Subsidies Participation Service Point

Financial arrangements

• Trial placement

  If an employee with an occupational disability is receiving state benefit, it is possible to arrange a trial placement. Under this arrangement, an employee works for the employer for a few months while retaining their benefit. This means that the employer does not have to pay the employee a salary. The trial placement period is a substitute for the probationary period at the start of an employment contract.

• Wage subsidy

  Wage subsidy reimburses employers for the difference between the actual wage paid and the minimum wage, up to 70% of the minimum wage. Employees with an occupational disability cannot always earn the minimum wage. For example, this applies in cases where the employee is less productive than an employee without an occupational disability. The wage subsidy allows the employee to receive the standard salary while compensating the employer for reduced productivity. Employers can submit an application for a wage subsidy to the municipality. The level of the subsidy is determined after a wage valuation assessment at the workplace. 

• Wage dispensation

  Wage dispensation is available to employers that employ young people who are entitled to incapacity benefit (Wajong) and whose illness or disability means that they are unable to handle a full workload. The employer pays the employee a lower wage which the UWV then supplements in the form of Wajong benefit. Depending on the level of income from work, a young person with a Wajong entitlement may also receive additional income support from the UWV. Wage dispensation can last anything from six months to five years. An extension is possible, but eventually the employer is expected to pay a wage-dispensation employee the same as other employees. 

• Wage compensation in the event of sick leave

  An employee with an illness or disability is entitled to a no-risk policy. This measure applies automatically, so the employee or employer does not need to apply for it separately. The no risk policy is applicable if the employee has started after 1 January 2015, and is registered in the Job Quota Act registry. For these employees, the no-risk policy lasts indefinitely. If an employee with a no-risk policy falls ill, the employer can receive wage compensation. To obtain this compensation, the employer applies for sickness benefit and continues to pay the employee’s salary while being compensated for the amount due in sickness benefit.

• Wage cost benefit

  Wage cost benefit (LKV) is an allowance for employers who hire someone who is receiving state benefit or re-employ someone from a specified target group, including those covered by the Jobs Quota Act. For the employees of this target group, the following rules apply: 

  • The employer receives € 1,01 per salaried hour 
  • The employer receives a maximum of € 2.000 per calendar year 
  • The wage cost benefit lasts a maximum of 3 years.