No more labour costs compensation (LKV) for older persons

What has changed?

Are you an employer and do you employ or hire an employee aged 56 or older? From 1 January 2026, you can no longer apply for labour costs compensation (loonkostenvoordeel, LKV) for this employee if they started working for you on or after 1 January 2024. For employees who started before 1 January 2024, the LKV continues to apply as normal.

The LKV is an annual compensation for employers who employ persons who have difficulty finding work, for example due to a disability or their age. 

From 1 January 2025, the amounts of the LKV for employees aged 56 or older and who were hired on or after 1 January 2024, have been reduced (in Dutch) from €3.05 per hour (with a maximum of €6,000 per year) to €1.35 per hour (with a maximum of €2,600 per year). This applies to hours paid, such as hours worked, taken leave, and continued payment during illness.

For whom?

• Employers who employ 56-plus employees who meet the conditions for LKV (in Dutch).

When?

The change in law entered into effect on 1 January 2026.