Netherlands to ban housing deductions from migrant minimum wages

The Dutch government intends to prohibit employers from deducting housing costs from the minimum wage of labor migrants, effective July 1, 2028. Minister of Social Affairs and Employment Hans Vijlbrief announced the plan to the House of Representatives to prevent the practice from becoming a profit model for employers.

Currently, employers are permitted to withhold up to 25 percent of the gross minimum wage in exchange for housing, provided certain quality and certification standards are met. However, investigations suggest that employers frequently deduct the maximum amount even when the quality of the provided accommodation does not justify the cost.

The policy aims to reduce the dependency of labor migrants on their employers for housing and to ensure they pay a fair price for accommodation. Additionally, the abolition of these deductions is expected to simplify oversight by the Netherlands Labour Authority, making it easier to verify whether employers are paying the legal minimum wage.