{"id":254,"date":"2016-08-11T09:00:18","date_gmt":"2016-08-11T07:00:18","guid":{"rendered":"https:\/\/vwg.nl\/uncategorized\/loonkostenvoordelen\/"},"modified":"2026-03-03T10:32:34","modified_gmt":"2026-03-03T09:32:34","slug":"labour-cost-benefits","status":"publish","type":"post","link":"https:\/\/vwg.nl\/en\/loonkostenvoordelen\/","title":{"rendered":"Labour cost benefits"},"content":{"rendered":"

\"\"<\/p>\n

As this is a comprehensive memorandum, we recommend that you include it in pdf<\/a>-format to download. This is the updated version 2 of this fact sheet.<\/p>\n

 <\/p>\n

With effect from 1 January 2017<\/u> is the low-income benefit<\/strong> introduced.<\/em><\/p>\n

With effect from 1 January 2018<\/u> Premium discounts have been replaced by labour cost benefits<\/strong> (LKV<\/strong>).<\/em><\/p>\n

Low-income benefit<\/strong><\/h4>\n

The low-income benefit is paid to the employer and aims to boost labour participation at the bottom of the labour market.<\/p>\n

The maximum benefit is per employee based on a 38-hour working week:<\/p>\n

    \n
  • \u20ac 2.000<\/strong> For employees with an hourly wage between \u20ac10.05 and \u20ac11.07 (2018: \u20ac9.82 and \u20ac10.81), who have worked at least 1248 hours with the same employer in one year.<\/li>\n
  • \u20ac 1.000<\/strong> For employees with an hourly wage between \u20ac11.08 and \u20ac12.58 (2018: \u20ac10.82 and \u20ac12.29), who have worked at least 1248 hours with the same employer in one year.<\/li>\n<\/ul>\n

    For employees who worked part-time, the employer receives the low-income benefit in proportion to number of hours worked.<\/p>\n

    There is no age limit, but entitlement to the low-income benefit does stop when the state pension age is reached.<\/p>\n

    Labour cost benefits <\/strong><\/h4>\n

    Labour cost benefits are granted to the employer on request and amount to a maximum of \u20ac2,000 to \u20ac6,000 per year.<\/p>\n

    There will be 4 types<\/u> labour cost benefits:<\/p>\n

      \n
    • LKV older worker;<\/li>\n
    • LKV labour-impaired worker;<\/li>\n
    • LKV target group jobs agreement;<\/li>\n
    • LKV re-employment of labour-impaired worker.<\/li>\n<\/ul>\n

      A target group statement from the UWV is a requirement. This indicates that someone belongs to the target group of vulnerable people on the labour market and meets the conditions.<\/p>\n

      If the employee belongs to the target group, the employer can apply for relief from the start of employment for three years - or until the employment is terminated.<\/p>\n

      There is no entitlement to the labour cost benefit if the employee concerned has also worked for that employer in the previous six months. This so-called \u2018revolving door provision\u2019 should prevent employees from being dismissed and then re-employed purely because of the labour cost benefit.<\/p>\n

      Also for the labour cost benefits, the employee must not yet have reached the state pension age. In addition, the employee must not be employed under the Social Employment Act.<\/p>\n

      There are further specific conditions for each labour cost benefit.<\/p>\n

      <\/strong>LKV older worker<\/strong><\/h4>\n
        \n
      • The employee was entitled to WW, WAO, WIA, Wajong or WAZ benefits in the month prior to employment.<\/li>\n
      • The employee is 56 years or older at the start of employment.<\/li>\n<\/ul>\n

        <\/strong>LKV labour-impaired worker<\/strong><\/h4>\n
          \n
        • The employee has a work restriction.<\/li>\n
        • The employee belongs to the defined target group and was entitled to WIA benefits in the month prior to employment.<\/li>\n<\/ul>\n

          LKV target group employment agreement<\/strong><\/h4>\n
            \n
          • The employee has a work restriction.<\/li>\n
          • The employee belongs to the defined target group and was entitled to Wajong benefit in the month prior to employment.<\/li>\n<\/ul>\n

            <\/strong>LKV re-employment of disabled employee<\/strong><\/h4>\n
              \n
            • The employee who, after being entitled to and WIA benefit, resumes all or part of his own job or another job with his own employer.<\/li>\n<\/ul>\n

              Table overview of LIV and LKV levels<\/strong><\/h4>\n\n\n\n\n\n\n\n\n\n
              Target<\/strong><\/td>\nMax compensation<\/strong><\/td>\nMaximum duration<\/strong><\/td>\n<\/tr>\n
              LIV<\/strong> 100% - 110% statutory min. wage<\/td>\n\u20ac2,000 (\u20ac1.01 per hour)<\/td>\nUnlimited<\/td>\n<\/tr>\n
              LIV<\/strong> 100% - 120% legal min. wage<\/td>\n\u20ac1,000 (\u20ac0.51 per hour)<\/td>\nUnlimited<\/td>\n<\/tr>\n
              LKV<\/strong> elderly (56+)<\/td>\n\u20ac6,000 (\u20ac3.05 per hour)<\/td>\n3 years<\/td>\n<\/tr>\n
              LKV<\/strong> labour-restricted<\/td>\n\u20ac6,000 (\u20ac3.05 per hour)<\/td>\n3 years<\/td>\n<\/tr>\n
              LKV<\/strong> jobs agreement<\/td>\n\u20ac2,000 (\u20ac1.01 per hour)<\/td>\n3 years<\/td>\n<\/tr>\n
              LKV <\/strong>redeployment of the disabled<\/td>\n\u20ac6,000 (\u20ac3.05 per hour)<\/td>\n1 year<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

              Payment of the allowance <\/strong><\/h4>\n

              The premium discounts were processed in the wage declaration. The LKVs and the LIV are paid afterwards by the Tax Administration.<\/p>\n

              The Tax and Customs Administration issues a decision before 1 August of the year following the year of pay, following a request for an LKV or LIV. Within 6 weeks of the date of the decision, the Tax and Customs Administration pays out.<\/p>\n

              Transitional law <\/strong><\/h4>\n

              For ongoing premium discounts (older and disabled employees) on 31 December 2017, these have been converted into an LKV for the remaining period. The period during which the employer applied a premium discount is deducted from the maximum duration of the LKV.<\/p>\n

              Concurrence of LIV and LKVs<\/strong><\/h4>\n

              If there is an entitlement to an LIV and an LKV for the same employee, the employer will receive the allowance that entitles him\/her to the highest amount. So there is no entitlement to an allowance for both an LIV and an LKV.<\/p>\n

              This concurrence provision only applies from 1 January 2018. So from 1 January 2017, it may well be possible to receive a premium discount and an LIV allowance for the same employee.<\/p>\n

              Incidentally, for a concurrence of two LKVs, the employer also receives the allowance that entitles him to the highest amount.<\/p>\n

               <\/p>\n

              The purpose of this note is to outline a scheme. For the sake of readability, matters have therefore been simplified. VWG is therefore not liable for the consequences of actions taken or not taken as a result of this memorandum.<\/em><\/p>","protected":false},"excerpt":{"rendered":"

              Aangezien sprake is van een uitgebreide notitie adviseren wij u deze in pdf-format te downloaden. Dit betreft de vernieuwde versie 2 van deze factsheet.   Met ingang van 1 januari 2017 is het lage-inkomensvoordeel ingevoerd. Met ingang van 1 januari 2018 zijn de premiekortingen vervangen door loonkostenvoordelen (LKV). Lage-inkomensvoordeel Het lage-inkomensvoordeel wordt uitbetaald aan de […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-254","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"acf":[],"_links":{"self":[{"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/posts\/254","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/comments?post=254"}],"version-history":[{"count":1,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/posts\/254\/revisions"}],"predecessor-version":[{"id":2267,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/posts\/254\/revisions\/2267"}],"wp:attachment":[{"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/media?parent=254"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/categories?post=254"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/tags?post=254"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}