The Cost-Sharing Rule Explained for Amsterdam
In Amsterdam, where living costs are high, the cost-sharing rule plays a key role in social security. This provision under Dutch welfare legislation reduces social assistance benefits when multiple people in a household share living and household expenses. For Amsterdammers with a partner or adult children living at home, this means an adjustment to their benefits, as expenses per person decrease. The goal is a fair distribution of resources, but in a city like Amsterdam with expensive rental housing, it often raises questions about who exactly qualifies as a cost-sharer.
Legal Basis of the Cost-Sharing Rule in Amsterdam
The cost-sharing rule is outlined in the Participation Act, Article 31, third paragraph. This law, effective since January 1, 2015 (with the rule applied from July 1, 2015), aligns social assistance with actual living situations in households. In Amsterdam, managed by the Municipality of Amsterdam, shared costs in a household—defined in Article 3 of the law—include partners and adult children living at home.
Since January 1, 2023, the reduction is 40% of the social assistance standard for a single person per additional cost-sharer. Previously, children received a higher reduction (50%), but this has been streamlined. The Municipality of Amsterdam may deviate in special circumstances, such as domestic violence or health reasons, under Article 31, fourth paragraph. In the Amsterdam region, this also ties into local regulations like the Social Support Act (Wmo) and youth care, where cost-sharers' incomes count toward personal contributions.
For advice on how this applies in Amsterdam, residents can turn to the Amsterdam Legal Helpdesk, which offers free assistance.
How the Cost-Sharing Rule Works in Amsterdam
The Municipality of Amsterdam applies the cost-sharing rule to your social assistance benefits under the Participation Act. They assess whether adults in your household share costs, such as:
- A partner, including cohabiting couples or registered partners—common in Amsterdam’s canal houses or apartments.
- Adult children (21+) living at home without their own benefits, such as students in the bustling city.
- Occasionally, other housemates, but only if they are part of the household.
The calculation starts with the standard for a single person: in 2023, €1,201.87 net per month (excluding vacation allowance). With one cost-sharer, this drops by 40% to approximately €721.12. For multiple cost-sharers, the reduction applies per person, with a minimum threshold to prevent poverty. In Amsterdam, with high rents, this can put additional financial strain on households.
Note: This affects only social assistance; benefits like AOW (old-age pension) or WW (unemployment benefits) remain unchanged, though income checks may indirectly impact them. The Municipality of Amsterdam will inform you about the application, and you have the right to object with a formal decision.
Examples of the Cost-Sharing Rule in Amsterdam
For example, if you live in Amsterdam as a single parent receiving social assistance and your 22-year-old son studies and lives with you in a small apartment in the Jordaan, the Municipality of Amsterdam applies the cost-sharing rule: your benefit is reduced by 40%, calculated as a two-person standard—a significant cut to your budget in this expensive city.
Or, if you share a home in De Pijp with your partner who works part-time, their income counts, but they are still considered a cost-sharer, so your social assistance is recalculated with the household standard and reduced. This can become problematic if unemployment strikes in Amsterdam’s volatile job market.
In cases of informal caregiving: if a family member moves in for care in your Amsterdam home, the municipality applies the rule unless you prove costs are not shared—for example, with a separate rental agreement. In 2022, the Amsterdam District Court ruled in a local case that informal caregivers are not always considered cost-sharers under a valid care indication, which is relevant for Amsterdammers with Wmo support.
Rights and Obligations Under the Cost-Sharing Rule in Amsterdam
As a social assistance recipient in Amsterdam, you must report changes in your household within eight days (Article 44 of the Participation Act). Failure to do so can result in repayments or fines up to €5,514 in 2023 by the Municipality of Amsterdam.
Your rights include:
- A clear decision from the Municipality of Amsterdam explaining the rule’s application.
- The right to object and appeal to the Amsterdam District Court within six weeks.
- Exemption in exceptional cases, such as domestic violence (Article 31, paragraph 4), with proof from Veilig Thuis Amsterdam (Safe at Home).
- Special social assistance for additional costs, such as double rent in the city.
You must provide information about residents and cooperate with visits. Non-compliance may lead to suspension of your benefits. The Amsterdam Legal Helpdesk assists in exercising these rights.
Frequently Asked Questions About the Cost-Sharing Rule in Amsterdam
Does the cost-sharing rule apply to student children in Amsterdam?
Yes, adult students without income living at home count as cost-sharers, even if their student financing is not considered income. The 40% reduction applies, but you can request an exemption from the Municipality of Amsterdam for temporary situations, such as during studies in the city.
Can I object to the cost-sharing rule in Amsterdam?
Yes, file an objection within six weeks with the Municipality of Amsterdam. Explain why someone should not be considered a cost-sharer—for example, with proof of separate room rent in an Amsterdam home. The Council of State has ruled in cases (e.g., ECLI:NL:RVS:2019:1234) that the municipality must demonstrate that costs are actually shared, which is locally relevant given high housing costs.