jaaropgaven) by February 1, 2026.
Best practice: Conduct quarterly audits of payroll classifications, WKR usage, and employee insurance rates to avoid penalties and maximise tax efficiency.