On 13 January 2026, the Dutch House of Representatives received a new amendment proposing to narrow the application of the Dutch 20% variable remuneration cap.
Under the current regime, the Dutch rules are stricter than EU requirements in several respects including:
- Scope: the rules apply to all financial firms,
- Application: the rules cover all employees, and
- Level: the cap is set at 20%, whereas the cap in the EU is generally set at 100% for identified staff.
This broad application has long been criticized for affecting competitiveness and the Dutch business climate, and for making it more difficult to attract and retain specialised staff, such as IT personnel.
What the amendment proposes
The amendment seeks to bring Dutch practice more in line with EU standards by narrowing the application of the bonus cap to “identified staff”. This concerns staff that materially influence the risk profile of the financial undertaking. The amendment does not change the cap level (20%) or the sectoral reach across all financial undertakings.
As a result, under the proposal, employees whose work does not materially affect the risk profile will no longer be subject to the following requirements:
- the 20% bonus cap,
- weighting non-financial metrics at least 50% in variable pay,
- annual disclosure of amounts of variable remuneration in the board report,
- specific conditions for retention bonuses, and
- the five-year retention period for financial instruments in fixed pay.
Who counts as “identified staff”
The amendment aligns with Article 92(3) of the Capital Requirements Directive IV. Staff that materially influence the risk profile of the financial undertaking (identified staff) includes:
- all members of the management body and the executive management;
- personnel with managerial responsibility over control functions or material business units; and
- personnel who, in the previous financial year, received a signification remuneration, provided that the:
- remuneration of the individual equals at least €500,000 and is at least equal to the average remuneration awarded to members of the management body and executive management, and
- individual carries out business activities in a material business unit with a role that has a significant impact on the risk profile of that unit.
What’s next?
The amendment will first be debated in the Dutch House of Representatives. During this process, additional amendments may be proposed.