International employees
Simplification of ETK scheme
For incoming employees, extraterritorial expenses are more strictly delineated. Additional living expenses and private call costs with the home country will no longer be covered by untaxed ETK from 2026. Other costs, such as double housing and travel to the home country, remain possible. The 30 per cent rule remains unchanged substantively with this adjustment. The simplification follows previous moves.
A motion was passed on 25 September asking the government to further reduce or abolish the ETK scheme if necessary. Consider additional proposals that may impact fees and policies.
Tip:
Review expense policy and payroll codes for incoming employees.
Note:
Inform concerned employees in time to avoid surprises.
At a glance
- Status: Announced for 2026
- Effective date: 1 January 2026
- What is changing: Living expenses and private call costs no longer ETK; other items remain.
- Impact for HR: Adjustment of reimbursement matrix and communication.
- Actions: Update policy and coding. Check pending files.
- Risk in doing nothing: Reassessments due to incorrect application.
30 per cent rule – salary cap and further simplification (motion)
From 2026, the maximum salary limit will apply to everyone. The excess above 262.000 euro does not count towards the 30 per cent rule. This brings the maximum untaxed allowance to 78.600 euro.
In addition, on 2 October 2025, a motion was passed requesting the government to further limit the 30 per cent rule, for example, to specific professional groups, for a maximum of three years and with an income cap. Further details may follow.
Tip:
Make an overview of all 30 per cent files and check the salary cap.
Note:
Take into account possible additional restrictions following the motion.
At a glance
- Status: Salary cap finalised by 2026; motion for further simplification submitted 2 October 2025
- Effective date: 1 January 2026 (cap 262.000 euro)
- What is changing: Maximum untaxed allowance 78.600 euro; possible further restrictions.
- Impact for HR: Recalibrate remuneration packages and contracts.
- Actions: Check salary positions. Be prepared for further simplification scenarios.
- Risk in doing nothing: Retention problem and budget impact.
Knowledge migrant scheme: tightening in preparation
Targeted tightening of the knowledge migrant scheme. Think higher salary criteria for young talent, a stricter test for market conformity and tougher requirements for recognised sponsors. Payroll constructions will be limited where possible.
The aim is to prevent abuse while keeping the recruitment of scarce specialists possible. SER opinion and further elaboration determine follow-up.
Tip:
Keep vacancies and salary offers under review, especially for candidates under 30 and recent graduates.
Note:
Once a decision has been made, a minimum implementation period of one year will apply.
At a glance
- Status: Proposed by outgoing cabinet; SER opinion sought
- Effective date: To be determined (at least 1 year after decision)
- What is changing: Possibly higher salary criteria, stricter recognised sponsor requirements, and a more systematic market test.
- Impact for HR: Adjustment of recruitment and compliance processes.
- Actions: Map current files and salaries. Update policies and templates.
- Risk in doing nothing: Rejections or withdrawal of recognition in case of non-compliance.