Volunteer allowance

Legal limits

The Tax and Customs Administration sets annual maximums for volunteer allowances. The following amounts apply for 2024:

• Maximum of €220 per month
• Maximum of €2,200 per year

If you stay within these limits, the allowance is tax-exempt, and you do not need to remit payroll taxes. The volunteer does not have to declare it as income, either.

Two types of allowances

Expense reimbursement

You reimburse demonstrable costs incurred by the volunteer: travel expenses, materials, telephone costs. This is the purest form—you pay back what someone has spent. Be sure to ask for receipts or an expense claim form.

Fixed volunteer allowance

You provide a fixed amount per hour or per activity, without the volunteer needing to prove expenses. This is allowed, provided the amount stays within the annual maximums and is reasonable for the nature of the work.

What happens if you exceed the limit?

If you exceed the maximum allowance, the payment is considered wages for tax purposes. This means the organization must remit payroll taxes and the volunteer owes income tax. From an employment law perspective, the volunteer is then considered an employee—with all the associated consequences.

This is a situation most organizations want to avoid. So, keep a close record of what you pay out.

Volunteer allowance and benefits

Does the volunteer receive social security benefits? In that case, the reimbursement could affect your benefit. See the article 'Volunteering while receiving benefits' for further details.

Put it in writing

Agree on the reimbursement in writing beforehand, even if it is a small amount. This prevents misunderstandings and ensures clarity for both parties. A simple volunteer contract or agreement is sufficient for this purpose.