Of course, you want your children to become financially independent as soon as possible. However, if your children earn extra money, this may mean that child benefit or student finance has to be repaid.
Earning extra income and child benefit
Parents receive child benefit (and the child-related budget) for children up to the age of 18. Child benefit is paid per calendar quarter, with the final payment being made in the quarter in which the child turns 18. The parents’ income does not affect their entitlement to child benefit.
In 2017, a 16- or 17-year-old child is entitled to, per quarter, net maximum € 1.265 Additional earnings. If the child earns more than this amount, the parent will not receive child benefit (or the child-related budget) for that quarter. There is no limit on additional earnings for 15-year-olds.
During the summer holidays, the child may € 1.299 net earn some extra money. The summer holidays are the period between two school years.
In the quarter in which the child turns 18 – the final year in which child benefit is paid – the additional income limit still applies for the whole quarter.
As soon as a child exceeds the income limit, the parent must notify the Social Insurance Bank. This is also permitted even if it is expected that the supplementary income limit will be exceeded.
For the purposes of the additional income limit for child benefit, the child’s net income is relevant. This includes all net income relating to work carried out by the child as part of a part-time job or work experience placement, as well as income in the form of unemployment benefit or sickness benefit. Pocket money, interest and similar forms of income are not regarded as income for the purposes of child benefit. A refund of payroll tax is also included in the child’s net income.
With effect from 1 January 2020, 16- and 17-year-olds will be allowed to earn extra money without any restrictions.
Part-time work and student finance
Students receiving student finance may, on an annual basis in 2017, gross maximum € 14.215,75 earning extra income. This limit on extra income applies to:
- MBO students under the age of 18 with a student travel pass;
- MBO students aged 18 or over who receive student finance;
- Students on higher professional education (HBO) and university (WO) programmes receiving student finance under the old system (under the new system, students are allowed to earn an unlimited amount of money alongside their studies).
If these students earn too much, they must cancel their student finance themselves.