Most Dutch workers' net salary to increase in 2017

Wallet
July 1 is the day that many things will change in the Netherlands which will affect the wallet of many citizens..

Almost all Dutch workers will get out a higher net salary in 2017, according to payroll administrator AD Nederland. People earning a gross salary of 1,750 euros will see the biggest increase, nearly 0.75 percent. That's about 11 euros net per month, NU.nl reports.

The net salaries are increasing because workers are paying less tax in 2017. While the tax rate in the second and third brackets are increasing from 40.4 percent to 40.8 percent, most workers will benefit from higher tax credits. For example, employees with a gross salary of three times the average income will receive 28 euros more in labor tax credit, while the increased tax rate will cost them about 7 euros more a month. That means that all in all the worker will get 21 euros net more.

ADP also looked at other tax changes. Households who earn between 20 thousand and 67 thousand euros a year will have a somewhat higher tax advantage in 2017 when it comes to deductions such as mortgage interest. For example, a household with a 250 thousand euro mortgage with 3 percent mortgage interest, will save 22 euros per year. But people with an income that falls into the 4th tax bracket will have to deal with restriction of mortgage interest deductions. In that case the mortgage interest deduction will be 28 euros lower than in 2016.

Families with two working parents and kids in childcare will get slightly more than comparable families with only one working parent. The latter group is actually worse off because this year the non-working parent gets 145 euros less in tax deduction. 

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