Fines and Sanctions for Exceeding the Welfare Asset Limit
Exceeding asset limit: benefit stopped, recovery and fines up to €5,280. Participation Act Article 54 strictly sanctions non-reporting.
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Arslan AdvocatenLegal Editorial
1 min leestijd
Exceeding the welfare asset limit leads to sanctions under the Participation Act. If your savings or assets are too high, the municipality stops the benefit from the eight-week period. Article 54 regulates recovery: excess welfare received must be repaid. Fines vary: 10-30% of the benefit for fraud, up to €5,280 maximum. In case of intent, a 4-week restoration period applies. Not reporting an inheritance? Automatic suspension and additional levy. Municipalities screen via banks and land registry. Appeal possible at the district court within 6 weeks. Practice: second car above value limit costs monthly benefit. Remedy: sell and provide proof. For chronic illness, leniency applies via hardship clause. Document everything: no fine in good faith. In 2024, tightened checks through digital linkages. Prevent sanctions by annual reporting. Legal advice via legal aid office free of charge. Sanctions hit harder for those on minimum income: request payment plan. Transparency always pays off.