Exempt Income Threshold for Benefits in Amsterdam

In Amsterdam, where living costs such as rent and healthcare are high, the **exempt income threshold** for benefits is crucial for your financial protection. This is the portion of your benefit income that creditors cannot seize, ensuring you can cover essential needs like housing in the city, food, and medical care. In the Netherlands, this mechanism safeguards debtors, particularly within the social security system. When income garnishment applies—including benefits like housing allowance or healthcare benefit—a legal exemption protects your minimum standard of living, especially relevant for low-income residents in Amsterdam.

What Is the Exempt Income Threshold?

The **exempt income threshold** is a legally protected portion of your income and assets that cannot be garnished. It prevents creditors from claiming everything, allowing you to cover daily expenses. This applies to wage garnishment, benefit garnishment, and garnishment of benefits. For Amsterdammers, where benefits often serve as a lifeline due to the expensive housing market, this safeguard is critical. Benefits such as childcare allowance, healthcare benefit, and housing allowance fall under the **General Administrative Law Act (Awb)** and are treated as periodic income—but with strict adherence to the exempt threshold.

The calculation is based on your net income, household composition, and fixed expenses, and is adjusted annually to align with minimum wage and social assistance standards. For single individuals in Amsterdam, the baseline often amounts to around **90% of the minimum wage**, though benefits can increase this amount due to their role in offsetting urban costs.

Legal Framework

The exempt income threshold is governed by the **Law on Exempt Income Threshold (Wgvp)**, introduced in 2019 and fully operational since January 1, 2021. This law amends **Book 4 of the Dutch Civil Code (BW)**, specifically **Article 475 BW**, which outlines the calculation method. For benefits, the **General Act on Income-Related Benefits (Awir)** applies to payments. Garnishment of benefits is only permitted **above the exempt threshold**, as stipulated in **Article 157 of the Bankruptcy Act (Fw)** in cases of bankruptcy.

The **Tax Authority**, responsible for benefits, must uphold the exempt threshold during garnishment. If a creditor or bailiff in Amsterdam seizes more than allowed, you can challenge this at the **District Court of Amsterdam**. While the law requires automatic calculation by the garnishing party, you can request a review for changes—such as adding a child or adjusting benefits—through local support services.

Calculating the Exempt Income Threshold

The formula for calculation is standardized:

Start with your **net monthly income**, including benefits.
Subtract the exempt threshold: for a single person, approximately **90% of the minimum wage** after deducting fixed costs, with benefits remaining protected if within the norm.
For couples and children: additional benefit amounts, such as **€200 per child** for childcare allowance.

**Example:** You receive **€300 in housing benefit** and **€200 in healthcare benefit** monthly in Amsterdam. With a net income of **€1,200**, the exempt threshold amounts to roughly **€1,080** (90% of the minimum wage), leaving only **€120** subject to garnishment—accounting for Amsterdam’s high rental pressures.

Application to Benefits

Benefits in Amsterdam are particularly vulnerable due to direct deposits and their status as income. However, the **Wgvp** protects them: benefits below the social assistance threshold, such as **€113 in healthcare benefit for single individuals in 2023**, are fully safeguarded. This is vital in the aftermath of the **benefit scandal**, where many Amsterdammers faced debt due to repayments. The government offers additional protections, including a **garnishment moratorium** for affected individuals.

Creditors sometimes garnish entire benefit payments, but the exempt threshold corrects this. For **childcare allowance**, linked to employment in the bustling city, the law prevents a downward spiral by only surrendering the surplus to creditors via the Tax Authority.

Practical Examples

Consider **Maria**, a single mother with two children in Amsterdam. She receives **€400 in childcare allowance**, **€250 in housing benefit**, and **€1,000 in wages**. If her income is garnished, the exempt threshold calculates to **€1,500** (including child benefits), ensuring her payments for childcare and rent largely remain intact.

Another case: **Ahmed** has debts with an energy provider. Garnishment of his **€113 healthcare benefit** is halted because it meets the threshold, allowing him to cover medical costs in Amsterdam without issue.

These scenarios illustrate benefit protection, though errors occur. In **2022**, the **subdistrict court of Amsterdam** ruled that excessive garnishment of benefits was unlawful, mandating repayment.

Rights and Obligations

Your Rights:

Automatic enforcement of the exempt threshold in all garnishments in Amsterdam.
Request a review for changed circumstances (e.g., via the bailiff, Tax Authority, or **Amsterdam Legal Aid Office**).
File an objection within **6 weeks** against incorrect calculations with the garnishing party or **District Court of Amsterdam**.
For benefit-affected individuals: additional protection under the **Temporary Act for Compensation of Benefit Affected Parties**, with local guidance from **Municipality of Amsterdam**.

Your Obligations:

Provide accurate and up-to-date information about income and benefits.
Document the exempt threshold within **8 days** of garnishment with the bailiff.
Continue repaying debts on the garnishable portion while focusing on stability in Amsterdam.

For personalized advice in Amsterdam, contact the **Amsterdam Legal Aid Office** or **Municipality of Amsterdam** for free debt counseling support.

Veelgestelde vragen

Wat is mijn retourrecht?

Bij online aankopen heb je 14 dagen retourrecht zonder opgaaf van reden, tenzij de wettelijke uitzonderingen gelden.

Hoe lang geldt de wettelijke garantie?

Goederen moeten minimaal 2 jaar meewerken. Defecten die binnen 6 maanden ontstaan worden verondersteld al aanwezig te zijn.

Kan ik rente eisen over schulden?

Ja, je kunt wettelijke rente eisen (momenteel ongeveer 8% per jaar) over het openstaande bedrag.

Wat kan ik doen tegen oneerlijke handelspraktijken?

Je kunt klacht indienen bij de consumentenbond, de overheid of naar de rechter gaan.

Wat is een kredietovereenkomst?

Een kredietovereenkomst regelt hoe je geld leent, wat de rente is, en hoe je dit terugbetaalt.