The maximum tax free allowance for working from home and for commuting costs will again be increased per 1^st January 2024.

From 1^st January 2024, the new tax-free maximum will be:

• Commuting allowance - € 0.23 per kilometer
• Working From Home allowance - € 2.35 per day (still to be confirmed by the tax authorities)

While employers are not legally obliged to offer such a reimbursements, depending on how this is stated in your contracts and policies, you may be obliged to increase your employees reimbursement.

• If you state that you reimburse commuting costs and WFH costs to the maximum tax-free amount allowed, then the amounts will need to be adjusted to reflect the changes in 2024.
• If you state that you reimburse commuting costs and WFH costs at a fixed amount (such as € 0.21 per kilometer for commuting), then you are not obliged to adjust the amount for 2024 although you are free to do so.

Additionally, January 2024 may also be a good time to have your other policies and/or Employee Handbook reviewed to check it is still in line with Dutch law so feel free to reach out to our HR or Employment Law team for more information!

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