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Employers will soon be banned from deducting rent from migrant workers' minimum wage

Employers will soon be banned from deducting rent from migrant workers' minimum wage

The Dutch government plans to ban employers from deducting rent from the minimum wage of migrant workers to prevent exploitation. The measure, set to take effect by July 2028, will be implemented alongside new rental protection legislation to ensure fair housing costs and better oversight.

The Dutch Ministry of Social Affairs and Employment has announced a plan to prohibit employers from deducting housing rent from the minimum wage of migrant workers. Minister Vijlbrief stated that the current practice, which allows deductions of up to 25 percent of the gross minimum wage, has become a predatory business model for some employers. By banning this, the government aims to reduce the dependency of migrant workers on their bosses for housing and ensure they pay fair prices for their accommodations.

This change will take effect alongside the upcoming Proper Rent Act, which is designed to provide better rental protection for migrants. The government intends to implement these measures by July 1, 2028, ensuring that workers remain protected until the new legislation is fully active. Furthermore, officials noted that removing these deductions will simplify the oversight process for the Netherlands Labour Authority, making it easier to monitor if companies are paying the full mandatory minimum wage to their employees.

Based on reporting by nu. Translated and condensed by LocalHeadlines.

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