next »

[donstefano]

Actually the employer is not obliged to agree with the 30% rule application. Generally, they will, especially when in the middle of wage negotiations. They normally agree, because it is a cheaper way for them to pay you more. In my case, we had agreed on the wage already, and now asking for 30% sounds to them as if I'm asking for a salary increase already. Turns out our HR people did not know too much about this 30% rule. The positive thing about this is that I was able to negotiate a much higher point on the scale, without the 30% rule. But that's just my situation. Generally, the employer won't refuse. The only cases where I heard about refusals (by the employer, not the tax office-  they are almost always positive if you have work experience), is where the employer wanted to avoid large wage discrepancies between individual staff members.

Anyway, if you decide to go or the 30% rule: you are geneally better off with it. But I advise to have a tax consultant look at it. With the 30% rule, you probabaly end up in a lower tax scale, which has implications for intrest deductions should you decide to buy a house here (still, the advantage you get from the 30% rule is bigger).

Anyway, when you negotiate, first talk and agree about the normal gross salary, and only then talk about the 30% rule. Some employers use the 30% rule as an excuse to give you a lower gross salary. Their reasoning is that because of the 30% rule you take home the same pay as your colleagues after all.

[monsterx]

Hi,

I received the 30% ruling in January 2008.  It increased my monthly take-home by about 500€ a month.  Since I applied before the 4 month period was up, it will be retroactive, so I will get the 500€ back in tax refund for time worked in 2007. 

Another new hire also applied and got it, but because HR didn't tell her about it, she only applied once I told her, and it was after the 4 months.  So it was not retroactive.  But she still gets the extra money, from the point the ruling was made forward.  She is pretty pissed off because their neglect has cost her upwards of 3000€.

The 30% ruling means your gross pay is regarded as 70% of what it really is for tax reasons. Sp 30% of it is tax free, and you probably end up in a lower marginal tax bracket. This means lower taxes and pension contributions, but also lower income for purposes of pension or unemployment insurance calculations, etc.  It is definitely worth it, but not as much worth it as the 500€ would lead you to believe.

Some companies take the extra 30% instead of giving it to their employees - this is legal.  But universities don't do this, as far as I know.

If you didn't apply when you first got here, get that form right away and send it in, because you are losing 100s of euros per month.   And if you are just starting, then you need to be sure that the application gets done quickly (4 months here is the blink of an eye for administrators).  Ask HR, but if they don't help, take it up with Belastingsdienst; you can get the form from them and give it to HR to sign. 

It is not 100% guaranteed to get a 30% ruling, but from the criteria, academics should always qualify.  Your supervisor will have to write a letter, so the contents of the letter might make a difference.  It probably pays to look up the criteria from the Belastingsdienst, to make sure the letter's contents show how your talents match the criteria. 

HR and hiring committees generally don't know about the 30% rule.  So if you are in negotiations, don't bring it up, because it could mean a lower offer.  Instead, take it up with HR and your supervisor once you get here.

Other things it is good to be aware of at the negotiations stage include 1) children's school fees and potential employer contributions to them (since these are tax free) and 2) Dutch course fees, and potential employer contributions to them (tax free if the employer does them, but not tax deductible if you do).

When you move here, if you have kids, you will also want to apply for child allowances, which are another thing no one will tell you about, unless you ask.

   

[totocat]

Thanks for sharing the experience. It's really helpful.

[asteria]

Hi. Sorry to intrude. Do those of you working in Holland speak Dutch? If so, how did you learn the language? I have been there several times and picked up very little.

[monsterx]

I do not speak Dutch, although I am taking courses. It is an extremely simple and easy language to learn, very similar to German but without the complicated grammer.   Pronounciation can be a little difficult, but not overly.  There are lots of German and English cognates.

As with any language, the main problem is finding time to study, and courage to take what you've learned in class and use it in real life. The most effective way to learn is to take classes, and combine that with as much real-life practice as possible by contriving situations where you must use it.  It takes alot of work, even an easy language like Dutch means a couple years hard work to speak well. 

Do not expect to just "pick it up".  You only learn languages by osmosis once you already speak them fairly well and start using them day-to-day without making an extra effort.


 

[normative_]

Chime.

The main problem with learning in NL is that the overall quality of English is so good you hardly ever need it. So you have to motivate yourself outside of class. And if you ask your colleagues to start sending (at least some) emails in Dutch, then you will have a regular source of practical stuff to learn.

 

[asteria]

Thanks for the input. That's pretty much what I have noticed: reading is not so hard, but it's difficult to get the pronunciation right, and people in NL know English too well. (I didn't say, BTW, that I expected to breeze in and pick it up.) I have worked pretty hard at this, but not living in NL, my resources are limited.

So, you're saying that you did not know the language when you moved there, but are learning it as you live and work in the country? So, it was not a prerequisite for working in NL? You teach your courses in English...?

[normative_]

The advert will tell you about the language requirements. Frequently, you are expected to learn the language within two years. At what level is another question (I can't answer). There are intensive courses that the unis often offer.

[asteria]

Great. Thanks Normative!

[puffin]

*bump*

Have any of you got tips or recommendations about insurance in the Netherlands? I'm talking primarily about house and third-party liability insurance, but while I'm at it, car insurance would interest me as well in the near future.  Individual companies, things to look out for, all welcome.

At the moment I rent in a multi-unit building. The house insurance should cover theft and damage in case of fire, etc.

[spim78]

Hello Guys,
I am checking the 30% rule and found this calculator

http://www.e-prepay.nl/e-prepay2008/

But when you select 30% rules "JA" it comes with a crazy calculation, as the government actually gives more money to you.

It this correct?

Thanks

[donstefano]

No it's not. The money comes from your employer.
So e.g. 3900 gross pay. Under the 30% rule, the employer can pay 30% of this (1300) tax free. The rest, 2900 is taxed normally. That website applies the calculation differently and ads the 30% to the gross already agreed.
Mind you that the employer is not obliged to give you 30%, he can also decide to make it a lower amount.

Have a look at expatica.com, the dutch forum for a detailed discussion of the 30% rule