No more labour costs compensation (LKV) for older persons

What changes?

Are you an employer and do you employ or hire an employee aged 56 or older? From 1 January 2026, you can no longer apply for labour costs compensation (loonkostenvoordeel, LKV) for this employee if they started working for you on or after 1 January 2024. For employees who started before 1 January 2024, the LKV continues to apply as normal.

The LKV is an annual compensation for employers who employ persons who have difficulty finding work, for example due to a disability or their age.

Please note: From 1 January 2025, the amounts of the LKV for employees aged 56 or older will be reduced (in Dutch) from €3.05 per hour (with a maximum of €6,000 per year) to €1.35 per hour (with a maximum of €2,600 per year). This applies to hours paid, such as hours worked, taken leave, and continued payment during illness.

For whom?

• Employers who employ 56-plus employees who meet the conditions for LKV (in Dutch).

When?

The change in law is expected to enter into effect on 1 January 2026.

Please note: The effective date of this measure is not yet final. Entry into force is subject to its passing through the Upper and Lower Houses (Eerste en Tweede Kamer) of parliament or proclamation of the Order in Council (Algemene Maatregel van Bestuur, AMvB) or ministerial decree and publication in the Staatsblad or Staatscourant (Government Gazette, in Dutch).