Questions and answers related to increased RVU threshold exemption amount
Publication date: December 17, 2024
The amount of the so-called monthly RVU threshold exemption is indexed annually and amounts to €2,273 as of 2025. In the bargaining agreement of October 18, 2024, a one-time increased amount of €300 per month was agreed upon by employer and employee organizations and the government. In practice, there are questions about these increases. Reason for KWPS to devote an update to it.
What is the arrangement in a nutshell?
If an older employee stops or has stopped working within three years before the AOW date and continues to be paid an amount of up to € 2,273 gross per month from 2025, the employer can make use of the so-called RVU threshold exemption. The employer then does not have to pay so-called 52% RVU taxes on the continued salary, or a corresponding lump sum. The 2024 amount is €2,183 per month.
Can a benefit started in 2024 be increased to the new amount of €2,273?
Yes, it can. This can be designed through a unilateral increase, a further agreement, or by fixing it in the plan itself. In the latter case, it is agreed that the maximum amount of RVU threshold exemption will be paid, as stated from year to year in the 1964 Dutch Wage Tax Act.
When can the benefit be increased by the nationally agreed €300 gross?
In the October 2024 bargaining agreement, it was agreed that a monthly increase can be applied if there are “squeezing situations.” Before this increase can be applied, a change in law is first required. The increase will not only be the additional exemption of €300 as of January 1, 2026, but also the usual annual indexation of the amount. Thus, as of January 1, 2026, the maximum amount of the RVU threshold exemption will be around €2,675 per month. This can be anticipated in agreements and arrangements, by including a well and conditionally defined right in the arrangement.
What constitutes so-called squeezing situations?
That is determined by employer and employees and they are not expected to use the increased exemption in all cases, without question. If the regular amount is an obstacle to retiring earlier and people cannot continue working healthily, then the €300 increase is opportune. With a probability bordering on certainty, there will be no legal norms for the increased exemption. In this way, the increased exemption will still apply in cases where there is no squeezing situation. This may also explain the relatively modest increase of €300.
