Wage expense allowance (LKV) and low-income allowance (LIV)

There are 3 kinds of compensation for employed persons' insurance:

• wage expense allowance (LKV)
• low-income allowance (LIV)

Wage expense allowance

There are 4 kinds of wage expense allowance:

• LKV for older employees
• LKV for disabled employees
• LKV for the target groups with a job arrangement (banenafspraak) or interrupted education (scholingsbelemmerden)
• LKV for a new placement of a disabled employee

Do you have employees who are 56 years old or older who have been on benefits? Do you have employees who are disabled, partially disabled, or who were formerly unemployed? Or employees who were registered in the target group register for job arrangements or interrupted education? Or have you provided a new placement for a disabled employee? In such cases you may be entitled to one of the wage expense allowances. The required conditions for eligibility vary for each wage expense allowance.

For more information on the wage expense allowance please call the Tax Information Line.

Low-income allowance (LIV)

Do you have employees who are low waged? Then you may be entitled to compensation for the wage costs, in Dutch an LIV.

In 2024 you are entitled to an LIV for every employee who fulfils these 4 conditions:

• The employee is insured under one or more of the employed persons’ insurance schemes.
• The employee receives an average minimum hourly wage of €14.33 and an average maximum hourly wage of €14.91.
• The employee works for at least 1,248 paid hours per calendar year.
• The employee has not yet reached the age for old-age pensions in the Netherlands (AOW).

For more information on the low-income allowance (LIV) please call the Tax Information Line.