Attention employers: deductions from the minimum wage for accommodation are being phased out (and will cease in 2030).
Are you an employer and do you arrange accommodation for your employees? If so, please be aware of a potential change: the government has published a draft amendment to the Minimum Wage and Minimum Holiday Allowance Decree, which proposes to phase out the deduction from the minimum wage for accommodation costs from 2026 onwards. Under this proposal, this deduction would even be abolished entirely from 2030 onwards.
What exactly is changing?
At present, you are allowed to deduct a maximum of 25% from the minimum wage for accommodation. From 2026, this will be:
- 2026: maximum 20%
- 2027: maximum 15%
- 2028: maximum 10%
- 2029: maximum 5%
- 2030: deductions will no longer be permitted
Who is this important for?
This change will mainly affect employers who currently make use of this deduction scheme. In many cases, this concerns sectors where migrant workers are employed and where the employer also arranges accommodation. The new rules mean that you will need to start thinking in good time about how you will organise the costs of accommodation differently in future.
Preparing for the future
Although the changes are being introduced gradually – this is, after all, an initial draft proposal – it is important to start preparing now. Consider alternative ways of providing accommodation or new arrangements with your employees. This will help you avoid any surprises later on and ensure you continue to comply with the law.