Employees in the Caribbean Netherlands do not have to pay tax on the upcoming increase in the minimum wage. A proposal to this effect by D66 and ChristenUnie received the support of a majority in the Second Chamber last night.

The amendment by MPs Grinwis (CU) and Van Weyenberg (D66) provides for the tax-free threshold to be raised to the level of the statutory minimum wage, which will be increased to 1,750 dollars as of July 1, 2024. State Secretary Marnix van Rij (Taxation and Tax Administration) had advised against the amendment. He thinks it is an untargeted measure because middle and higher incomes also benefit.

However, a majority in the Second Chamber – including Van Rij’s own CDA – was sensitive to Van Weyenberg’s plea: “My colleague Wuite of D66 and the Neer Ceder of the ChristenUnie have fought for years for the minimum wage to go up, but we must prevent what people receive extra in one hand from disappearing through the other.” VVD, PVV, JA21 and Pieter Omtzigt voted against.

The Tax and Customs Administration has announced that the necessary system adjustments can be made in a timely manner. The measure will cost the government 1.5 million euros, after which 3 million euros annually.

The amendment is part of the 2024 BES Tax Plan. That is why Grinwis, Ceder and Van Weyenberg also put a motion to the vote to ensure that increases in the minimum wage cannot be “skimmed off” by the tax authorities after 2024. This was also adopted, with the votes of VVD, PVV and JA21 against. The 2024 BES Tax Plan itself was adopted with only the votes of Forum for Democracy against.

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