Changes work cost related scheme (WKR)
Free space (non-taxed space)
As of January 2020 the free space in the WKR will be 1.7% of the fiscal salary up to
€ 400,000 a year, above that it stays 1.2%.
Especially for the smaller companies as well as director and major shareholders this means an extra space for expense reimbursements within the scheme.
Final wage tax levy
The period in which the final levy needs to be paid will be expanded. In present this needs to be filled in the first declaration period after the year. Now this will be expanded to the second declaration period.
As of 2020 employees who buy company products will pay the economic value for the products they buy.
Certificate of good conduct (VOG)
Cost for the VOG will no longer be a part of the free space in the WKR.
As of 2020 this will be an target exemption and no longer tax need to be paid on it.
Payroll tax reduction Act (WBSO)
The way the companies need to apply for the S&O tax reduction (WBSO) will be simplified and shortened. In present you can file for it 3 times a year. As of 2020 this will be expanded to four times a year.
Old age pension (AOW)
In the coming year, the agreements made in the pension agreement concluded in June 2019 will be further elaborated. The budget of the Ministry of Social Affairs and Employment already takes into account the introduction of some measures. For example, the delayed rise in the state retirement age is financed with the austerity of the LIV and the youth LIV.
As a result of the pension agreement, the state pension age will rise less rapidly than previously agreed. The state pension age will be set at 66 years and 4 months for the next two years. After that, the state pension age will rise to 67 in 2024. In the old situation, the state pension age would go to 67 in 2021.
The state pension age will now looks like this:
2020: 66 year + 4 months (born after 31 August 1953 & before 1 September 1954)
2021: 66 year + 4 months (born after 31 August 1954 & before 1 September 1955)
2022: 66 year + 7 months (born after 31 August 1955 & before 1 June 1956)
2023: 66 year + 10 months (born after 31 May 1956 & before 1 March 1957)
2024: 67 year (born after 28 February 1957)
Low income benefits (LIV and youth LIV)
As of 2020 the low income benefits for employees and youth employees will be changed.
For employees who are 22 or older, this will be maximised on € 1,000 a year.
For employees who are 18 and not older than 21 the benefit will be halved. (Youth LIV).
Finally in 2024 the youth LIV will be abolished.
Benefit regular employee as of 2020
|Average hourly wage||LIV per employee per paid hour||Maximum LIV per employee per year|
|€ 10,05 – € 12,58||€ 0,51||€ 1,000,00|
Benefit youth employee as of 2020
|Age on 31-12-2019||LIV per employee per paid hour||Maximum LIV per employee per year|
|18||€ 0,07||€ 135,20|
|19||€ 0,08||€ 166,40|
|20||€ 0,30||€ 613,60|
|21||€ 0,46||€ 946,40|