A low hourly rate sounds favourable for you as a client. But did you know the rate itself is a Dutch DBA Act signal? A rate that is too low can indicate you actually have disguised employment.
In this article you will learn why the level of pay counts under the DBA Act, what the new legal presumption means, and why this is rarely a problem for IT hiring. You will also see what a rate further says about your working relationship.
This blog is for clients: IT managers and hiring managers who hire a freelancer and wonder whether the rate plays a role.
The level of pay is factor 7 of the Deliveroo ruling, one of the nine factors the Tax Authority uses to assess your working relationship. Want the full overview? Read our guide to the 9 assessment factors of the Dutch DBA Act.
Why does the level of the rate count under the Dutch DBA Act?
Because a rate reveals something about the nature of the relationship. An entrepreneur usually charges more than an employee, because they carry business risk and arrange their own insurance, pension and buffer. A low rate does not fit that and can indicate disguised employment.
The logic is simple. Someone working as a self-employed person must fund their own safety net and carries risk. That translates into a higher rate than an employee with the same tasks earns in employment. If the rate is at employee level, that entrepreneur compensation is missing, and it looks more like a salary.
What is the legal presumption at a low rate?
A legal presumption is coming: at a rate below around 38 euros per hour, a worker can claim they are actually an employee. The intended start date is 1 January 2027, and it still has to pass the Senate. It is meant to protect vulnerable workers at the lower end.
Important: this presumption reverses the burden of proof for low rates, but it is not a hard line saying everything below is wrong and everything above is fine. It is a tool for the worker to claim employment, not a free pass for the client above that threshold.
Legislation on this topic is shifting. For the current state, stick to the official sources: rijksoverheid.nl and belastingdienst.nl. The exact threshold and date may still change.
Does this play a role when hiring IT freelancers?
Rarely. IT freelancers usually charge 45 to 120 euros per hour, well above the level where the rate becomes a risk signal. For most IT hiring, factor 7 is therefore not a bottleneck. Your rates are naturally in the "entrepreneur zone".
Still, it is good to know why this factor exists. It shows the Tax Authority looks at the whole picture, including whether the pay fits genuine entrepreneurship. A meagre rate for specialist work would raise questions, not reassure.
Do watch the combination. A low rate plus other signals, like full-time at one client and full embedding, strengthens the picture of employment. The rate on its own is rarely the problem for IT, but in combination with other points it counts.
What else does a rate say about your working relationship?
Not only the level counts, but also how the rate comes about. If the freelancer negotiates their rate, they behave as an entrepreneur. If they are given a fixed amount with no room, that looks more like a salary. That touches on other factors, like the way of paying.
A healthy, market rate that has been negotiated is therefore a reassuring signal. It shows you are dealing with an independent entrepreneur and not disguised staff. So never pay artificially low to cut costs; that can backfire.
Frequently asked questions about rate and the Dutch DBA Act
Is there a minimum rate for freelancers?
A legal presumption is coming around 38 euros per hour, with intended start 1 January 2027, which still has to pass the Senate. It is not a hard statutory minimum rate, but a threshold below which a worker can more easily claim employment. For IT rates this rarely plays a role.
My IT professional charges 90 euros per hour. Do I run a risk on this point?
On the rate itself almost not; that is well in the entrepreneur zone. The rate is then more a reassuring signal. Do watch the other eight factors, because the overall picture is decisive, not the rate alone.
Can a high rate compensate for a low score on other points?
Not automatically. There is no ranking and no sum; all nine factors are weighed in combination. A high rate helps, but if the freelancer is otherwise fully embedded and works fixed hours, the picture can still tip toward employment.
May I deliberately agree a low rate to save costs?
It is allowed, but unwise. A low rate is a signal toward employment and can raise questions during an audit. It also drives away scarce specialists. A market rate is safer and yields better people.
Is the legal presumption already in force?
Not yet. It has been adopted by the House of Representatives, but still has to pass the Senate, with intended start 1 January 2027. The situation may change, so check the current state via rijksoverheid.nl or belastingdienst.nl before relying on it.
Conclusion: rarely a bottleneck for IT, but part of the whole
The level of the rate counts because an entrepreneur usually charges more than an employee. A low rate can indicate disguised employment. For IT hiring this rarely plays a role, because rates are well above the risk level.
For whom is this relevant? Mainly if you agree an unusually low rate or combine the rate with other employment signals. For whom not? For regular IT hiring at a market rate, this point is rarely a problem.
My advice: pay market rates, let the rate be negotiated, and see the rate as one of nine signals. A healthy rate reassures, an artificially low rate raises questions.
Unsure whether your assignment holds up on all points?
Want to look together at whether your working relationship holds up on the nine factors, and which construction fits? Plan a no-obligation call with me. We go through your situation, with no strings attached.
Note: regulations around the Dutch DBA Act may change. For current information, consult rijksoverheid.nl or belastingdienst.nl. This article is general information, not legal advice. For complex situations, I advise consulting an employment lawyer or tax advisor.
