If you employ employees between the ages of 18 and 21 or are considering hiring staff in this age category, you may be entitled to youth LIV: a compensation for wage costs.
What is youth LIV?
Because the minimum youth wage was increased in 2017, the government came up with a scheme as of 1 January 2018 to (partly) compensate for the increased costs for employers. The youth LIV then came into force as part of the Wage Domain Allowances Act (in Dutch) and includes an annual allowance for employers with employees aged 18, 19 and 20.
Are you eligible for youth LIV?
Do you have or hire employees in this age category, and do you want to know whether you are entitled to the allowance for (future) staff? Then you must check whether the employees in question meet the conditions:
- The employee receives wages from current employment: He or she is employed by you at the time you make the application;
- The employee is insured for at least one employee insurance policy (WAO, WW, WIA, Sickness Insurance Act);
- The employee turned 18, 19 or 20 in the previous year;
- The employee's hourly wage is part of the statutory minimum youth wage. For 2022, the following lower and upper limits apply:
20 years - € 8.67 - € 10.73
19 years - € 6.50 - € 9.65
18 years - € 5.42 - € 7.24
Height youth LIV
The amount of the wage cost benefit depends on the age of the employee and is calculated on the hours worked: the hours stated in the employee's contract and the paid additional work/overtime. The hours worked must match the application in the payroll tax return. For example, the average hourly wage can be calculated conclusively by the UWV. For the different ages (starting from the previous year) the following allowance applies:
18 years: € 0.07 per hour with a maximum of € 135.20 per employee per year
19 years: € 0.08 per hour with a maximum of € 166.40 per employee per year
20 years: € 0.30 per hour with a maximum of € 613.30 per employee per year
Suzan was a 19-year-old student in 2021 and had a part-time job in a call center. She was paid € 7 per hour and worked an average of 12 hours a week. Her employer received € 49.92 in youth LIV for this in 2022. Sander was 20 years old in 2021 and worked an average of 8 hours every week in the same call center. He earned € 9.25 an hour. Although he worked less, his employer receives more youth LIV about his work: € 124.80 was paid on Sander's salary.
Claiming youth LIV?
You do not have to apply for Youth LIV yourself. If you are entitled to the compensation, this will automatically be charged as a result of your wage declaration. Make sure that you fill in the number of hours paid here correctly, so that you avoid wrongly missing out on the youth LIV. If you are entitled to the compensation, you will receive the allowance in the year following the year of the wage declaration.
Find out more
The UWV informs employers (in Dutch) about the Wage Domain Allowances Act (Wtl). If you hire staff with a distance to the labor market, you may be entitled to more benefits. With the Wage Domain Allowances Act you can qualify for Labour cost advantage and the low income benefit (if at least 1248 hours are included in the wage declaration per calendar year). If you need any help navigating through the Dutch legal and fiscal benefits you might be entitled to concerning your staff, let us know! We are happy to be of service.