Pay slip
If your wages dropped last year, chances are your wages will grow in 2014. All gross wages under € 4350 will People earning a higher income will see a decline in their net wages. There are several reasons for this. The tariff of tax bracket one has gone up which means you will pay less tax on the first part of your salary. Besides this, general tax exemption will become income dependable. Labour credit will grow for everyone earning up to approximately € 3350 a month. In the coming year it will grow with € 374 to € 2097, causing due taxes to decrease.
In order to see how much you will save in 2014, do the Gross/Net Check!
Pension and AOW (Old Age Pensions Act)
The age at with you are entitled to AOW will be postponed by one month in 2014. This means you won’t receive AOW until you have reached the age of 65 and two months in the coming year. Retirement age will increase to 67 in one go. All existing pension schemes will however remain in place and only new schemes will fall under the latest amendments including the higher age. Due to the recently agreed pension accord there will be some changes in the build-up of pensions. Now, 2.25 percent of income is set aside for the pension, next year this will drop to 2.15 percent. In 2015 this will drop even lower to 1.875 percent. This will result in a lower pension but this will be partly compensated by the higher retirement age. Another consequence is that the net wage will increase because you will pay less, as long as your employer takes it into account. Moreover, a voluntary pension fund for the self-employed will be put in place. Should someone who is self-employed have to rely on social security, then this will not mean that he or she will have to sacrifice the accumulated pension.
Minimum wage, social security and social welfare
The legal gross minimum wage per month will rise from € 1477.80 to € 1485.60. 23-year olds, who are also entitled to minimum wage, will earn more if their wage will stay in line with this obligatory lower limit. Because social security and social welfare payments, such as AOW, ANW, WW and WIA, are linked to the minimum wage, these will also rise.
Company car
The CO2 emission standards will become more stringent, resulting in fewer cars falling under the lowest BIK rates. Moreover, many fuel efficient cars can no longer enjoy VED exemption. Vehicles that emit less than 50 grams CO2 per kilometre will enjoy VED exemption for one more year. Because a number of cars will fall under a higher BIK rate, lease car drivers will have to account for a higher amount in their income.