If you run a small business, you learn quickly that “tax changes” aren’t abstract. They show up as questions at the coffee machine, a surprised look at a payslip, and the quiet work of keeping payroll, invoices, and trust steady. The 2026 adjustment to the employment tax credit, arbeidskorting, is exactly that kind of change: modest on paper, real in daily conversations, and worth understanding before it lands in your admin workload.
The arbeidskorting is a tax credit for people who work: it reduces the income tax they pay, so their net salary can be higher without you changing the gross wage. What’s changing in 2026 is the timing. The government is lowering the income thresholds where the credit “bends” into a new rate, the so-called “kink points.” In plain terms: the credit builds up earlier in the income range, which tends to help people who work part-time or earn at the lower end. (The table applies to people not yet at AOW age, the Dutch state pension age, because the tax rules differ once someone reaches it.)
Here’s the practical shape of it. Up to €11.965, the credit grows as a percentage of income (8.324%). From €11.965 to €25.845, it grows faster: €996 plus 31.009% of the income above €11.965. After that, the credit flattens and eventually phases out, reaching €0 from €132,920. The “bottom line” you’ll notice in your team is simple: lower incomes and many part-timers often end up with a bit more net pay, while higher incomes can see slightly less advantage because the system is being rebalanced.
For you as an employer, the risk isn’t financial shock, it’s misunderstanding. Your wage cost doesn’t magically drop, but an employee may feel like they got a raise (or, at higher incomes, wonder why the net didn’t move as expected). Picture a 24-hour-a-week colleague who suddenly takes home a little more and assumes you adjusted something; that’s where small businesses win or lose goodwill. It helps to be calm and clear: “Your net changed because the tax credit changed; your gross and our contract didn’t.” That one sentence prevents unnecessary friction.
There’s also a planning angle. If you’re hiring for flexible hours, or you’re negotiating with someone who cares about net more than gross (which is most people), this credit can slightly change how attractive a part-time offer feels, especially near the lower-income bands. It’s a reminder to keep your payroll software and withholding settings current, and to check that people who should apply the payroll tax credit (loonheffingskorting, the choice to apply tax credits via one employer) have their paperwork right. Those details are boring, until they create an avoidable complaint, correction, or refund later.
This isn’t a headline-grabber, and it doesn’t need drama. But small shifts like this are exactly what separate “tax stuff” from real business: fewer questions, fewer corrections, and a steadier sense that the numbers add up. Make the adjustment once in your payroll process, mention it once in human language when needed, and move on, because the best admin is the kind that doesn’t steal your attention twice.
