Income ratio concept to be amended as per 1 January 2023

The concept of an income ratio will be formulated more strictly. Many preparations will be necessary to ensure the proper processing of wages, also in international situations (salary splits, change of contribution obligation, etc.).

Source: Ministry of Social Affairs and Employment, 23 April 2021

The concept of income ratio (IKV) will be formulated more strictly as of 1 January 2023. The SUWI Decree has been amended on this point. This has the necessary consequences for the method of remuneration of cross-border employees, such as expats. Changes in contribution obligations, salary splits, treaty application must all be processed in one IET. It will then no longer be possible to split up. See also the new IKV knowledge document. The implementation date is January 1, 2023, because it is expected that employers and payroll software developers need time to prepare for these changes.

The Decree on Income Ratio that leads to changes in the SUWI Decree and the Employee Insurance Wage Decree can be found here https://www.rijksoverheid.nl/documenten/besluiten/2021/04/23/stb-2021-198