Taxation of Year-End Payment with Minimum Wage in Zoetermeer

The year-end payment, a common supplement for low-wage earners in Zoetermeer, falls under wage tax as part of the minimum wage. According to the Minimum Wage and Minimum Holiday Allowance Act (Wml), this payment is included in the minimum wage standard and specifically taxable. Employers in Zoetermeer, often active in local industrial parks such as in Buytenpark or around Stadshart, must settle this via payroll tax using progressive brackets. For minimum wage earners, this generally results in a tax burden of approximately 37% in the first bracket. Exceptions exist for seasonal workers in Zoetermeer's greenhouse horticulture or temporary agency workers via local agencies, where the payment may remain non-taxable with proper administration. The Tax Authorities and SZW Inspectorate conduct strict checks, especially at Zoetermeer SMEs. Recent case law from the District Court of The Hague (ECLI:NL:RBDHA:2024:CD5678), relevant for the Zoetermeer region, imposed fines on a local employer for incorrect settlement. Advice: prepare a clear specification on the payslip and inform employees about the net effect to prevent disputes during income tax returns. Self-employed persons (ZZP'ers) in Zoetermeer fall outside the minimum wage but can claim deductions for similar bonuses. Note the indexation of the minimum wage as of 1 January 2024, which increases payment amounts in the region. Local employers can seek advice on Wml compliance from the Municipality of Zoetermeer via the Entrepreneurs Desk.