Employers may no longer deduct housing costs from minimum wage

What changes?

Do you employ staff, such as migrant workers, and do you arrange housing for them? Then there will be a change for you. In future you are no longer allowed to deduct housing costs from their statutory minimum wage. Now you can still deduct a maximum of 25% of the statutory minimum wage towards housing costs. This will end.

With his change in law the government wants to better protect migrant workers. Abolishing the rule should prevent abuse and make housing costs fairer. This change will also make it easier for the Netherlands Labour Authority (Nederlandse Arbeidsinspectie, NLA) to check whether employers pay the legal minimum wage.

For employers this means that they can still offer housing, but they need to arrange this differently. For example with a separate rental contract. Employees will then pay the rent themselves, for instance via direct debit. This way taking care of housing still lies with the employer, but you arrange this differently.

For whom?

• employers hiring migrant workers
• companies that arrange housing for staff

When?

It is expected this change will take effect on 1 January 2026. From then on, the percentage you are allowed to deduct will decrease by 5% each year. On 1 January 2023 you can no longer deduct anything from the minimum wage for housing.

Please note: The effective date of this measure is not yet final. Entry into force is subject to its passing through the Lower and Upper Houses (Tweede en Eerste Kamer) of parliament. After publication in the Staatsblad or Staatscourant (Government Gazette, in Dutch) the law can take effect.