Early Retirement Scheme (RVU) levy to 64% by 2027

Publication Date: 18 September 2025

The 2026 Tax Plan elaborates on an increase of the RVU levy, which was already announced in May 2025. The rate will rise from 52% to 64% as early as 2027, and to 65% in 2028.

The RVU levy is a tax borne by the employer when age-related early retirement schemes are introduced for older employees. The RVU levy exists since 2006, initially at 26%, and is set to 52% since 2012. De employer carries the responsibility for this ‘penalty levy’, in addition to regular payroll taxes.

It is proposed that the RVU-levy will increase gradually:

What stands out is that the increase starts progressively and then levels off. The government intends to use the revenue from this measure to finance the budgetary effects of the extension of the RVU exemption threshold. Apparently the government expects these effects to occur mainly in the upcoming 14 months. Since there will be no transitional law and employers do not typically introduce termination schemes out of luxury, I would have found it more reasonable if the yearly increase would have been 4,33% and thus more gradual. Perhaps the House of Representatives will have something to say about this, although my expectations are low.

As mentioned before, there will be no transactional law. I can understand this, as it can be difficult to demonstrate and/ or verify a scheme existed as of 31 December 2025. Due to the absence of transitional law an employer with a existing scheme will be confronted with higher RVU costs starting from January 2026. In case an employer can invoke a unilateral amendment clause, there is the option to adjust the scheme in order to keep the RVU-levy somewhat under control.

Avoiding the RVU-levy

There are several legally facilitated options to avoid the RVU-levy. KWPS has therefore prepared a handy RVU-chechlist describing these legal options.

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