Everything You Need to Know About The WKR in 2023

The new year is upon us and for HR that means the exciting world of changes to tax codes in the Netherlands. OK, we admit this usually isn’t adrenalin fuel.  But, 2023 does bring good changes though! Specifically, to your employees’ benefits. Scroll to the bottom to find out how Ajuda can help your company take advantage of the WKR in 2023!

So what do you need to know? 

What is the WKR?

First, let’s start with the WKR. n the Netherlands, "WKR" stands for "Werkostenregeling" (in English which translates to: "Act on Qualifying Work and Reintegration Companies"). The WKR is a Dutch law that was introduced in 2011 and was introduced to simplify the rules and legislation around employee compensation. As to if your company qualifies for the WKR let’s save that conversation for another day.   

What’s changing in the WKR this year?

In the Dutch tax system, it’s possible for employers to give employees tax-free compensation up to a certain amount. That certain amount is called the ‘free space’ in the WKR. In 2023 that ‘free space’ is growing. 

What does that mean for HR staff?

For the first €400.000 on the payroll, employers can now compensate their employees tax-free for 3% instead of the previous 1,7%. Meaning that the free space for the first €400.000 of the payroll has been increased from €6.800 to €12.000.

That’s a lot of math! What does the total come to for companies?

In total, this is an extra €5.200 that now be used tax-free to compensate employees.

How can employers use this on their employees?

Employers can use this to compensate for goods and services the employee has a benefit from in their personal life. Like gym memberships, coffee machines, language courses, or all of them combined.

So that’s everything you need to know about the WKR changes for 2023. Just one more thing…

How can Ajuda help?

Not only will you be keeping up with some of the top HR trends (which you can read more about here). This extra allowance is an easy way to attract and retain talent. That’s why Ajuda is here to save the day! With Ajuda, your employees can choose what they want with this budget. Not only that but since everything is pre-approved you can set it and forget it!

Want a demo? Just fill out the form here and one of our benefits experts will get it set up!