Wage subsidy

What is wage subsidy?

The wage subsidy is a subsidy for employees  that are younger than 50 years old and were unemployed or incapacitated for work for a long period, prior to the employment. This subsidy is 50% of the minimum wage that applies for the employer (tekst Salupa wanneer sprake van arbeidsrelatie). You are entitled to this subsidy for 1 year. the subsidy is lowered to ratio and based on the worked hours if the employee works part time.

When can I be considered for this subsidy?

Whether or not you can be considered for the subsidy depends on the employee’s history:

-If the employee receives a WGA-, WAO,- WAZ- or benefit;

-If the employee receive a full WW-benefit for more than 1 year;

- If the employee is younger than 50 years;

-If the employee has a lot of trouble finding employment

-If the employee has not worked on trial for you in the past 6 months;

-If the employee has a so-called indication wage subsidy (Dutch: LKS). This shows that the employee is part of the target group.

Source: UWV

Pay attention! An employee that received a WW-benefit because he became unemployed prior to employment in education or a government institution, does not meet the abovementioned requirements . The (ex)employer of the possible employee is responsible for the reintegration course.

In this case the following requirements apply:

-The employer offers the employee an annual contract;

-The employer has the intention to extend that contract for another 6 months;

-The subsidy is requested within 3 months after the employee has entered into employment.

How do I apply for this subsidy?

To request the wage subsidy, the form ‘Aanvraag loonkostensubsidie (Request wage subsidy) can be downloaded from the UWV website. Again, this must be done within 3 months after the employee has entered into employment. For more information or any other questions, please do not hesitate to contact us at info [at] lupacompany.com.