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.
Corecom is well deserving of this award which places it in fine company with a small elite of other organisations that truly understand and engage the value of people. They place a high commitment on continually developing the business, demonstrated through the passion and enthusiasm of everyone from the MD to the team members. The innovation culture is evident throughout and employees have lots of ideas for successful change. They say that they are listened to and believe that Corecom is a great place to work, with very high levels of trust both upwards and down. People see that it has a great future and there are excellent levels of optimism throughout.
