Tax benefit for employing low salaried persons previous message

Tax benefit for employing low salaried persons

The Dutch government wants to encourage labour force participation at the bottom of the labour market. To make it attractive to employ persons who earn between 100% and 120% of the minimum wage it is now proposed that employers receive an allowance for wage costs for such employees. This allowance will be up to EUR 2,000 per year per employee for employees earning between 100% and 110% of the minimum wage. For employees who earn between 110% and 120% of the minimum wage this benefit will be up to EUR 1,000 per year per employee. This allowance will result in a reduction of the labour costs of such employees.

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