The Uniform Wage Definition Act [Wet uniformering loonbegrip] will enter into force on January 1, 2013. This Act will implement a single definition of wages for purposes of wage tax, social security premiums, employee insurances and the income-related contribution under the Healthcare Insurance Act (“ZVW”). The introduction of an uniform wage definition is intended to relieve the administrative burden borne by employers, employees and the Dutch tax authorities.

The most important simplifications are:

  • The employees’ share of the general unemployment fund [Awf-premie] and the franchise of the employer's share will be abolished. The base for calculating the employers’ share of the general unemployment fund will be harmonised with that used for the other employers’ contributions.
  • The employers’ payment for employees’ of the income-related contribution under the ZVW will be abolished. Instead, employers will pay contributions directly to the Healthcare Insurance Fund. No wage taxes or social security premiums will be due on these contributions.
  • From 1 January 2013, the addition for the private use of a company car will also apply for calculating employee insurance premiums due.