The Individual Sustainability and Early Retirement Scheme (Maatwerkregeling duurzame inzetbaarheid en eerder uittreden - MDIEU) is a subsidy scheme for companies that take a responsible approach to employee retirement and health. Even when workers retire early, these companies still have a chance of receiving subsidies.
Maintaining sustainable performance
Life expectancy in the Netherlands is on the rise. As a result, pensioners receive pension fund payments longer, the percentage of pensioners in society increases, which creates an additional financial burden on the pension system, which it cannot cope on its own. The retirement age is periodically raised, and people have to work longer. Companies-employers are obliged to create working conditions under which their employees can work out to retirement without significant health problems - this is what is called sustainable performance.
To encourage employers to create healthy working conditions, a subsidy scheme has been developed. Subsidies are distributed by sectors of the economy: industry, education, construction, etc. The employer, together with representatives of the labor collective, must develop a plan of measures and activities that will help employees achieve retirement while maintaining their health. The MDIEU program offers ready-made schemes that you can use: they contain a list of measures for the implementation of which you can get subsidies. Read more - on the website of the Ministry of Social Protection.
Early retirement
Some employees who have worked conscientiously for years cannot work for health reasons - they have the possibility of early retirement. The employer can offer such employees benefits for the last 3 years. The amount of the benefit is equivalent to the Old Age Pension (AOW), which fully ensures the employee's pension rights. Read more - on the government website.
Until December 31, 2025, employers are exempt from paying taxes on such benefits. In order to offset these benefits through subsidies, the employer is required to ensure the sustainable performance of employees in accordance with the MDIEU. Learn more about the Individualized Sustainable Employment and Early Retirement Scheme (MDIEU) - Online.
If you have any questions about the application of Dutch law in labor relations and business, contact Nalog.nl for advice!
Publication Date: 27.09.2022
