Dutch workers to see higher net pay in 2026 after tax changes, payroll firm says

Working people in the Netherlands are set to see their net pay rise in 2026 due to favorable tax measures and adjustments to wage thresholds, according to new calculations by HR and payroll services provider ADP.

An employee earning a modal gross salary of 3,704 euros per month will take home 26 euros more net per month starting in January, ADP said. Minimum-wage employees working 40 hours a week will gain 51 euros net per month. Workers earning twice the modal income, or 7,407 euros gross per month, will see their net pay rise by 37 euros monthly. Those earning three times the modal income will gain 16 euros net per month.

Minimum-wage workers are expected to benefit the most. “This is because the calculations also include indexation, in other words, the increase of the gross minimum hourly wage as of Jan. 1, 2026,” ADP said in an explanation of its figures.

Under the new tax measures, the first income tax bracket will have a slightly lower tax rate, while the upper limit for the 442-euro bracket will be raised to 38,883 euros. The tax rate in the second bracket will increase, but its threshold will also rise by 1,609 euros.

“As a result, in 2026 you will pay slightly more tax on income starting from 38,883 euros, but it will take longer before you fall into the third bracket with the top rate of 49.50 percent,” Karin Stam, an expert on laws and regulations at ADP, told AD.

ADP also said employees earning between 1,000 and 2,000 euros gross per month—including part-time workers and young people earning the youth minimum wage—will see their net income increase in 2026. Earlier projections based on Prinsjesdag plans suggested these groups would continue to lose purchasing power, even though they fell behind this year. A later correction reversed that outlook. Even so, ADP noted that these workers will still have lower net income in 2026 than in 2024.

Pensioners are also expected to receive slightly higher pension payments next year. That increase is mainly due to a reduction in the premium for the Health Insurance Act contribution, known as the Zvw, combined with the modest cut in the first tax bracket rate.