From 1 July 2017, young people from the age of 22 are entitled to the full statutory minimum wage for adults. Now they have this right only from 23 years. A young person aged 22 now earns at least € 1,318.85 gross per month for full-time employment. From 1 July 2017 this will be at least € 1,551.60, but probably a little more. Every year, the minimum (youth) wages are adjusted upwards as of 1 July.
You will also pay more wages for your young employees aged 18 to 21, because the statutory minimum youth wage is increased. How much exactly, that is not yet known. The minimum wage for these young people has been between € 706.00 (18-year old) and € 1,124.90 (21-year old) per month since 1 January 2017. The statutory minimum wage for young people up to the age of 18 will only change with effect from 1 July 2017 with the usual increase.
New rules for ‘exchange’ of (over) hours
With effect from 1 January 2018 you will no longer be able to exchange all or part of the overtime of employees who earn the statutory minimum wage for other employment conditions (the so-called cafeteria scheme). You can then agree in advance with employees in writing that the overtime paid at the statutory minimum wage will be exchanged for compensation in time. From January 1, 2019, this exchange is further limited and this is only allowed if this is in a collective labor agreement.
From 2018 you can receive an annual allowance for the wage costs of the young people who earn (no more than, but not less than) the statutory minimum wage.
This allowance is the minimum youth wage benefit.
What is the procedure?
You will receive a provisional statement from the UWV on 15 March 2019, based on the wage declarations for 2018, including the corrections submitted no later than January 2019, which state what you are compensated for. You can have any errors corrected up to and including 1 May 2019 by submitting correction messages. The Tax Authorities will then send you a decision no later than 1 August 2019. This is done on the basis of the wage declarations that are included in the policy administration of the UWV on 1 May 2019. The minimum youth wage benefit will be paid no later than 12 September 2019.
What do you have to do for this?
Not so much. You do not have to apply for the allowance because it is determined on the basis of the wage declarations submitted. That is why you must ensure that your administration is in order and that you provide the correct details to your payroll administrator on time. If you are unsure whether your administration satisfies, let us check it and correct it if necessary. Moreover, the indication of incorrect data in the wage declarations is subject to a fine of € 1,319 per absence per employee. All the more reason to ensure that your administration contains correct and complete information.
Do you have any questions or are you unsure whether your administration is sufficiently in order to use the compensation and to avoid penalties? Please contact us. We are happy to help you to ensure that you do not miss the compensation and that you avoid penalties.