The Balkenende Norm (WNT Cap)

Key Takeaways

The 30% ruling benefit is capped at the WNT norm (Wet Normering Topinkomens), also known as the Balkenende norm.
In 2026, the WNT cap is €262,000 in gross salary.
The maximum annual tax-free allowance is 30% × €262,000 = €78,600 during Phase 1.
Salary above the cap is fully taxed — no 30% benefit applies to the excess.
This cap only affects high earners. If your salary is below €262,000, the cap has no impact on you.

What Is the Balkenende Norm?

The Balkenende norm — named after former Prime Minister Jan Peter Balkenende — is the informal name for the salary cap established by the Wet Normering Topinkomens (WNT). This law caps the remuneration of executives in the public and semi-public sector.

Since 2019, the same cap has been applied to limit the 30% ruling benefit. The reasoning: the government decided that the 30% ruling should not provide unlimited tax-free income to the highest earners.

WNT

How the Cap Works

The cap limits the salary base on which the 30% (or 20% / 10%) tax-free allowance is calculated.

If Your Salary Is Below the Cap

The cap has no effect on you. Your full salary is used to calculate the tax-free allowance.

Example: Salary = €80,000 → 30% tax-free = €24,000 ✓ (under the cap)

If Your Salary Is Above the Cap

Only the portion up to the cap qualifies for the tax-free allowance. The remainder is fully taxed.

Example: Salary = €300,000

Component	Amount
Salary up to WNT cap	€262,000
Salary above cap	€38,000
Tax-free allowance (30% of €262,000)	€78,600
Fully taxed portion	€38,000 + (€262,000 − €78,600) = €221,400

Without the cap, the tax-free allowance would be €90,000 (30% of €300,000). The cap reduces it by €11,400.

The WNT Cap Over the Years

The cap is adjusted annually. Here are recent values:

Year	WNT Cap	Max 30% Allowance
2023	€223,000	€66,900
2024	€233,000	€69,900
2025	€246,000	€73,800
2026	€262,000	€78,600

Good to know

The WNT cap has been increasing each year, reflecting general wage growth in the public sector. However, the government can choose to freeze or adjust it. Always check the current year's cap.

Impact With the 30/20/10 Schedule

The WNT cap interacts with each phase of the reduction schedule differently:

Maximum Tax-Free Allowance Per Phase (2026)

Phase	Percentage	Maximum Annual Tax-Free (at €262,000 cap)
Phase 1 (30%)	30%	€78,600
Phase 2 (20%)	20%	€52,400
Phase 3 (10%)	10%	€26,200

For someone earning exactly at the cap, the reduction from Phase 1 to Phase 3 means a decrease of €52,400 in annual tax-free income — resulting in approximately €19,000–€26,000 more in annual tax.

Who Is Actually Affected?

The cap only matters if your gross salary exceeds the WNT norm. In practice, this affects:

Senior executives at multinationals
Managing directors of Dutch companies
Highly paid specialists in tech, finance, or consulting
Partners at law firms or consultancies

For the vast majority of 30% ruling holders, the cap is irrelevant. The average salary for 30% ruling applicants is well below the WNT norm.

How Many People Are Affected?

According to estimates, fewer than 5% of 30% ruling holders earn above the WNT cap. However, these high earners received a disproportionate share of the total tax benefit before the cap was introduced, which is why the government implemented it.

Practical Calculation

Scenario: You earn €320,000 per year and are in Phase 1 (30%).

Step	Without Cap	With Cap
Gross salary	€320,000	€320,000
Salary base for 30%	€320,000	€262,000
Tax-free allowance	€96,000	€78,600
Taxable salary	€224,000	€241,400
Extra tax due to cap	—	~€8,600

The cap costs this person approximately €8,600 per year in additional tax (at the 49.50% rate on the €17,400 difference in taxable income).

Tip

If you earn above the WNT cap, the cap reduces the 30% ruling benefit but does not eliminate it. The ruling still provides a significant tax saving on the first €262,000 of salary. At 30%, that is still €78,600 tax-free — saving approximately €28,000–€39,000 in tax per year.

The Cap and Employer Costs

The WNT cap applies to the employee's tax benefit. It does not directly affect employer costs. However, some employment contracts are structured around the net salary — in these cases, the cap may require the employer to increase the gross salary to maintain the agreed net.

If your contract guarantees a specific net salary, discuss with your employer how the cap (and the 30/20/10 reduction) affects the gross salary calculation.

Interaction With Other Components

Bonus and Variable Pay

The cap applies to your total employment salary, including bonuses, stock options (when exercised), and other variable compensation. If your base salary is below the cap but a bonus pushes your total above it, the cap limits the 30% benefit on the excess.

Holiday Allowance

The 8% holiday allowance (vakantiegeld) is part of your employment salary. It counts toward the WNT cap threshold.

Pension Contributions

Employer pension contributions are generally not included in the WNT cap calculation for the 30% ruling. The cap applies to gross salary, not total compensation.

Common Mistakes

Not realizing the cap applies to total salary including bonuses — A base salary of €240,000 plus a €40,000 bonus puts you above the cap.
Confusing the WNT cap with the minimum salary threshold — The minimum salary (€46,107) and the WNT cap (€262,000) are completely different thresholds serving different purposes.
Assuming the cap eliminates the 30% benefit entirely — The cap only affects the portion above the cap. You still receive the full benefit on salary up to the cap.
Not adjusting financial planning when the cap changes — The WNT cap changes annually. If your salary is near the cap, your tax-free amount may change from year to year.