Cabinet scraps all cuts to your unemployment and disability benefits
The cabinet has dropped all planned cuts to social security, including the cuts to unemployment benefit (WW) and disability benefit (WIA), political sources told NOS on Tuesday. The minority cabinet of Prime Minister Rob Jetten made the change after talks with opposition parties, to win majorities for its 2027 budgets. Finance Minister Eelco Heinen is still due to send a letter with the details to the House of Representatives.
The cabinet had planned, among other things, to shorten unemployment benefit to a maximum of one year. After the talks, Pro and Volt said they will back the budget of the Ministry of Social Affairs. The unions FNV, CNV and VCP said they are suspending all planned actions and strikes and want to resume talks with the cabinet on social security.
The money has to come from elsewhere. From 2028 box 3 moves to a tax on actual gains from savings and investments, and the tax-free return would fall from 1,800 to 1,000 euros per person. According to reports, about 850,000 more people could then pay box 3 tax. Loans that owners take from their own private limited company would be capped at 100,000 euros instead of 500,000 euros. Opposition parties are still divided: JA21 calls part of the plan unacceptable and the SGP is not yet convinced.
What it means for you: if you receive WW or WIA, or may need it in future, the planned shorter duration and cuts are off the table for now. Nothing changes in your current payments. The House debates the cabinet's financial plans on Wednesday and Thursday, and the budget still needs a majority. If you have savings or investments, check how the new box 3 rules could affect you from 2028.