Good news for employers and students; the annual contingent for student work increases from 2025 from 475 to 650 hours. This means that students can work longer with reduced social contributions, which is beneficial for both them and employers.
Students pay a solidarity contribution of 2.71% on their wages within this hour contingent, instead of 13.07%. The employer pays a solidarity contribution of 5.43% on top of the gross salary. To benefit from this advantageous rate, there must be a written employment contract and the employer must submit a Dimona declaration in time.
Employers are advised to reserve student hours quickly, as late declarations lead to the loss of the advantageous rate. The 650 hours can be divided among multiple employers and must be submitted quarterly in Dimona. If the number of hours is exceeded, regular social security contributions are due and students over 18 years old lose the right to the growth package if they work more than 80 hours per month.
There is a maximum amount for the net subsistence means that students can earn, so that they remain dependent on their parents. This maximum amount depends on their family situation.
Do you have any questions about this? Contact our B-HRMS team, they will be happy to help you.
This article was written by Louise Voeten, specialized in HR payroll.