4.1ÌýÌýÌýÌý Work-related costs scheme (WKR)
The work-related costs scheme (werkkostenregeling, WKR) is sometimes also referred to as the labour cost scheme. It enables employers to spend part of their total taxable wage (the 'discretionary scope') on allowances, benefits-in-kind and provisions for their employees tax free.
No wage tax is due on amounts within the discretionary scope. A final levy of 80% must be paid on any amounts paid above the discretionary scope. No health insurance premiums, or income-dependent employer's health care insurance contributions are payable over the final levy amount. See 2.1.1.
The discretionary scope is a percentage of the company's entire salary costs. In 2023, the discretionary scope is:
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•ÌýÌýÌýÌý 1.92% over the first EUR 400,000 of the wage costs (3% in 2023)
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Web page updated on 17 Mar 2025 16:03