Executives' Pay (Standards) Act

Are you an organisation working in the public or semi-public sector? If so, you may be subject to the Executives' Pay (Standards) Act (Wet normering topinkomens, Wnt). If your executives receive higher salaries than permitted by law, you could be running a serious financial risk.

The Executives' Pay (Standards) Act applies to municipal authorities, water boards and certain foundations. This Act includes aspects from fields such as accountancy, labour law, payroll tax, social security, civil law and administrative law, making a multidisciplinary approach essential. The specialists at Mazars and Pellicaan Advocaten offer the full approach required.

Our Wnt services:

  • We conduct a legal assessment of whether your non-profit organisation comes under the Wnt.
  • If the Wnt applies, you will have to comply with the associated salary rules. You will need advice in the areas of labour law and payroll tax.
  • When applying the Wnt salary rules, you also have to consider transitional law. You will need legal advice for that as well.
  • An annual audit is carried out regarding the part of the financial report that relates to executive salaries. Our specialist accountants are very familiar with all the pitfalls of these audits.

State of affairs

At present, the Wnt applies only to executives. The new government has decided – for the time being – not to widen the scope of the Act to cover all senior staff. Members of the House of Representatives have submitted a legislative proposal which aims to widen the scope, but we do not yet know whether it will be adopted. Our Wnt specialists will keep a close eye on developments for you.

Want to know more?

If you want to find out more about the Executives' Pay (Standards) Act, you can contact Martin Aandewiel, tax adviser at Mazars (by email or by phone on +31 88 277 1396), Ellen Timmer, lawyer at Pellicaan (by emailor by phone on +31 88 627 2291) or Xander Alders, lawyer at Pellicaan Advocaten (by email or by phone on +31 88 627 2293). They will be happy to assist.

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