700,000 low-income workers in Netherlands face €400 tax hike in 2025
Approximately 700,000 low-income workers in the Netherlands are paying significantly more income tax in 2025 due to changes in the tax system, according to labor union FNV, AD reports. The union is calling on the government to reverse the increase, which it describes as a “buffelboete” — a penalty for people who “work hard in low-paying jobs.”
The tax increase stems from a structural change introduced by the Dutch government at the start of the year. A new tax bracket with a lower rate was added to benefit low and middle incomes. However, to fund this measure, the government reduced the general tax credit and adjusted the employment tax credit. As a result, the lowest earners are now paying more, not less.
FNV Handel chair Linda Vermeulen said most affected workers are losing around 400 euros per year. “These are the people who stock our stores, care for the elderly, and welcome children at daycare,” she told AD. “Instead of rewarding them, they’re being penalized.”
Workers affected include employees in call centers, retail chains, pharmacies, maternity care, childcare, and social employment services. According to FNV, many of these workers have part-time contracts and limited ability to increase their hours.
The union began receiving complaints in January after the first 2025 paychecks were issued. “Workers reported they were suddenly losing several tens of euros per month,” Vermeulen said. The union investigated and concluded that the policy was negatively impacting hundreds of thousands of people, particularly part-timers and women.
“Three-quarters of the workers affected are women,” Vermeulen said. “They’re most likely to work part time. But even if they wanted to work more, many employers don’t offer full-time contracts.”
FNV is launching a formal campaign to demand the policy be reversed. The union has started a petition and is urging coalition parties PVV, VVD, NSC, and BBB — currently in talks over the spring budget — to remove the measure.
“This cabinet claims to prioritize security of livelihood, but this tax change directly undermines that promise for 700,000 people,” Vermeulen said.
Tax expert Edwin Heithuis, professor of fiscal economics, confirmed that the reforms disproportionately affect low earners. “This is a group that’s already under financial pressure,” he said to AD. “Even 30 euros per month makes a difference for them.”
Heithuis warned that financial stress can lead to mental and physical health problems, which ultimately place a greater burden on government services. He called the additional 300 million euros the government is collecting through this tax change “relatively minor,” and said the situation should be correctable.
He does not believe the government intended to raise taxes on this group. “If that had been the plan, it would have come up during the 2025 tax plan debate in the Tweede Kamer,” he said. “And FNV would have raised objections at the time, when it still could have made a difference.”
Heithuis said the unintended consequences show how complex the Dutch tax system has become. “Some effects only become clear once paychecks are issued. That appears to be what happened here.”
“It’s not fair that people with part-time jobs and low wages are paying more,” said Karin Koldenhof, a pharmacy assistant from Zutphen. “Not everyone has the option to work more. Many people are caregivers or have families to care for.”
Koldenhof, who has worked in pharmacies for over 30 years and currently works in Dieren, said her take-home pay dropped by 30 euros per month. “I’m not poor, but I’m not rich either. And 30 euros is a lot of money when everything else is getting more expensive.”
