Wage expense allowance (LKV), low-income allowance (LIV) and youth low-income allowance (jeugd-LIV)

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

  • wage expense allowance (LKV)
  • low-income allowance (LIV)
  • youth low-income allowance (jeugd-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 2023 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 € 12.04 and an average maximum hourly wage of € 15.06.
  • 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.

Youth low-income allowance (Jeugd-LIV)

The youth-LIV offers compensation for the stepped increases to the legal youth minimum wage as of 1 July 2017 and 1 July 2019 for employees who are 18, 19, and 20 years old.

In 2023 you are entitled to the youth-LIV for every employee who fulfils these 3 conditions:

  • The employee is insured under one or more of the employed persons’ insurance schemes.
  • The employee has an average hourly wage that falls within the range of the youth-LIV applicable for that age. The ranges will be set by the middle of 2023.
  • The employee was 18, 19 or 20 years old on 31 December 2022.

For more information on the youth-LIV please call the Tax Information Line.

Javascript is disabled in this web browser. You must activate Javascript in order to view this website.