King approves increase in pay for parental leave

Paid parental leaveparental leave) introduced in the Netherlands by Royal Decree of 26 April and will amount to 70% of the parents' salary. A Royal Decree to this effect was published on the website of the Dutch Senate on 10 May. Details - here.

To say more about Wet betaald ouderschapsverlof (Payable Parental Leave Act) is unique in the Netherlands. It was adopted by the Senate (Eerste Kamer) on October 12, 2021. Until the fall of 2021, there was no paid parental leave in the Netherlands, except that some companies paid their employees something to support young dads and moms.

While the law was discussed and adopted, there was a discussion about what period can be paid and how much to pay a parent when he goes on maternity leave. As a result, the parliamentarians prescribed in the law a norm of 9 weeks of paid leave and an allowance of 50% of wages. But they provided for the possibility of “increasing the amount of the allowance before the entry into force of the law,” and already in January of this year, the coalition decided to increase the allowance. And now, by Royal Decree, the amount of the allowance is finally approved at 70% of the maximum daily wage (“tot maximaal 70% van het maximale dagloon”).

What is the result:

From August 2, 2022, employees are entitled to 26 weeks of parental leave for the first eight years of a child's life. Part of the vacation - 9 weeks - is paid at a rate of 70% of the wage rate. The remaining 17 weeks of vacation are not paid, but they can be “broken up” and taken until the child turns 8 years old. We already wrote about it: Paid parental leave - Nalog.nl BV

Important:

The right to 9 weeks of paid leave can only be used during the first year of a child's life. Parents of foster children can also take such leave. If not all nine paid weeks were used in the first year, they may be added to the remaining 17 weeks of parental leave, but will no longer be paid.

The higher costs of paid parental leave are estimated at approximately €195 million per year for the Dutch budget. Since the law will come into force on August 2, 2022, benefit costs in 2022 are lower, at approximately €65 million. The implementation of the law is entrusted to the Ministry of Social Affairs and Employment, headed by Ms. Van Gennip, who submitted relevant proposals to the Senate and House of Representatives.