The maximum tax free allowance for working from home and for commuting costs will again be increased per 1st January 2024.
From 1st January 2024, the new tax-free maximum will be:
- Commuting allowance - € 0.23 per kilometer
- Working From Home allowance - € 2.35 per day (still to be confirmed by the tax authorities)
While employers are not legally obliged to offer such a reimbursements, depending on how this is stated in your contracts and policies, you may be obliged to increase your employees reimbursement.
- If you state that you reimburse commuting costs and WFH costs to the maximum tax-free amount allowed, then the amounts will need to be adjusted to reflect the changes in 2024.
- If you state that you reimburse commuting costs and WFH costs at a fixed amount (such as € 0.21 per kilometer for commuting), then you are not obliged to adjust the amount for 2024 although you are free to do so.
Additionally, January 2024 may also be a good time to have your other policies and/or Employee Handbook reviewed to check it is still in line with Dutch law so feel free to reach out to our HR or Employment Law team for more information!