Dutch government considers €350m compensation for workers facing tax rises

The Dutch government is considering €350 million in compensation for workers facing higher taxes in 2027, State Secretary Eelco Eerenberg said during a parliamentary debate. The proposal is intended to address criticism of the planned tax rise, which currently lacks majority support in parliament.

The government plans to raise taxes on work over the coming years to help pay for increased defence spending. The changes are expected to bring in €3.5 billion in 2027.

Eerenberg said much of the additional burden was already being offset, including by limiting increases to health insurance premiums and through other tax changes intended to support purchasing power. He said €350 million would remain uncompensated.

“If we can add that €350 million to the purchasing-power package, if we can solve that another way together. How wonderful would that be?” he said. The government has not specified how the proposed compensation would be funded or what form it would take.