Wage cost benefits (LKV) in 2026: amounts and conditions
Written by Ilias Aarrass5 min read · Published on · Last reviewed on 
In short
Two wage cost benefits remain in 2026: 3.05 euros per paid hour (up to 6,000 euros a year, for 3 years) for an employee with a work limitation, and 1.01 euros per hour (up to 2,000 euros a year) for the job agreement target group. The LKV for older workers was abolished on 1 January 2026; a target group declaration must be requested within 3 months of starting.
- LKV work limitation: 3.05 euros per hour, up to 6,000 euros a year, for 3 years.
- LKV job agreement: 1.01 euros per hour, up to 2,000 euros a year, for new hires as long as employment lasts.
- The LKV for older workers is abolished for new employees.
- Payment follows the next year, within six weeks of the final calculation.
Wage cost benefits (LKV) are allowances for employers who hire people with a lower chance of finding work. You claim them through your payroll tax return and receive the money the following year. Quite a lot changed in 2026: the LKV for older workers was abolished and the LKV for the job agreement target group now runs for as long as employment lasts. If you are considering hiring staff, this explains which LKVs remain, what they are worth and which deadlines you must not miss.
Which LKVs exist in 2026?
The amount is a fixed sum per paid hour, with an annual maximum. It therefore only counts for hours for which you actually pay wages.
| Type | Per paid hour | Maximum per year | Duration |
|---|---|---|---|
| Employee with a work limitation | 3.05 euros | 6,000 euros | Up to 3 years |
| Redeploying an employee with a work limitation | 3.05 euros | 6,000 euros | Up to 1 year |
| Job agreement target group | 1.01 euros | 2,000 euros | As long as employment lasts (hired from 2026) |
| Older worker | Abolished | None | Only run-off for those hired before 2024 |
Target group declaration or target group register
For the LKV for employees with a work limitation, your employee requests a target group declaration from UWV. This must be done within 3 months of the start of employment. Once that deadline passes, the right is lost. So agree at the start who submits the request and check that it has been done.
For the job agreement target group you no longer need a target group declaration for new employees since 1 January 2026. You check whether someone is listed in UWV's target group register. As long as they are and your employee stays employed, you keep the right to the LKV. For those hired before 2026 the old scheme with a 3-year maximum still applies.
How to claim it and how it is paid
You indicate the LKV in the payroll tax return for the period in which the employee starts. After the year ends, a fixed cycle follows:
- UWV sends a provisional calculation before 15 March.
- You check it and correct any errors in your payroll tax returns before 1 May.
- The Tax Administration sends the final calculation before 1 August.
- The money reaches your account within six weeks after that.
Worked example: 24 hours a week
- Paid hours per year
- 24 x 52 = 1,248 hours
- LKV work limitation
- 1,248 x 3.05 = 3,806 euros
- LKV job agreement
- 1,248 x 1.01 = 1,260 euros
Result: At 24 hours a week you stay below the annual maximum. For an employee with a work limitation you receive about 3,806 euros a year, for three years.
Booking and combining
You only receive the LKV in the year after the wage year. At year end, record the amount as a receivable so the income falls in the right year; you book it as a reduction of wage costs. You can combine the LKV with other schemes, such as UWV's no-risk policy during illness and the practical learning grant for a bbl apprentice.
If you have outsourced your payroll administration, report for every new employee whether there is a target group declaration or whether they are in the target group register. The administrator must switch on the LKV in the payroll tax return; if that is forgotten and 1 May of the following year has passed, the benefit for that year is lost.
Frequently asked questions
What if the target group declaration was requested too late?
Then you have no right to the LKV for that employee. The 3-month deadline is strict.
Do I still get LKV for a 58-year-old employee hired in 2026?
No. The LKV for older workers was abolished for new employees as of 1 January 2026.
Is the LKV taxed?
It lowers your wage costs and therefore increases your profit. So you indirectly pay income tax or corporate income tax on it.
Sources
- Amount and duration of wage cost benefitsUWV · uwv.nl
- Wage cost benefit for older workersUWV · uwv.nl
- Wage cost benefitUWV · uwv.nl
Sources checked on
This article provides general information based on the rules known for 2026 and does not replace personal tax advice. For your specific situation, we're happy to take a look with you.
