GMS Flash Alert 2024-246

Netherlands – Announcement of New Income Requirements for Foreign Workers Starting 1 January

GMS Flash Alert 2024-246 | December 11, 2024

 

The annual indexation per 1 January of the salary requirement that applies to many immigration programmes for skilled-labour migrants in the Netherlands has taken place.  The salary criterion for highly-skilled migrants is contained in the “Foreign Nationals Employment Act Implementation Decree” (Besluit uitvoering Wet arbeid vreemdelingen).  This statute stipulates that the indicated salaries are to be adjusted annually by ministerial regulation with effect from 1 January on the basis of recent index figures for negotiated wages, as published by Statistics Netherlands (Centraal Bureau voor de Statistiek).

In this GMS Flash Alert, we provide information on the new 2025 salary requirements.

WHY THIS MATTERS

Employers that are “recognised sponsors” can enjoy expedited immigration procedures for their highly-skilled migrants provided, principally, they satisfy the salary criterion.

An additional upshot of this expedited procedure is that it can allow for more effective international assignment planning, since the average processing time is around four weeks from the filing date to arrival date, as long as the required supporting documents are provided.  Normally the processing time can take up to three months.

It is of utmost importance that the salary requirement always be met.  While the requirement (generally) remains unchanged during the validity of a residence permit, once an application for an extension is required, this will be subject to the applicable (indexed) salary requirement in the year of filing.  Employers should be aware of these requirements.

Context

As noted above, Dutch-based companies that have acquired official status as recognised sponsor” from the Dutch immigration authorities may benefit from expedited immigration procedures with respect to their so-called qualifying highly-skilled migrants.  Because of the expedited processing times and transparent criteria, the highly-skilled migrant procedure is a very popular immigration channel for companies in the Netherlands.

The main requirement is that the employee satisfies the salary requirement which is set for his/her category as noted below.

Update to Salary Criterion for 2025

The following gross monthly salaries (excluding vacation allowance) apply as of 1 January 20251:

Highly-Skilled Migrant

  • 30 years and older                                                    EUR 5,688
  • Younger than 30 years                                              EUR 4,171
  • Graduated in the Netherlands                                 EUR 2,989

EU Blue Card

  • Highly-educated employees                                       EUR 5,688
  • Graduated in the Netherlands                                    EUR 4,551

These amounts exclude the (mandatory) 8-percent vacation allowance. 

The salary criterion is assessed solely in light of the salary received in cash, i.e., the fixed contractual gross salary in cash, excluding the vacation allowance payable by the employer.  Non-cash salary payments and uncertain salary components such as over-time, tips, and benefit payments are therefore excluded.  However, expense allowances may be included provided they are guaranteed and regularly paid each month.

It is also important that the salary be paid at least monthly into a bank account held by the employee.  The pay-slips must be made available for inspection upon first request by the Immigratie- en Naturalisatiedienst (IND) or Labour Inspectorate (“Inspectie SZW”).

Allowances

Fixed allowances such as a 13th-month payment or fixed year-end bonus may only be included in the gross salary if these are laid down in the contract and if these are paid to the highly-skilled migrant on a monthly basis.  Although it is uncommon that the 13th-month’s salary payment or year-end bonus is paid on a monthly basis, in practice this is the only way it may contribute to the salary calculation.

Applicability of Salary Criterion

Applications that have been filed before 1 January 2025, are subject to the 2024 salary criterion.  The 2024 criterion also applies in situations where the “Entry and Residence” (Toegang en Verblijf; “TEV”) application was filed before 1 January 2024, although the highly-skilled migrant will only arrive in the Netherlands in 2025.

The same salary criterion also applies to applications for residence permits that are filed for “intra corporate transfer” applications under the EU-ICT Directive. 

In addition to these residence permit applications, the salary criterion also applies to the following types of applications for a work permit:

Short stay by highly-skilled migrants – This programme is limited to group employees in a key or specialist position who are employed by a recognised sponsor and work for a maximum of 90 days in the Netherlands within a period of six months.

Application in the context of an intra-group transfer – There are special categories for key positions, knowledge transfer, and management trainees.  The salary criterion for highly-skilled migrants older than 30 years of age applies to the first two categories.  For trainees, the lower criterion for migrants younger than 30 years of age applies.

Highly-skilled migrants resident in another EU member state but working in the Netherlands – This programme is particularly attractive for employers in the border region, who are thus able to employ highly-skilled migrants although they do not live in the Netherlands. 

MEIJBURG & CO. INSIGHTS

Companies that make use of the highly-skilled migrant procedure need to be aware of the new criteria to determine if their employees satisfy the conditions.  The new criteria apply to every application filed after 1 January 2025.  There is no requirement to adjust the salary if the employee still holds a valid residence permit; but note that the employee should meet the new requirement if his/her permit is up for renewal.

The EU Blue Card scheme could be attractive for employers who are not recognised sponsors but would like to employ highly-educated employees.  It could be especially advantageous for non-EU nationals residing in another EU member state who already have an EU Blue Card in that member state.   

Footnote:

1  See Staatscourant, page 2 under H: *stcrt-2024-39288.pdf .

RELATED RESOURCE:

See our recent publication on the Meijburg & Co website: Annual adjustment of salary criterion for highly skilled migrants 2025 | Meijburg & Co Tax & Legal.

Contacts

Heleen Snieders

Partner, Immigration

KPMG in the Netherlands

More information


Disclaimer

* Please note the KPMG International member firm in the United States does not provide immigration or labour law services. However, KPMG Law LLP in Canada can assist clients with U.S. immigration matters.

The information contained in this newsletter was submitted by the KPMG International member firm in the Netherlands.

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