LIV expires and LKV for older workers is phased out from 2025
The Senate has approved a bill in which the low-income benefit will expire as of 2025, and the wage cost benefit for older employees will be phased out from 2025.
Low-Income Benefit (LIV)
So, the low-income benefit, LIV, will disappear as of 2025. You are still entitled to the LIV for the year 2024 for employees earning around the minimum wage (averaging between €14.33 and €14.99 per hour). There are additional conditions for the LIV, including that the employee must have worked at least 1248 hours in 2024.
Tip! You can find all the conditions for the LIV here.
Note! The payment of the LIV 2023 will take place in 2024. The payment of the LIV 2024 will take place in 2025. You are no longer entitled to the LIV for the year 2025, but you can still receive the LIV 2024 payment.
Wage Cost Benefit (LKV)
The Senate also agreed that the wage cost benefit (LKV) for employers who have older workers on their payroll will be phased out gradually from 2025. Whether this phase-out occurs and how it happens depends on whether the employment relationship began before January 1, 2024, or not.
For employment relationships that began before January 1, 2024, the LKV for older workers of €3.05 per hour worked with a maximum of €6,000 per calendar year will remain in place until the end of the maximum three-year period. For employment relationships that began on or after January 1, 2024, the LKV will be reduced to €1.35 per hour worked as of January 1, 2025, and abolished as of January 1, 2026.
Tip! If the employment relationship starts this year or next year, check whether you might also be entitled to the LKV for disabled workers. This LKV will not be abolished and is also €3.05 per hour worked with a maximum of €6,000.
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