If you’ve encountered the 30% ruling, you likely know about its two tiers:

• The Standard 30% Ruling, requiring a higher minimum taxable salary (€46,660/year in 2025).
• The Young Master’s 30% Ruling, tailored for those under 30 with a master’s degree, with a reduced minimum salary requirement (€35,468/year in 2025).

But what happens when you turn 30 while benefiting from the Young Master’s scheme?

The transition after 30

The answer is straightforward but can catch many off guard: once you turn 30, the general salary threshold applies. Importantly, this doesn’t kick in on your birthday—it starts on the 1st of the following month.

For example, if your birthday is May 5, your salary only needs to meet the Young Master’s requirement until May. From June onwards, you must meet the standard 30% ruling threshold.

Bonuses, holiday pay, and similar extras are also divided proportionally between these two periods and included in the annual income check by the tax office.

Scenario 1: Smooth sailing

Let’s say you turn 30 in May 2025. Your employer is well-prepared and ensures your salary aligns with the updated requirements from June onwards. If you remain with the same employer and on the same contract, they are not immediately obligated to raise your salary to the HSM 30+ level. However, they must ensure your taxable base salary meets the 30% ruling thresholds to retain the benefit.

For 2025:

• The HSM 30+ threshold is €59,772/year (including 8% holiday pay).
• To retain the 30% ruling, your salary needs to be between €46,660 and €59,772/year for full tax benefits.

Employers can optimize the taxable portion of your salary to meet these requirements. For instance, with a gross salary of €50,000/year, only €3,228 might remain tax-free to ensure compliance.

Scenario 2: Could be better

You turned 30 six months ago, but neither you nor your employer realized that your salary no longer met the updated requirements.

If your employer is cooperative, there are ways to address this:

1. Retroactive Salary Adjustment: Increase your salary retroactively to align with the ruling’s requirements.
2. Lump-Sum Payment: Issue a one-time payment to meet the annual taxable income threshold.
3. Raise Going Forward: Ensure your total income for the year complies with the ruling thresholds.

While these measures can help preserve the ruling, they must be applied within the same calendar year to avoid complications.

Scenario 3: The worst case

You moved to the Netherlands at 29, switched jobs at 31, and bought a house with a mortgage. Now 32, you assume all is well—your employer raised your salary to the HSM 30+ level, and you’re enjoying the ruling benefits.

But suddenly, your new employer’s ruling application is denied. Why? The tax office determined your salary for the year after turning 30 didn’t meet the minimum requirements.

Here’s what this means:

• You’ve unknowingly used the ruling benefits without eligibility.
• You now owe back taxes (approximately 38% of the tax-free portion of your salary).

Is there a way out? Yes, theoretically. You can approach your previous employer, explain the situation, and request that they refile their corporate tax returns for the affected years. By reallocating the taxable and tax-free portions of your salary, they can help reduce the back taxes owed. However, this process can be time-consuming and is not guaranteed to succeed.

How to play it safe

1. Plan Ahead: Proactively discuss salary adjustments with your employer before turning 30. Ensure HR, payroll, and management are all aware of the upcoming changes.
2. Include a Safeguard Addendum: Employers are encouraged to add a clause guaranteeing compliance with the 30% ruling’s salary requirements. You can find a bilingual template for this safeguard on the Dutch government publication site.
3. Be Prepared to Move On: If your employer isn’t willing to adjust your salary, start exploring other opportunities. Before turning 30, your lower threshold could be an incentive for prospective employers.

Final thoughts

Navigating the 30% ruling after turning 30 can be complex, but with the right planning and communication, you can avoid potential pitfalls. Understanding the updated salary requirements and planning ahead will ensure you continue to benefit from this tax advantage.