Taxation of Year-End Bonuses for Minimum Wage Earners in Westland

In Westland, renowned for its greenhouse complexes and horticultural sector, the year-end bonus for minimum wage workers serves as a crucial allowance for seasonal workers and greenhouse horticulture employees. This bonus is subject to wage tax as part of the minimum wage, in accordance with the *Minimum Wage and Minimum Holiday Allowance Act (Wml)*. Employers in Westland, often family-run businesses in greenhouse horticulture, must account for this through progressive wage tax brackets. For incomes around the minimum wage, the tax burden can rise to approximately 37% in the first bracket. Specifically for seasonal greenhouse workers, such as those employed by growers in Monster or Naaldwijk, an exception may apply where the bonus can be tax-exempt if correctly administratively deducted. The Westland Tax Authority and the Inspectorate SZW (Ministry of Social Affairs and Employment) conduct intensive inspections, particularly during peak seasons. Recent case law from the District Court of The Hague (ECLI:NL:RBDHA:2024:CD5678) imposed fines on a Westland horticultural business for incorrect accounting of year-end bonuses for Polish temporary workers. Advice for Westland employers: ensure clear specifications on payslips, inform employees about net effects, and align this with collective labour agreement (CLA) provisions in the horticultural sector. This prevents disputes during income tax returns. Self-employed growers in Westland are not subject to minimum wage obligations but may claim deductions for bonuses through the *Small Businesses Scheme (KOR)* or investment deductions. Note the minimum wage indexation as of 1 January 2024, which increases payout amounts in the region due to rising labour costs in greenhouse horticulture.