What’s Going On?
If you’re an employer in the Netherlands hiring highly skilled migrants or you’re a high skilled migrant yourself, understanding how the 30% rule interacts with salary requirements is crucial. Recent discussions and a ruling by the Administrative Jurisdiction Division of the Council of State (ABRvS) have caused some confusion. To clarify matters, the IND (Immigration and Naturalisation Service) has issued an information bulletin.
The key question revolves around how the 30% rule, a tax advantage for highly skilled migrants, affects the salary threshold used by the IND to determine eligibility for a residence permit as a highly skilled migrant.
Key Rules
- Gross Salary is King!
The IND always considers the actual gross salary when evaluating whether the salary threshold for highly skilled migrants is met.
2. The 30% Rule Does Not Automatically Lower Gross Salary.
Applying the 30% rule allows employers to pay up to 30% of the salary tax-free. However, this does not mean gross salary can automatically be reduced.
3. Lowering Gross Salary is a Choice.
Employers can choose to reduce the gross salary when applying the 30% rule, but the gross salary must still meet the salary threshold for highly skilled migrants. If the gross salary remains unchanged, the employee simply receives a higher net income due to the tax advantage.
4. Net Salary Agreements.
If you have a net salary agreement, the gross salary must still meet the required salary threshold for highly skilled migrants. You may need to calculate (“gross up”) the gross salary from the net salary to ensure compliance.
5. Retroactive Application of the 30% Rule.
If the 30% rule is applied retroactively after employment has commenced and is approved by the IND, the employer must recalculate the gross salary based on the net salary. If the gross salary then falls below the required threshold, it must be adjusted upwards.
The IND illustrates its position and the application of the 30% rule with two examples provided in its bulletin.
Example 1: Same Gross Salary
A highly skilled migrant earns a gross salary of €5,690, which meets the income requirement (as of 2025):
- Without the 30% rule, their net income is €3,986.67.
- With the 30% rule, their net income increases to €4,844.92, while the gross salary remains unchanged.
Example 2: Same Net Salary
The employee receives the same net salary in both scenarios.
- Without the 30% rule, the gross salary is €5,714.67.
- With the 30% rule, the gross salary is reduced to €4,452.00.
Note that in this case, the lower gross salary (€4,452.00) does not meet the salary requirement for highly skilled migrants. The employer would need to adjust the gross salary upwards to meet the threshold.
Conclusion
When hiring highly skilled migrants and using the 30% rule, it’s essential to ensure that the gross salary meets IND requirements. Employers must carefully consider how the 30% rule impacts the gross salary to avoid issues with permit applications.
Questions about the highly skilled migrant program? Feel free to get in touch with us at info@arslanlitadvocaten.nl or call us at 020 223 24 66. We’ll be happy to assist you!
