News item | 14-03-2025 | 15:45
From 2027, employers who pay a disability benefit can no longer apply to employees to this to employees. This change is the result of a Supreme Court ruling. On November 15, 2024, they concluded that the application of the employed person’s tax credit is contrary to the prohibition of discrimination in human rights treaties, since people who immediately receive their benefits from the UWV are not eligible for this. The adjustment has financial consequences for around 11,000 people on benefits, the vast majority of which are (partial) disability benefits.
The largest group of benefit recipients who, in addition to their benefits, also (partially) works, does not receive an employed person’s tax credit on their However, if the same benefit is paid by the employer, they are currently still receiving an employed person’s tax credit. This is the case for around 11,000 workers on benefits. The Supreme Court states that this leads to an unequal treatment of beneficiaries. For this reason, the government has decided that, just like UWV, an employer may no longer apply an employed person to benefits.
State Secretary Van Oostenbruggen (Taxation, Tax Authorities and Customs): “The Cabinet shares the opinion of the Supreme Court that it is undesirable to treat the same group of people. That is why we are changing the rules concerning the employed person’s tax credit. This is a decision that we have not taken lightly, because this can have serious consequences for a large group of beneficiaries. That is why the rules will only change in 2027, so that this group of people can prepare as well as possible for the changes in the coming two years. In addition, it is my wish to tackle the employed person’s tax credit fundamentally. This takes time and needs sufficient political support. “
Minister Van Hijum (Social Affairs and Employment): “The Cabinet is following the Supreme Court’s opinion to prevent discrimination and to treat equal cases. At the same time, we realize that the statement can have major financial consequences for people who now have an extra advantage. That may feel unjust. That is why we continue to talk to the group who is and I endorse the call from the State Secretary to look carefully with the cabinet in the coming period at the difference in income that has arisen between workers and benefit recipients. ”
In their letter of Parliament, Minister Van Hijum and State Secretary Van Oostenbruggen emphasize that for many people it is a major adjustment. The adjustment therefore starts from 2027, until that time the ministries will talk to people who work in addition to their benefits, to inform them as well as possible about the consequences of the adjusted scheme. Minister Van Hijum and State Secretary Van Oostenbruggen also want to talk to the House of Representatives about the employed person’s tax credit and the growing inequality between workers and beneficiaries.