Volunteer allowances 2026: rules, amounts and how to arrange them
What is a volunteer allowance?
A volunteer allowance is an amount paid by a association, foundation or other not-for-profit organisation to someone who performs unpaid work. It is not a salary. A volunteer does not work under an employment contract. The allowance is intended as reimbursement of incurred costs or as a symbolic expression of appreciation.
Important: a volunteer allowance must never be so high that there is in reality paid employment. The Tax Authority applies clear limits for this.
The tax-free threshold in 2026
The Tax Authority sets annual maximum amounts for tax-free volunteer allowances. In 2026 the following thresholds apply:
- €210 per month (maximum)
- €2,100 per year (maximum)
These amounts are unchanged from 2025. If you stay within these limits, your organisation does not have to pay payroll tax and the volunteer does not have to declare the allowance in income tax. If you exceed the threshold, the excess is taxed as wages.
Note: check each year whether the amounts have been indexed. The current limits are always on the Tax Authority's website.
Expense reimbursement versus volunteer allowance
There is a difference between two types of allowances:
Expense reimbursement
An expense reimbursement covers demonstrable costs that the volunteer has incurred: kilometres, parking fees, phone costs, materials. This reimbursement is tax-free if the actual costs are substantiated with receipts or a mileage log. In 2026 you may reimburse up to €0.23 per kilometre tax-free (unchanged from 2025).
Volunteer allowance
A fixed allowance per hour, day or month, regardless of actual costs. This falls under the tax-free threshold as described above (€210/month, €2,100/year).
If you combine both, the expense reimbursements count towards the annual threshold for the volunteer allowance, unless the expenses are demonstrably actually incurred and documented.
Who may receive a volunteer allowance?
The scheme applies to volunteers at:
- Sports clubs and sports associations
- Community centres and village halls
- ANBI institutions (Public Benefit Organisation)
- Other not-for-profit organisations
Commercial organisations cannot use the volunteer allowance scheme. Also check whether the volunteer has another appointment elsewhere in the same organisation, otherwise the Tax Authority may classify the allowance as disguised wages.
Record-keeping: how to do it properly
For each volunteer record:
- Name, address and BSN (for administration purposes, not required to be disclosed)
- Which activities are carried out
- The amount of the allowance and the calculation basis (per hour, per month, per occasion)
- Whether it is an expense reimbursement or a volunteer allowance
For expense reimbursements, always have the volunteer submit receipts or a mileage log. Keep these for at least seven years, as with all other financial records.
Special situations
Volunteer receives welfare or unemployment benefits
Volunteers who receive benefits (unemployment benefits, welfare, disability) must report their volunteer work and any allowance to the benefits agency. The rules differ per benefit. Inform the volunteer about this so that they can make the correct report themselves.
Volunteer insurance
Many municipalities offer a free volunteer insurance policy for organisations in the municipality. Check with your municipality whether you can make use of it. This insurance covers liability and sometimes also accidents during volunteering.
Volunteer policy as the framework
Document the reimbursement scheme in a volunteer policy or internal regulations. This ensures everyone knows what to expect and helps prevent unclear or unequal treatment within the organisation. Treat all volunteers consistently; arbitrary exemptions lead to frustration.