Are you looking for ways to make the Work Cost Scheme (WKR) optimal in 2026? In this blog, we dive into the Work Cost Scheme, an important fiscal regulation as a central part of HR remuneration policy. Additionally, we will discuss the Prinsjesdag-current events and show how you can optimize the WKR as an employer. By setting this up well, with knowledge about targeted exemptions, zero valuations, and WKR tips and tricks, we help you to make smart use of your available WKR space.

In this article, we discuss:

• What is the Work Cost Scheme (WKR)?

• What is the free space in the WKR?

• What is the free space in 2026?

• What targeted exemptions are there?

• Employers and insights into the WKR free space

• How can you optimally utilize the free space?

• How can I as an employer optimally use the WKR?

• What are the conditions for salary exchange?

• What are smart tips to optimally use the WKR?

• WKR & employment conditions Masterclass Alleo

What is the Work Cost Scheme (WKR)?

Let's start with the basics: the Work Cost Scheme is a fiscal arrangement that allows employers to provide tax-free reimbursements and provisions to their employees. Instead of numerous separate regulations, there has been a rule replacing this for several years now. A certain percentage of your total wage sum is available as "free space." Within this free space, you can give your team tax-free perks. The higher the wage sum, the larger the free space.

Important components of the WKR

The Work Cost Scheme (WKR) consists of several important components that enable employers to offer reimbursements and provisions to employees without tax liability.

What are zero valuations?

Certain provisions that apply to provisions at the workplace itself are fiscally valued at €0, meaning they do not count towards the free space and are therefore exempt from tax. Examples include:

• Use of business assets at the workplace (such as computers or phones).

• Meals at the workplace (e.g. fruit, a cup of coffee).

• Parking spaces on the employer’s premises.

What are targeted exemptions?

Targeted exemptions are intended for reimbursements and provisions with a business purpose outside the workplace. Since these costs contribute to work and are clearly business-related, you can reimburse them outside the free space. Examples include:

• Travel expense reimbursement (up to €0.23 per kilometer for commuting).

• Study costs and training expenses.

• Safety equipment such as helmets or protective clothing.

  
  

As long as you meet the conditions set by the Tax Authorities, you do not pay wage tax on these items and no 80% final tax. This makes targeted exemptions particularly attractive for employers.

What is the free space?

Reimbursements that do not fall under a targeted exemption or zero valuation are charged to the free space if you want to give them tax-free to your employees. The free space is the part of the wage sum that you as an employer may use tax-free each year for reimbursements, provisions, and allocations to employees. You do not have to pay wage tax on this budget.

What is the free space WKR in 2026?

The free space WKR for 2025 is somewhat more favorable than expected. Initially, it seemed that the percentages would remain the same as in 2024, but it has now been announced that the free space will increase from 1.92% to 2% on the first €400,000 of the fiscal wage sum.

For 2025, the following percentages apply:

• Up to a fiscal wage sum of €400,000: 2%

• Above the fiscal wage sum of €400,000: 1.18%

  
  

This means that depending on the total fiscal wage sum, you can spend a certain amount tax-free on rewards and reimbursements. It is now easier to plan ahead as the percentage is clear, provided your workforce and salaries remain approximately the same.

Note: when you exceed the free space, you pay a final tax of 80% on the amount you exceed.

This change offers more room to provide tax-free reimbursements, especially for companies with a wage sum around or below €400,000.

In the WKR Guide 2026, you will find an extensive discussion on how to smartly use the WKR in the new year.

How can you optimally use the free space?

By already calculating how much space you have, you can avoid having to pay taxes on reimbursements that could otherwise have been tax-free at the end of the year.

How can I as an employer optimally use the WKR?

More and more employers want to distribute the available space more fairly across their diverse teams. One way is through a budget contribution for wellness, for example, between 15 and 50 euros per month, which the employee can use for sports or other purposes.

Another way is to give employees access to the free space, where the employee exchanges fiscally friendly but pays for the employment conditions themselves. The value is exchanged within the WKR, so neither the employee nor the employer pays tax on this amount. This can result in a saving of 40%. For the employer, this can even lead to a saving of 18% on social charges, as this is exchanged within the WKR.

• Create more purchasing power

• Saving on social charges

  
  

More and more employers want to distribute the available space more fairly across their diverse teams. One way is through a budget contribution for wellness, for example, between 15 and 50 euros per month, which the employee can use for sports or other purposes.

Another way is to give employees access to the free space, where the employee exchanges fiscally friendly but pays for the employment conditions themselves. The value is exchanged within the WKR, so neither the employee nor the employer pays tax on this amount. This can result in a saving of 40%. For the employer, this can even lead to a saving of 18% on social charges, as this is exchanged within the WKR.

• Create more purchasing power

• Saving on social charges