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The Dutch payroll landscape is changing rapidly. For international employers, 2026 brings stricter compliance requirements, new salary caps, tightened rules on extraterritorial costs, and further digitalization of EU mobility processes. This article explains what your organization needs to do to avoid risks, fines, and administrative burdens.

New payroll parameters and premiums: what will change in 2026?

In 2026, the maximum premium wage will increase to €79,409, an important threshold for calculating employee insurance benefits such as the AOW (General Old Age Pensions Act), Anw (General Surviving Persons Act), AWf (General Aw), and AOF (General Pensions Act). The employer levy for the Health Insurance Act (Zvw) will also be set at 6.10%, with the same income ceiling. These parameters must be configured correctly in all HR and payroll systems.

Impact for employers

  • Payroll software must be updated before January 1st.
  • High incomes must be revalidated.
  • The classification between low and high AWf premiums must be configured correctly.

 

Reimbursement of Extraterritorial Expenses (ETK) Restrictions Stricter from 2026

Employers who reimburse extraterritorial expenses (ETK) to expats must be aware of restrictions. From 2026 onwards, certain expenses will no longer be tax-free, including: Gas, water, and electricity costs, Private use of telephone calls to the home country.

These expenses may be reimbursed through the tax-free allowance of the WKR, provided they are designated as final-levy wages.

When is an international employer subject to Dutch payroll?

Even without a Dutch entity, employers may be required to register with the Dutch Tax and Customs Administration. This is the case as soon as an employee works in the Netherlands, regardless of the company's location.

Important to know:

  • The workplace dermines the withholding obligation, not the country of employment.
  • Payroll registration is required for even one employee
  • Errors can lead to additional assessments, fines and the risk of ‘permanent establishment’

What should your organisation do now?

  • Check salaries of expats and cross- border workers
  • Update all payroll software promptly
  • Reconsider ETK policy
  • Establish processess for digital EU declarations and A1 management
  • Consider EWC (Employer of Record) for international expansion

 

Conclusion

2026 will be a key year for international payroll compliance. Stricter guidelines, higher premium ceilings, and EU digitalization require proactive preparation. Companies that adapt their processes in a timely manner will increase their compliance and their attractiveness as employers for international talent.

👉 Need help with payroll for international employees?

Courdid supports organizations with compliant international payroll, expat regulations, and cross-border HR processes.

Contact us for a free consultation.