Employers facilitate tax-free student debt repayment more often

An increasing number of large employers are including provisions in their collective labour agreements allowing employees to repay their DUO student loans tax-free via their payslip. This can result in savings of thousands of euros.

For specific ‘tax-friendly purposes’, employers are permitted to transfer part of employees’ salaries tax-free. In addition to expenses for sports, courses, or new bicycles, the Tax and Customs Administration also supports payments for setting up a home office, union membership fees, or additional travel costs.

Expanded

Student loans were typically not included in this list, as the CNV Youth Union observed last year. However, this is now beginning to change, according to RTL Nieuws. At the urging of trade unions, organisations such as the national government, ProRail, ING, KPN, the UWV, and Schiphol have broadened the so-called gross/net scheme, with the approval of the Tax and Customs Administration, to cover repayments of DUO student loans.

The amount available for repaying student loans varies by employer. At KPN, it is 5,000 euros every two years, while at the national government, it amounts to 2,000 euros annually.

Calculation tool

RTL Nieuws offers a calculation tool to estimate the tax benefit. Those who repay their debt in this way over several years can recover roughly half of their student loan via the Tax and Customs Administration. However, this money can no longer be used for other tax-friendly purposes, such as purchasing a bicycle.