THE NEW DUTCH TAX PLAN AND WVOI CAO IN A NUTSHELL
On January 1, 2016 the Dutch government has introduced a new (income) tax return programme. Since this date the eleventh Collective Labour Agreement (CAO) of the WVOI also is in effect. What are important changes? A round-up of some of the new laws, taxes and salary scales.
Working in the Netherlands you will need to pay tax on your income. As your employer, the Royal NIOZ will withhold wage tax from your gross salary. That salary is part of the employment conditions for research institutions as formulated by the Dutch WVOI and trade union representatives.
To make sure the already-paid wage tax is balanced with personal financial aspects (mortgage, et cetera) you have to file an annual (income) tax return before May 1, 2016. Make sure you do. It is probably worth your while: about 95% percent of all people working in the Netherlands will profit from the new tax regime.
Some insights? From January 1, 2016, the second and third tax bands in the Dutch tax system are widened. The maximum tax rate of 52% starts at €66,422 and a new, lower rate of 40.4% will cover income from €19,923 to €66,421. Due to the late agreement on the tax plan for 2016 the net wages change per April 1, 2016.
If you like to know how the new taxes influence your personal financial position, please check out the tax calculator at Deloitte, PWC or RTL (Dutch). We gladly inspire expats to visit the Dutch tax authorities for a full background on the Dutch tax system.
At the Royal NIOZ benefits are based on the Collective Labour Agreement for Research Centers (CAO-OI). The eleventh CAO agreement was concluded on November 30, 2015 by WVOI (representing the research institutions), FNV, AC/FBZ, VAWO/CMHF and CNV. Together these organizations are committed to offering attractive employment conditions package for people working within Dutch research institutes.
Again we have good news. Salary increases as of 1 January 2016. The sums in all salary scales have been permanently increased by 2.85% (including PhD positions).
Employees who were employed on September 1, 2015 and were still employed on December 1, 2015 have received a one-off non-pensionable payment of €200 gross in proportion to the size of their employment and a one-off non-pensionable payment of 0.42% over their annual salary in 2015.
From January 1, 2016 all amounts in Royal NIOZ salary scales are to be increased with 1.4% from the release of pensions premium by 1 January 2016. If the wage agreement is complemented by a cross-sector arrangement, the increase of 1.4% is adjusted accordingly.
You can read about the CAO agreement 2016 for research institutions here or download the pdf. For the CAO 2016 in Dutch, click here.