The Dutch bonus cap is often criticized for limiting variable pay for employees in the financial sector to no more than 20% of their fixed annual salary, with stakeholders claiming that it makes it hard to compete for talent against countries with less stringent rules.
Eelco Heinen is once again warning Dutch lawmakers that the limits the country has set on bonuses paid to bank employees are inadvertently pushing fintech companies out of the Netherlands.
Dutch Finance Minister Eelco Heinen warns about bonus cap
Finance Minister Eelco Heinen warned that the firms that remain in the Netherlands are struggling to hire IT staffers because they now have to compete with companies in other industries without similar restrictions, Heinen said.
“We already knew that the financial sector was being hamstrung by investments not being made, by companies not establishing themselves here because of the financial regulations,” he stated in a parliamentary debate Thursday. “But we are also seeing parties leaving. And I see that mainly in the fintech sector.”
The Netherlands’ 20% limit on variable pay has been tagged far more severe than any analogous restrictions imposed throughout the rest of the European Union. The country’s banks, including ABN Amro Bank NV and ING Groep NV, have long complained that the rules are a substantial hiring impediment, especially where IT recruitment is concerned.
Heinen didn’t name specific companies leaving or planning to leave, but that does not make the threat any less real.
While large, established fintechs are still able to offer staffers generous levels of base pay, earlier-stage companies often depend on hefty bonuses to attract talent.
Earlier this year, the Dutch Finance Ministry considered easing parts of the country’s limits on variable pay for bankers but ultimately made no change to restrictions.
Netherlands is not the only country in the EU facing talent drain
While the bonus cap in the Netherlands is considered more severe than any analogous restrictions imposed throughout the rest of the European Union, the country is not the only European one losing talent to other countries with better conditions.
The financial landscape in the UK has seen better days, and recent high-profile snubs confirm that more companies are considering the US as a more suitable destination, as it boasts more liquidity and encourages innovation.
This trend has greatly affected the IPO culture in London, with the biggest listing being MHA’s 98 million AIM debut. By July, a report revealed IPO activity had nearly flatlined and confirmed that since the beginning of the year, 48 UK-listed firms have been targeted in M&A deals, from Deliveroo to Spectris.
There have also been high-profile snubs from companies like Glencore-backed Cobalt Holdings, scrapping its plans, Shein choosing to pivot to Hong Kong and AstraZeneca considering a US move. These snubs have amplified the pain, and now reports claim more than $100 billion in London-listed firms have relocated to New York in recent years.
Their fixation on New York is not surprising, as the city boasts deep liquidity, and recent IPOs have been successful. One of the most notable ones this year has been the Klarna IPO, which was completed on September 10, 2025, on the New York Stock Exchange.
Klarna, the Swedish buy-now-pay-later fintech founded in 2005, reportedly chose the US because it presented a “tremendous opportunity” with its deeper liquidity, higher valuations, and investor appetite for high-growth fintech.
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