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5 important legislative changes as of 1 July

A number of important statutory changes will take place on 1 July 2020. Consider, for example, the increase in the minimum wage, the additional partner leave and the new rates for the taxation of passenger cars and motorcycles (BPM). An overview of 5 important changes.

1. Staff receive additional partner leave

Partners can take additional birth leave from July 1 to 5 weeks when their girlfriend or wife has had a child. Birth leave is also known as maternity leave or partner leave. UWV pays the benefit to your employee, or to you if you opt for this in the application. UWV pays you the benefit of 70 percent of the daily wages up to a maximum of 70 percent of the maximum daily wages. You can decide yourself whether you supplement the benefit to the normal wages.

Also read: UWV reserves an extra 1.6 billion euros for partner leave and transition compensation

The employee must take the leave weeks within 6 months after the birth of the child. The condition is that your employee first takes the standard week of birth leave. For example, your employee can take 1 week (5 working days) leave, but can also spread these 5 working days over 5 weeks. It is also possible to take additional birth leave for less than 5 weeks.

Partners are entitled to additional birth leave if the child is born on or after July 1, 2020. You must report this to your employer at least 4 weeks before you want to start the additional birth leave. You do this by letter or e-mail.

2. BPM rates based on new CO2 test method

From 1 July, the way in which the BPM is calculated will be adjusted, which will have consequences for the price of new cars. BPM rates will be converted in a budget neutral manner based on recent research by TNO. Since September 1, 2018, there is a new CO2 test method for passenger cars: the Worldwide Harmonized Light Vehicle Test Procedure (WLTP). This method provides a better insight into the actual fuel consumption and CO2 emissions of passenger cars than the previous method. TNO has conducted extensive research into the consequences of the new test method on the CO2 emissions of cars. This shows that the CO2 emissions from cars under this new test are higher on average.

Also read: Newsletter payroll taxes 2021 will only follow after Budget Day

On the basis of TNO’s research results, the CO2 rates of the BPM will be adjusted downwards as of 1 July 2020, so that the BPM yield will not increase only as a result of the new test method. The average BPM per car is also expected to remain about the same. However, the BPM may increase on some cars while the BPM may decrease on others.

3. New Guarantee Act

The Guarantee Act is being modernized. This law obliges entrepreneurs such as jewelers, wholesalers in precious metal and goldsmiths to have precious metal objects provided with hallmarks. The test marks ensure that the articles have the precious metal content indicated by the sign. The Telecom Agency supervises this. These quality marks are applied by guarantee institutions designated by the Minister of Economic Affairs and Climate (EZK).

The main changes are:

  • Accreditation becomes mandatory for guarantee institutions
  • The Telecom Agency can impose an order subject to periodic penalty payments
  • The law will be more in line with technical developments in the guarantee process.

4. Increase in minimum wages

The (gross) minimum wage per day is increased by 1.60 percent. The daily wages of the benefits WAO / WIA, WW and ZW will also be increased by that percentage. The maximum employee insurance premium premium will be fixed at EUR 57,232 on an annual basis during 2020. The annual amount is rounded down to whole euros.

Also read: Calculation rules from 1 July 2020

The minimum (youth) wages as of 1 July 2020 (gross per month, per week and per day, in euros, excluding holiday allowance):

Age Month Week Day
From 21 years old € 1,680.00 € 387.70 € 77.54
20 years € 1,344.00 € 310.15 € 62.03
19 years € 1,008.00 € 232.60 € 46.52
18 years € 840.00 € 193.85 € 38.77
17 years € 663.60 € 153.15 € 30.63
16 years € 579.60 € 133.75 € 26.75
15 years € 504.00 € 116.30 € 23.26

5. New EU posting legislation

Until recently, workers from certain EU countries could work at lower wages in another Member State. The European Commission found that this created unfair competition, which is why the revised Posting of Workers Directive was introduced. The Dutch implementation thereof was adopted by the Senate on June 30 and the law will be introduced before the end of July.

The law means that if workers from another Member State have been employed for more than 12 months, they will be subject to the labor law of the host country and allowances (for example for transport) may no longer be deducted from wages. The effective date of this change is only definitive when it is published in the Government Gazette later in July.

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