Netherlands: compensation paid to companies hiring older employees to be scrapped

A bill to phase out so-called “labour costs compensation” (Loonkostenvoordelen, LKV) was approved by the Dutch Senate on 16 April. This financial benefit paid to employers when they hire employees aged 56 and over who receive social assistance will be abolished in 2026 “due to its limited effectiveness” in terms of employment, social affairs and employment minister Karien Van Gennip wrote in a letter to Parliament. “This does not change the fact that I will continue my efforts to further stimul