Employees with employment disabilities
Wage cost subsidy and municipal facilities
What is wage cost subsidy?
If you, as an employer, hire an employee with a work disability, you may be eligible for wage cost subsidy (LKS). As an employer, you then only pay for someone's 'wage value'. The wage value is the actual labour productivity (expressed as a percentage) of the work that an employee can perform.
How does it work?
Wage cost subsidy is intended for employers who hire someone who has a work limitation due to illness or disability. It concerns
employees who have lower productivity due to their disability.
- The employer applies for a wage cost subsidy for an employee who can earn less than the statutory minimum wage;
- A wage value expert determines the wage value of the employee at the workplace. This expert is appointed by the municipality;
- The wage cost subsidy compensates the difference between the wage value and the minimum wage. It is intended for employees who fall under the target group of the
- job agreement fall;
- You apply for the wage cost subsidy from the municipality where the employee is registered;
- If the collective labor agreement wage is higher than the minimum wage, the additional costs will be borne by the employer;
- Wage cost subsidy can never exceed 70% of the statutory minimum wage.
How do you apply for wage cost subsidy?
- Contact municipality: the municipality will inform you about the different types of wage cost subsidies and the application form;
- Providing data: the municipality needs certain data to determine, among other things, the duration and the amount of the subsidy. The employer provides the necessary information;
- Visit wage value expert: In consultation with the municipality, a wage value expert will visit to measure the wage value of the employee. The expert will look at work pace, quality, employability and necessary guidance;
- Discussion with municipality: the report with the wage value is sent to the municipality. Based on this report, you will receive a written decision on the subsidy application;
- Payment: in case of a positive decision, you will receive the subsidy monthly. If the employee has a contract with variable hours, you must submit the pay slips to the municipality monthly.
Other arrangements and facilities
If you receive wage cost subsidy for an employee, other schemes may also be interesting. If you want to know more about this, you can contact the UWV.
Job coaching
- A job coach guides people who need support in the workplace.
Read more about job coaching .
No-risk policy
- For many people with a disability, the no-risk policy automatically applies when they go to work. If an employee is (temporarily) incapacitated, the UWV pays the employer a Sickness Benefits Act benefit.
Read more about no-risk policy .
Low income benefit
- The low-income benefit (LIV) is an annual allowance for employers who employ workers with a low wage. Read more about low-income benefit .
Adjusting the workplace
- For an employee with an illness or disability, you can apply for compensation for any costs for adjustments to the workplace or aids. Read more about workplace adjustments .
Wage cost advantage
- The wage cost advantage (LKV) is an annual allowance for employers who hire one or more employees from target groups that often have difficulty finding work. Read more about wage cost advantage .