USA

Wage dispensation (Wajong)

Wage dispensation means that the employer has to pay an employee with a Wajong or WWB benefit less wages than his healthy colleague. This may even be below the minimum wage. What is wage dispensation? What are the conditions and what is the duration of wage dispensation?

What is wage dispensation?

Wage dispensation is possible for a young disabled person (Wajonger) who, as a result of his illness or conversation, delivers a work performance that is significantly less than that of a healthy employee. Wage dispensation means that the employer temporarily pays less wages to the employee. The UWV supplements the Wajonger to at least 75% of the minimum (youth) wage.

Duration of wage dispensation

Ultimately, the aim is for Wajongers to earn as much as other employees. Therefore, the maximum duration of wage dispensation is in principle five years. This scheme also applies to employees under the age of 18. Extension is possible: the starting point remains five years.

Apply for wage dispensation

An employer can submit a request for wage dispensation using the Wajong Wage Dispensation Application form. An employment expert from the UWV WERKbedrijf assesses whether there is indeed a clearly inferior work performance that is related to the illness or disability. The labor expert makes an assessment and determines how much wages the employer must pay.

Lower than minimum wage

If the determined wage is lower than the minimum wage, the Wajonger may be entitled to an additional Wajong benefit and possibly a supplement under the Wajong Act.

Conditions for wage dispensation

The following conditions apply to wage dispensation:

  • The employee for whom the wage dispensation is requested is disabled and younger than 18 years of age or;
  • The employee for whom the wage dispensation is requested will receive a Wajong benefit.
  • The employee for whom wage dispensation is requested must be informed of this

 

Hiring Wajongers: regulations

In addition to the wage dispensation, there are other instruments intended to encourage employers to employ Wajongers, such as:

  • Trial placement
  • Participation place
  • Wage cost subsidy
  • No-risk policy

 

Wage dispensation WWB

In the context of labor participation among people who are difficult to employ, municipalities may experiment for a period of one and a half years with wage dispensation for people who receive a WWB benefit (social assistance benefit). Also for this Pilot Wage Dispensation, the employer pays the employee according to work capacity. The municipality provides an additional benefit.

This is a trial in which companies can offer jobs to people with WWB benefits through wage dispensation. With this pilot, the government wants to encourage companies to hire more people with a work disability. In addition, savings on benefit costs can be achieved for the participating municipalities. A separate law has been introduced for the trial, the Temporary Wage Dispensation Pilot Act.