What is the Werkkostenregeling (WKR)

The Werkkostenregeling (WKR) enables employers in the Netherlands to provide employees with tax-free reimbursements and benefits through a single, streamlined system. Within the so-called discretionary scope (vrije ruimte), employers can use a portion of their total payroll to offer additional benefits that support employee wellbeing, mobility, and vitality, ranging from company bicycles and corporate fitness memberships to home office equipment.

This allows organisations to make optimal use of the available tax benefits without increasing payroll costs.