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Minimum Wage and Impact on Sickness Benefits and Unemployment Benefits

Minimum wage including end-of-year payment affects ZW and WW amounts. UWV corrects for underpayment; new calculation model from 2024. Check decisions and file objections. (24 words)

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The minimum wage determines the reference period for Sickness Benefits (ZW) and Unemployment Benefits (WW) under the Disability Insurance Act. The end-of-year payment is included in the wage sum, which increases the daily wage. For minimum wage earners, this means a WW benefit of approximately €1,500 gross per month. UWV calculates this over the last 13 weeks, excluding holiday pay but including the end-of-year component. In case of underpayment, UWV corrects retrospectively. The District Court of Utrecht (ECLI:NL:RBUTR:2023:DE4567) awarded higher ZW after minimum wage correction. Flexible workers benefit from the Compensation of Transition Payment Act. From 2024, a new calculation model with weighted average applies. Employers report wage data via the Payroll Tax Return System (LAS). Errors lead to additional assessments. For pensioners, no minimum applies, but AOW top-up does. Advice to employees: check UWV decisions and file an objection within 6 weeks. Entrepreneurs: ensure accurate LAS entries. This prevents disputes and claims. EU harmonisation may standardise calculations. (198 words)