In 2026, WKR free space is 2.00% of the fiscal wage bill up to €400,000 and 1.18% above it. The first rate will rise to 2.16% on 1 January 2027. On 9 October 2026, Parliament had not approved the proposal to end the staff-discount exemption for own products.
Why this matters
A staff benefit can pass through management, HR, finance and payroll. A manager approves it. Finance books the invoice. Payroll decides its tax treatment. Missing details leave gaps in the WKR file. Unused free space expires at year-end. Spending above it can trigger an 80% final levy for the employer. Targeted exemptions and workplace nil valuations stay outside the free space when their conditions are met.
Example
A retailer gives staff a standing discount on its own products. The till records purchases. HR checks eligibility. Payroll applies the tax treatment. The current exemption allows a 20% discount, capped at €500 per employee each calendar year. If Parliament approves the proposal, the discount may use shared WKR free space or count as wages. Payroll then needs complete till records and clear employment terms. Otherwise, someone must search old transactions at year-end.
XTROVERSO tips
- Give the WKR file one owner. Put one person in charge of the running total. Managers, HR, finance and payroll should send staff-benefit details to that person.
- Keep one list of staff costs. Record gifts, events, reimbursements, equipment, discounts and other benefits. Link each item to its invoice, approval, booking account and payroll treatment.
- Choose the treatment at approval. Record whether an item uses free space or another WKR treatment. Do this before the invoice enters the monthly close.
- Check the position each month. Compare the WKR record with staff-cost accounts and the fiscal wage bill. Include benefits already promised but not yet invoiced.
- Review staff discounts now. Record eligibility, discount percentage, annual use, contract wording and the source file. This prepares the business if Parliament approves the 2027 proposal.
- Include tax risk in the cash forecast. Estimate any year-end excess and the possible 80% final levy. Include that cash cost in annual planning.
Need a clear route from staff-benefit approval to payroll and WKR records? We can help put it in place
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
- Belastingdienst — Werkkostenregeling en vrije ruimte
- Ministerie van Financiën — Evaluatie werkkostenregeling 2019–2024
- Rijksoverheid — Werkkostenregeling en wijziging vrije ruimte
- Ondernemersplein — Voorgestelde wijziging personeelskorting
- Belastingdienst Kennisgroepen — Aanwijzen en gebruikelijkheidstoets
- Salaris Vanmorgen — Administratieve druk rond de WKR
