Minimum rate for self-employed persons: many questions remain

The cabinet has been looking for a long time for a way to protect the growing group of sham self-employed persons. Thus, there will be a minimum rate for all self-employed persons in the Netherlands; self-employed persons must not earn less than EUR 16 per hour. However, the Minister of Social Affairs and Employment presented a proposal for exemption rules for self-employed persons with a low rate. In it, the Minister stipulated, among other things, a minimum hourly rate. The minimum hourly rate must apply from the beginning of 2021, sources tell the NOS, the Netherlands Broadcasting Corporation.
This minimum rate will probably not apply to all freelancers, but only to corporate clients who hire self-employed persons. They must pay their self-employed persons at least 16 euros per hour. This concerns approximately 600,000 self-employed people.

The rule is part of the replacement of the DBA Act and intended to protect employees against sham self-employment. This means that the measure does not seem to apply to self-employed persons who work for private individuals, for example, cleaners, painters and hairdressers. If you, as a private person, get your hair cut for ten euros, it is not logical at all to speak of an employment relationship. Many self-employed persons are not hired by the hour. Think not only of shopkeepers who sell products, but also of journalists with a word rate, consultants with a price per consultation or deliverymen with a price per package.

Minister Koolmees went on to compare the costs of a self-employed person with those of someone who works for 125% of the minimum wage. According to the cabinet, if a self-employed person works for EUR 16 per hour, he has the same earnings after deducting all the extra costs incurred by self-employed persons as an employee.
There are also plans for an opt-out for self-employed persons who do short-term assignments (less than one year with the same client) at an hourly rate of €75 or more. Clients need not worry about having to withhold payroll tax if they hire people at a rate higher than that.

For the area range the minimum rate and the opt-out scheme, clients can apply for a client declaration via a web module. Soon the plans will be discussed in the General Consultation in the Lower House.

In short:

  • Self-employed persons receive minimum wage of 16 euros
  • Top of the labour market gets easier security in advance
  • Middle group will work with automatic test to determine employment relationship

Many questions remain. For more information on this subject read the full article on ZiPconomy.

Source: ZiPconomy, 2019.

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