Netherlands launches compensation scheme for underpaid WIA disability benefits

The Dutch Ministry of Social Affairs and Employment, led by Minister Hans Vijlbrief, has approved a compensation scheme for recipients of the Work and Income Act (WIA) disability benefit whose entitlements were calculated too low due to administrative errors. The scheme takes effect on 1 September, allowing the UWV to begin disbursing one‑off payments this autumn to correct past underpayments.

Eligibility covers three groups: (1) claimants whose daily wage (dagloon) was set too low between 1 January 2020 and 31 December 2024 and who consequently received a reduced benefit; (2) those whose daily wage was not indexed between 1 July 2006 and 31 December 2022; and (3) certain WIA benefits that started on or after 1 July 2015 and involve “loonloze tijdvakken” under rulings of the Central Appeals Tribunal. The correction restores the correct monthly amount and provides a single lump‑sum payment for the missed income. Overpayments are not reclaimed, and the compensation does not count as taxable income, so it does not affect rent, health or other income‑dependent allowances.