The Dutch Banking Bonus Cap: what you need to know about the proposal to lift the 20% bonus cap
The Netherlands introduced a uniquely strict 20% bonus cap in 2015 under the Wbfo, going far beyond EU rules and applying it to all financial‑sector employees (with few exceptions), not just Identified Staff, i.e., employees with material impact on the institution’s risk profile. Two government reviews in 2018 and 2025 found no clear evidence that the 20% cap reduced risk more effectively than EU‑standard caps, while highlighting negative effects on competitiveness, pay structures, and talent attraction.