In the Netherlands, employers are allowed to provide a tax-free work-from-home (WFH) allowance to employees to help cover the costs of working remotely (such as utilities, coffee, etc.). Below is a guide to help you understand how this allowance works, how it's calculated, and when it applies.
Standard WFH Allowance Amount
The standard tax-free allowance is:
? €2.40 per WFH day (2024 rate)
This can be reimbursed per actual day worked from home or, in some cases, as a fixed monthly allowance.
Fixed Monthly WFH Allowance
If an employee works from home more than 128 days per year, the WFH allowance can be provided as a fixed monthly amount, based on the agreed number of WFH days per week.
Calculation of Monthly Fixed WFH Allowance
To calculate the monthly allowance:
(WFH days per week / Total workdays per week) * 214 (workable days) = Total eligible WFH days
(Total eligible WFH days * €2.40) / 12 = Monthly fixed WFH allowance
Example 1: Employee works from home 4 days per week (with fulltime employment)
4/5 * 214 = 171.2 days
(171.2 days * €2.40) / 12 = €34.24 per month
Example 2: Employee works from home full-time (5 days per week)
5/5 * 214 = 214 days
(214 days * €2.40) / 12 = €42.80 per month
Note: For part-time employees, the allowance should be prorated based on their contracted hours.
Important Rules and Exceptions
To comply with Dutch tax regulations, please note the following key points:
Not eligible in combination with company transport benefits:
Employees cannot receive the tax-free WFH allowance on days they use an employer-provided lease car or public transport subscription.
No double allowances for mixed workdays:
If an employee works partly from home and partly in the office on the same day, they must choose either the WFH allowance or the travel allowance — not both.
Suspension during long-term absences:
If an employee is on long-term sick leave, the WFH allowance must be paused.
Parental leave may impact allowance:
Taking parental leave could affect the allowance, depending on the type and duration of leave.