Employers no longer allowed to deduct rent from the minimum wage
There is a plan but the government has yet to decide
The government has proposed a change in rules. The proposal will also be debated in the Lower and Upper Houses of Parliament. The proposal may therefore still change, but it can be helpful to be aware of this in advance.
For whom?
- employers who deduct rent from their employees’ minimum wage
- employment agencies that deduct rent from employees’ minimum wage
What changes?
Do you arrange housing for your employees? In future, you will no longer be allowed to deduct rental costs from the minimum wage. Does your employee earn more than the minimum wage? In that case, subject to certain conditions, you may still deduct rent from wages above the minimum wage.
Currently you are allowed to deduct up to 25% of the minimum wage for housing. This is subject to certain conditions, for example, the accommodation must be certified.Â
The government wants to put a stop to this practice. In doing so the government wants to prevent employers from charging too much rent for housing. The government also wants to make migrant workers less dependent on their employers.
When?
This change is expected to take effect on 1 July 2028. The government intends to abolish the deduction when a new Act on appropriate tenancy agreements comes into force.