Trade unions happy about cuts to migrant worker schemes, companies not: ‘hinders the power of innovation’

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  Economics Editor

Trade union FNV is positive about the reduction of the expatriate scheme, which the House of Representatives voted in favor of last night. The union has been against tax benefits for foreign employees for some time, because they could lead to unfair competition between employees from the Netherlands and abroad.

“The question is whether fewer expatriates are coming to the Netherlands now,” says FNV Director Petra Polster. “This basically means that employers can ‘deduct’ some of the tax benefits for foreign employees in order to reduce their wage costs.”

Because of the tax advantages, the employer pays a lower gross salary to the expatriate with the same net salary compared to the domestic employee. “In that sense, what we have now with the gradual reduction in benefits is fairer and better,” Polster said. The association believes it is good to have a transitional arrangement for current expatriates, “so that they are not immediately affected by the reduction in expenses.”

Employers’ organization VNO-NCW is concerned: “This scheme is important to keep the Netherlands attractive for scarce international talent. This is especially important for high-tech companies and research institutions in the global ‘war for talent’. And also because we have so little talent.” “The flow into technical specialties in our country. Many countries have now successfully copied these types of schemes from us and they are becoming increasingly attractive.” Economic Affairs Minister Adriaansens also expressed her concerns today.

Almost half of the employees at IT company Datavezel use this scheme. “This will have an impact on how attractive we are,” says founder Kay Packer. “The best talent expects a higher salary, so we will have to pay more. We have room for such investments, but some companies do not.”

Outside Booking.com in Amsterdam, we spoke to Rahul Chandnani, who has been working there since 2019. For him, the expatriate scheme was not a reason to come to the Netherlands. “I didn’t even know about it before I moved here. It was just an added bonus.”

The 30 percent scheme now applies for another five years and will expire for him in several months. “I will miss it when my period ends, it will save about 1,000 euros a month. But I will find my way, that’s life. I think austerity will play a role for some in the decision to come here but not for others.” “.

Just Eat Takeaway has around 120 vacancies in the Netherlands and believes a more austere scheme will not help. “Especially for job vacancies in data and technology, due to the lack of supply in the Netherlands, we are forced to look across borders. In our opinion, this slows down the innovative power of the Netherlands.”

People who fall under this scheme also work at Marktplaats and the company is disappointed by the cuts. “We fear that an open and innovative Netherlands will put itself at an international disadvantage as a result. The Netherlands, including Marktplaats, needs international talent, because this ensures the diversity necessary to compete as a Dutch company, so that companies remain attractive to international companies. Talent “

Universities and colleges also oppose budget cuts. Nearly 10,000 people work in universities alone and use this scheme. “Our country faces great social challenges and sufficient international talent is indispensable to achieve this,” the educational institutions said earlier in a joint statement.