From 1 January 2027, employers may no longer apply the employment tax credit to certain occupational-disability benefits paid through payroll. This ends unequal tax treatment based on the payment route. Affected employees may see lower net pay on their payslip.
Why this matters
About 11,000 benefit recipients may face financial consequences. Most are expected to receive less net income. A wage and a benefit may appear on one payslip, yet follow different tax rules. Incorrect coding can lead to payroll corrections and staff questions. Payroll can estimate the effect from the income it processes. It cannot confirm an employee’s final annual tax position.
Example
An employee receives wages and a WGA benefit through the same employer’s payroll. From January 2027, payroll no longer applies the employment tax credit to the benefit. Net pay may fall while the employee’s hours and gross wage remain unchanged. The employer can explain the payslip calculation. It cannot promise the final annual tax result. Other income may affect that result.
XTROVERSO tips
- Find the affected payroll files. List employees who receive a social-security benefit through payroll as well as wages. Check the benefit type, payment route, and supporting UWV record.
- Keep payment components separate. Show wages and benefits separately in the payroll file and ledger. Keep the UWV record in the correct employee file.
- Check the provider’s payroll plan. Ask which software update applies and when you can run a test. Agree who approves the first affected payroll run.
- Prepare the employee conversation. Explain that the rule is changing and net pay may change. Payroll can provide an estimate, not a final tax assessment.
- Use final 2027 guidance. Check final Belastingdienst and UWV instructions before changing payroll settings. They must confirm the benefit scope and processing rules.
Need help checking payroll records and preparing staff communication? We can help with the practical steps
The data, sourcing, and analysis behind this article were conducted by Linda Pavan. AI was not used to identify sources, build the factual basis, or produce the analytical judgment contained here. AI was used only as a drafting aid. The final English text was personally reviewed, edited, and approved by Linda Pavan before publication.
References
- Rijksoverheid – Kabinet verandert regels arbeidskorting voor uitkeringsgerechtigden
- Hoge Raad – ECLI:NL:HR:2024:1657
- Rechtbank Den Haag – ECLI:NL:RBDHA:2026:9745
- Rijksoverheid – Heffingskortingen en arbeidskorting
- Belastingdienst – Handboek Loonheffingen
- Salaris Vanmorgen – Geen arbeidskorting meer over uitkering werknemer per 2027
