The FNV union is positive about the cuts to immigration regulation that the House of Representatives voted on last night. The union has been opposing tax cuts for foreign workers for some time, on the grounds that it would lead to unfair competition between Dutch and overseas workers.
“The question is whether fewer foreigners will come to the Netherlands now. First of all, this means that employers can “sacrifice” some of the tax benefits for foreign employees in order to reduce wage costs,” says FNV director Petra Bolster.
Due to tax advantages, an employer pays a foreign worker less gross salary than a domestic employee for the same net salary. “In that sense, what we have with the gradual reduction of aid is fairer and better,” Bolster said. The association thinks it is good to make a temporary arrangement so that current expatriates “are not immediately affected by the cuts.”
Employers’ association VNO-NCW is concerned about this: “The program is important to keep the Netherlands attractive for scarce international talent. This is particularly important for high-tech companies and research institutions in the global “war for talent”. “And also because we have so little.” Foray into technical disciplines in our own country. Now many countries have successfully copied such programs from us and they are becoming more and more attractive. Economy Minister Adriaansens also expressed his concerns today.
Approximately half of IT company Datavezel’s employees use the system. “This will have an impact on our appeal,” says founder Kai Bakker. “The best talents expect the highest salaries, so we will have to pay more. “We have the opportunity for such investments, but some companies do not have the opportunity.”
cherry on the cake
Outside Booking.com in Amsterdam, we spoke to Rahul Chandnani, who has been working there since 2019. For him, the expat program was not a reason to come to the Netherlands. “I didn’t even know about it before I moved here. “It was just a bonus, the icing on the cake.”
The 30 percent rule will now be valid for another five years and will expire in a few months. “I will miss this when my period is over, it saves around €1,000 a month. But I’ll find my way, that’s life. “I think austerity will play a role in some people’s decision to come here, and for others it won’t.”
120 unfilled positions
Just Eat Takeaway has around 120 vacancies in the Netherlands and believes a tighter schedule would not help. “We are forced to look beyond borders due to the lack of opportunities in the Netherlands, especially when it comes to vacancies in the data and technology sector. “In our opinion, this situation slows down the innovative power of the Netherlands.”
People covered by the scheme also work at Marktplaats and the company is disappointed by the cuts. “We fear that this will put an open and innovative company in the Netherlands at an international disadvantage. The Netherlands, including Marktplaats, needs international talent because this provides the diversity needed to be competitive as a Dutch company and thus ensures that companies remain attractive to international companies.
Universities and colleges also oppose budget cuts. Approximately 10,000 people work in universities alone and benefit from this offer. Educational institutions had previously said in a joint statement: “Our country is facing major social challenges and sufficient international talent is essential for this.”
Source: NOS
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
