30% ruling & dismissal

The dismissal and the 30% rule for employees from abroad.

Arbeidsjurist Eindhoven is ready to help you.

30% on severance pay?

30% rule applicable to severance pay? The answer to this question is: no. The 30% ruling does not apply to severance pay. Also not to the statutory transitional compensation. For the 30% ruling to apply, the employee must be paid from current employment. Because a severance payment is salary from previous employment, the 30% ruling does not apply.

Contract

Legal advice and guidance on entering into and/or terminating an employment contract, fixed-term or indefinite-term employment contract. We always negotiate the best terms for you.

Illness & reintegration

Long-term illness can be very unpleasant for both employee and employer. Our employment lawyer will discuss the case, study all the documents and assess your situation. Professional guidance in reintegration.

Settlement agreement

Of course it can happen: your employer wants to end the employment relationship and has offered a settlement agreement. As unpleasant as that is, good preparation is important.

30% rule exemption from work

The 30% ruling cannot be applied if no work is actually performed for the company anymore. According to established case law of the Dutch Supreme Court, salary from previous employment is deemed to exist if the remuneration is not directly attributable to work. If the employee receives salary without work being carried out in return, such as in the case of a work exemption or non-active employment, this is therefore salary from previous employment.

30% rule new employer

Be careful if you want to continue to use the 30% ruling with a new employer. You must then conclude a new employment contract within 3 months. This is a hard and non extendable term. For expats, it is therefore important to find a new employer within 3 months after termination of the employment contract. If this is not successful, the 30% ruling will expire.

FAQ

Questions regarding the 30% rule.

If you come to work in the Netherlands, you will incur additional costs. The cost of living can be higher in the Netherlands. If you meet a number of conditions, your employer can pay you 30% of your gross salary tax-free. No income tax is then levied on 30%.

Example: the salary including the allowance is € 100,000. The untaxed reimbursement of extraterritorial expenses is a maximum of 30% x € 100,000 = € 30,000.

Applying the 30% rule reduces the gross salary. 30% of your taxable wage is paid as a tax-free allowance. A reduction of the gross salary can have consequences for the pension base and any benefits and allowances, such as unemployment benefit and rent allowance. Once the application of the scheme expires, a drop in net income may occur.

You can have the 30% ruling applied by an employer if the following conditions are met.

  1. There must be an employment relationship based on an employment contract;
    The employee must have a specific expertise.
  2. The salary in the year 2021 should be at least € 38.961 gross (excluding 30% ruling).
  3. To be able to use the 30% ruling, you must have lived more than 150 kilometers, as the crow flies, from the Dutch border 24 months before the first day of work in the Netherlands. 
  4. The last condition is that a valid 30% ruling should have been issued. The date of issue determines how long the decision is valid. 

The end date of the 30% ruling is stated on the decision and will in principle be the date of issue of the decision + 5 years. This is because, in principle, the decree is issued for a period of 5 years. The government has shortened the term of the 30% ruling in 2019 from a maximum of 8 to 5 years. 

During pregnancy leave and parental leave you remain entitled to the application of the 30% ruling. The government finds it undesirable that people are no longer entitled to the 30% ruling because of pregnancy leave or parental leave. For the calculation of the gross annual income, you have to assume the annual income as if no leave was taken.

If you are in possession of a 30% ruling and you become unemployed, you will lose your right to the 30% ruling. However, the 30% ruling remains applicable for the remaining period if you start working for a new employer within 3 months (and continue to meet the salary requirement).

A unemployment benefit is calculated by the UWV over the gross salary minus the 30% rule. This means that any unemployment benefit will be lower.

Employment law advice

Do you have questions about the 30% ruling or another employment law question? Arbeidsjurist Eindhoven advises employees and employers when entering into an employment contract. We are also happy to assist you in case of dismissal. No unpleasant surprises, but clear agreements.