Tax cuts and extra allowances mean take home pay has increased
On 20 September 2022, the Dutch government presented its Tax Plan for 2023. The top rate for personal income tax will remain at 49.5% but the basic rate for income up to 73,031 Euros has been reduced from 37.07% to 36.93% as of January 1, 2023. What this means, according to calculations by salary experts ADP, is that someone on an average salary of 3,086 Euros per month will now have 91 Euros a month more to spend. Those on the newly agreed minimum wage of 1,934 Euros per month will have an extra 218 Euros a month in take home pay from this January due to the 10% increase in the minimum wage and the tax cuts. However, high earners on a twice the average salary income of 6,173 Euros per month, will only be 98 Euros a month better off, but an increase in net income nonetheless.
Additionally, the tax-free travel allowance allows employers to pay employees who use their own means of transport to travel to work. The maximum of tax-free travel allowance increased from 0.19 Euros per kilometre to 0.21 Euros as of January this year. And employers can also increase the home working allowance paid to staff. This lets employers reimburse employees for the additional household expenses incurred through regularly working at home. It covers, for example, heating and lighting costs, additional insurance, metered water, telephone or internet access charges and the allowance went up from 2 Euros to 2.15 Euros per day. However, it’s worth noting that although these increased allowances are now acceptable with the tax man, employers may not always pay these rates.
The Covid-19 pandemic has had a devastating effect on children with cancer and their families. Extended periods of separation and isolation, anxiety and financial hardship have all taken their toll and the need for our specialist support has become ever more critical. However, sadly, at Candlelighters, we saw our fundraising grind to a halt during the pandemic, which is why we put Team 500 into motion. And we are so thrilled that Corecom have come on board with supporting us on this initiative. In going above and beyond their fundraising goals, we are able to continue to provide critical support and make life a little brighter for the 150 families in Yorkshire devastated by a cancer diagnosis each year.
“Thank you Corecom Consulting for your support, it means the world to us and to our families.
