The Senate has adopted the amendment to the bonus cap on 19 May 2026. This update outlines the key changes introduced by the amendment, including its impact on identified staff and the broader remuneration framework within the financial sector.
We also highlight practical steps that financial institutions may wish to consider in light of these developments. If you have any questions or would like advice on the Dutch bonus cap reform, please do not hesitate to contact us.
Please note that the entry into force date is to be determined.
What the amendment changes:
- The Dutch 20% bonus cap is largely abolished and will apply only to Identified Staff, while the 20% level and broad sectoral scope remain.
- For the vast majority of employees in the financial sector the bonus cap and related requirements will no longer apply.
- Financial institutions gain greater flexibility to offer competitive remuneration and tailored exit arrangements
As a result, staff without a material risk impact will no longer be subject to:
- the 20% bonus cap;
- mandatory non‑financial performance weightings;
- variable remuneration disclosure requirements;
- regulatory restrictions on retention bonuses; or
- the five‑year retention period for financial instruments in fixed pay.
Identified Staff: who remains in scope?
Identified Staff are individuals whose professional activities materially affect the institution’s risk profile, including:
- members of the management body and executive management;
- staff with managerial responsibility over control functions or material business units; and
- certain high earners operating in roles with a significant risk impact.
- Assessment is made on a person‑by‑person basis, and activities cannot be split to fall partly outside the regime.
What should financial undertakings do now?
- Identify Identified Staff within the Dutch entity based on role, remuneration and risk impact.
- Design or reassess the Identified Staff framework in line with the institution’s risk profile and governance.
- Review and amend remuneration policies under the revised regime.
- Assess implications for variable pay and pay differentials, including alignment with other staff groups and equal pay considerations.
- Anticipate and manage employee expectations.
- Assess European Works Council (EWC) implications, where remuneration changes may trigger information or consultation obligations.
- Identify strategic reward opportunities within the revised regulatory framework.
How can we help:
- Identified Staff and MRT mapping, including documentation and substantiation.
- Tailored analysis for banks, insurers, intermediaries, payment institutions and other financial undertakings.
- Review, drafting and updating of remuneration and governance policies.
- Advise on European Works Council (EWC) and works council implications.
- Assessment of bonus structures, retention arrangements and exit packages.
- Support with internal and external communications, including alignment with international reward teams and headquarters.