The Dutch Minister of Finance Jeroen Dijsselbloem on Tuesday submitted a bill to the Dutch parliament for a bonus maximum of 20 percent of fixed salary in the entire financial sector by January 2015.
According to Dijsselbloem, the Netherlands will get the strictest anti-bonus policy in Europe, of the bill will be accepted.
The legislation does also apply to employees of subsidiaries of Dutch banks abroad, but exceptions are possible because of international regulations.
With the new law, financial institutions are required to adjust their bonuses for all employees. In addition, the bonuses of employees can also easily be recovered if an employee has violated professional standards.
High rewards and bonuses are recognized as one of the causes of the financial crisis. Dijsselbloem has opted for an approach which is more stringent than the new European framework for remuneration policies for banks and investment firms.
"The financial sector has over the years at various times been leaning on the support of taxpayers and consumers," said Dijsselbloem. "I want to further tighten the rules in the Netherlands."