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Government support for entrepreneurs

Labour costs compensation (LKV) for employing older or disabled persons

This information is provided by

Netherlands Enterprise Agency

If have a company in the Netherlands and you take one or more people on unemployment benefits over the age of 56 or with an occupational disability into employment, you may be eligible for Labour Costs Compensation (Loonkostenvoordeel, LKV)External link, (in Dutch). The LKV is an annual compensation for employers who take 1 or more older or occupationally disabled persons on unemployment benefits into employment. It has replaced the Mobility Bonus.

When do you qualify?

In order to receive Labour Costs Compensation (LKV), you need an LKV target group declaration (doelgroepverklaring) from your the prospective employee. The employee must belong to one of the following groups:
  • persons aged 56 or older
  • persons with an occupational disability entering your employment for the first time
  • persons eligible for protected employment placements as described in the so-called Jobs Agreement (Banenafspraak)External link, an agreement between government and employers to improve the participation of this group in the labour market (in Dutch)
  • persons with an occupational disability changing jobs within your organisation

How to apply?

Prospective employees are not obliged to request a LKV target group declaration. Your prospective employee can apply for an LKV target group declarationExternal link (in Dutch) from the Employment Insurance Agency (UWV) if he or she belongs to one of the target groups listed above. If necessary, the prospective employee can authorise someone else to request an LKV target group declarationExternal link (in Dutch).

This information is provided by

Netherlands Enterprise Agency