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If you run a company in the Netherlands and you employ an occupationally disabled or elderly person or continue to employ them, you will receive a temporary discount on the employee insurance contributions (WIA/WAO and WW).
Changes in labour and social security law
As of 1 January 2020 changes in labour and social security law will take place. This means you need to prepare. Read our Balance Employment Market Act checklist to make sure your company is ready on time.
If you employ someone who belongs to the special target group defined in the Participation Act, and this person would normally not be able to earn the minimum wage independently, you may combine the contribution discount with the subsidy on wages from that Act. Also, employers can use the so-called Low Income Benefit (lage-inkomensvoordeel, LIV). This makes it possible to employ someone who earns up to 125% of the statutory minimum wage, without increasing your labour costs.
Use the free (Dutch-language) Subsidy Calculator (Employee Insurance Agency (UWV) and the Dutch Tax and Customs Administration) to calculate the level of subsidy you will receive when recruiting certain employees.
When do you qualify?
- You employ a benefit recipient aged 56 or older or an occupationally disabled person (Labour Costs Compensation (Loonkostenvoordeel, LKV)).
- You hire a new employee that belongs to one of the groups mentioned in the so-called Jobs Agreement (Banenafspraak), an agreement between government and employers to improve their participation in the labour market.
- Your employee has a statement (doelgroepverklaring), issued by UWV, that indicates they were receiving benefit the day prior to being employed. The employee must contact UWV (0900 - 9294) to apply for this statement.
How to apply?
You apply the contribution discount yourself when completing your payroll tax return.