Tax-free working-from-home allowance: the rules for 2025

For several years now, employers have been able to compensate employees tax-free for the extra costs of working from home. In 2025, new amounts and conditions apply. Below, you can read what to look out for as an employer or employee.

What is the tax-free working-from-home allowance?

The working-from-home allowance is a targeted exemption within the work-related costs scheme (WKR). It allows an employer to pay an allowance for costs incurred because an employee works (partly) from home. Think of extra energy use, heating, coffee/tea, water, toilet paper, etc.

Amount of the allowance in 2025

• In 2025, the tax-free working-from-home allowance can be up to €2.40 per day worked from home.

• This means that, as an employer, you don’t have to pay payroll taxes or social security contributions on this amount, as long as you meet the conditions.

• If you pay more than €2.40 per day, the excess is taxed.

Fixed allowance: when is it allowed?

You can opt for a fixed allowance instead of claiming per day, provided certain conditions are met. This makes the administration simpler.

A common threshold is the 128-day rule (also used for travel expenses). Employees who regularly travel to the office can then be “fixed” at a fixed travel allowance, and their days working from home at a fixed working-from-home allowance.

For full-time work, you can assume 214 working days a year (a common standard in many schemes).

Please note: to qualify for a fixed allowance, the employee may not also receive a tax-free travel allowance for the same day.