Based on the budget that the Dutch government announced on Prinsjesdag 2024, payroll service provider Visma Raet has calculated that people working in the Netherlands who earn an average income will see an increase in their monthly net salaries. Here's what you can expect for your income in 2025.

Changes to Dutch incomes in government budget

In the budget, the government confirmed changes to the income tax brackets and tax credits. The following adjustments will see changes to your salary from January 2025:

Lower-income tax bracket

A new lower-income tax bracket will be introduced for workers who earn up to 38.441 euros a year. This first bracket will have a new tax rate of 35,82 percent. The second bracket will cover earnings between 38.441 and 76.817 euros, and will have a tax rate of 37,48 percent. Finally, the third bracket will cover earnings over 76.817, and will be taxed at a 49,50 percent rate.

Changes to tax credits

Tax credits are breaks for income tax. The employment tax credit will increase from 5.532 euros in 2024 to 5.599 euros in 2025, while the general tax credit will drop by 335 euros from 3.362 euros to 3.027 euros. 

Effects of budget on incomes in the Netherlands

According to Visma Raet, the government’s plans mean that workers who earn an average salary in the Netherlands - which in 2024 stands at 3.433,68 euros a month - will see a 1,53 percent increase of 42,91 euros added to their accounts every month from January 1, 2025. Those with salaries double the average 2024 income (6.867,28) will have an extra 56,58 euros per month in their pockets - an increase of 1,26 percent.

People who earn minimum wage will also be affected, but it will depend on how many hours the person works:

• 36 hours per week - Net salary drop by 4,75 euros to 2.059,08 euros (0,23 percent decrease)
• 38 hours per week - Net salary increase by 16,75 euros to 2.150,05 euros (1,11 percent increase)
• 40 hours per week - Net salary increase by 24,58 euros to 2.229,19 euros (1,11 percent increase)

Kyra Pluimakers, a spokesperson for Visma Raet, has said that many people will see a rise in their incomes next year due to the introduction of the new tax bracket, but some will see an overall decrease due to the lower general tax credit. This also doesn’t take purchasing power into account, which will increase by just 0,7 percent - a lot less than the 1,1 percent that was expected.

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