This will take effect from 1 January 2022 and will work as compensation for the additional costs incurred by employees due to working from their homes. The allowance is based on a calculation by the National Institute for Family Finance Information (NIBUD) of the average extra costs per day worked from home, for things such as water, electricity, heating and refreshments (tea and coffee).
This new allowance comes in addition to the tax-free allowance for setting up a workspace at home that was introduced at the beginning of the pandemic. The tax-free travel to work allowance of up to €0.19 per kilometre will also continue for employees to use on days they go into the office.
It is the responsibility of the employee and employer to come to an agreement regarding the number of days per week that the employee will work from home, this will allow the employer to pay a fixed allowance. The amount of days does not need to be adjusted if work is occasionally done in the office on what should be a home working day, or vice versa.
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