If you run a small business, “policy changes” don’t arrive as headlines. They arrive as a payroll run that’s a little higher than expected, a quote that suddenly feels too tight, or a contract you hesitate to sign because the numbers no longer leave breathing room. The end of a wage-cost advantage for older employees is exactly that kind of change: not dramatic, but real, because it touches monthly cash flow, not long-term theory.
Until now, the Netherlands had the loonkostenvoordeel (LKV): a wage-cost benefit that could reduce your labour costs when you hired certain groups, including older employees. As of 1 January 2026, the LKV for older workers (56+) has ended for employment relationships that started on or after 1 January 2024. There’s one important exception that will still matter in practice: if the employment started before 1 January 2024, the LKV can continue for up to three years. In all other cases, the advantage is simply gone.
In plain terms, this is not about paperwork being moved around in The Hague. It’s about the price tag of experience. If you were counting on that reduction to make an extra day of coverage affordable, or to justify a slightly higher wage for a candidate who can steady the ship, you may now be looking at a hiring decision with less margin. For micro-entrepreneurs, margin is not an abstract word, it’s the difference between paying suppliers on time and sliding into late reminders, between calm admin and constant “just one more correction” in the books.
The uncomfortable detail is that this change is happening partly because the scheme wasn’t used much and proved limited in effect. That’s not a moral judgement on small employers; it’s a reflection of reality. Many businesses don’t build subsidies into their hiring model because the rules are complex, the timelines are strict, and the benefit often arrives after you’ve already taken the risk. But if you did use it, the risk now shows up in the simplest place: your wage costs per hour, and therefore your pricing.
So what do you do, calmly, without turning your business into a compliance project? First, make sure you know which employees still fall under the “started before 1 January 2024” window, because that remaining three-year period is worth protecting with clean records and correct payroll processing. Second, when you hire or extend a contract, stop treating last year’s labour cost as your benchmark, run the numbers as they will be in 2026 and beyond. And third, if you work with long quotes or fixed-price agreements, tighten the language around wage-cost changes, so you’re not absorbing a structural cost increase in silence.
This is a small change with a clear lesson: subsidies can help, but they are not a foundation. A steadier foundation is modest, boring discipline, knowing your true cost per hour, keeping contracts readable and firm, and leaving a little room in your pricing for reality to move. If you do that, the end of the LKV is not a crisis. It’s a nudge to run your business on numbers you control, not on advantages that can disappear overnight.
