The new calculation rules in effect as of July 1, 2021 have been published. These rules cover the consequences of changes to the statutory minimum wages for employees who receive benefits as well as set the statutory basis for a guaranteed minimum income. One of these consequences is that maximum daily wages have once again increased as of July 1.
The new calculation rules set new maximum daily wages as well as the new upper and lower limits with respect to hourly wages in order to be eligible for ‘jeugd-LIV’, the Low-Income Allowance for Young Employees. These limits have changed as of July 1, 2021 due to the new maximum daily wages which have increase slightly by 0.96%. This also means that the daily wages of employees who receive an unemployment benefit or benefit through the ‘Wet op de arbeidsongeschiktheidsverzekering’ (Disability Insurance Act), ‘Wet werk en inkomen naar arbeidsvermogen’ (Work and Income According to Work Capacity Act) and/or ‘Ziektewet’ (Sickness Benefits Act) have also changed as of July 1. As of this date, the maximum daily wage for these employees is € 225.57.
Maximum amount for contributions remains the same
When calculating the due contributions for national insurance in the payroll tax return, a maximum amount applies to the wages of an employee over which these contributions are due. A new maximum is set again each calendar year. This year, however, this maximum amount over which national insurance contributions are due as well as the maximum amount over which healthcare insurance contributions are due will not change, as the government has already set both to € 58.311 for the entirety of 2021.