Navigating the Dutch employment rules can be tricky, especially when hiring internationals. One common source of confusion is the difference between ADV and ATV, and whether this affects the 30% facility.

First things first: The name ADV stands for arbeidsduurverkorting (in Dutch) and focuses on duration (duur), while ATV stands for arbeidstijdverkorting (in Dutch) and focuses on time (tijd).

So what is the main difference?

Both ADV and ATV mean "reduction of working hours" and are often part of the Collective Labour Agreement (CLA) or employment contract. The difference is really in how the "extra accumulated time" is used. In the case of ADV, the employee is the one in charge, while with ATV, the employer is the one who decides.
For example, if someone works 40 hours per week, but the CLA states that contracts have a duration of 38 hours per week, this means that each week the employee works 2 hours extra. Over time, those hours obviously add up. Then, an employee might then take some ADV day once per month or half a day once every two weeks, which first happens as a request from the employee and is later approved by the employer. With ATV, on the other hand, is the employer who determines when the extra time-off is taken, often happening in “quiet periods” such as Christmas/New Year, and usually in accordance with the whole team or company calendar.

And, does or does not ADV or ATV count in 30% facility?

The answer is no. Both of these compensations are not considered direct payment for labour. Therefore, and considering that the salary that counts towards the expat scheme must be based on the usual agreed working hours per week, this does not count as part of the salary criterion. Which is to say, because ADV and ATV are time-off arrangements and not direct monetary payment, they do not count towards the taxable salary that is required for the 30% facility.

Long story short, ADV is when the employee can decide when the accumulated time is used, and ATV is the employer who determines which days the employee will take off. However, bear in mind that this is not legally required, but usually included in a CLA or contract. And when applying for the 30% facility, remember that ADV and ATV will not count towards the salary requirement.