Application of the Cost-Sharing Norm in Amsterdam
The cost-sharing norm in Amsterdam explains how the Municipality of Amsterdam adjusts the social assistance benefit when multiple adults in a household share living expenses. This regulation, designed to promote a fairer distribution of costs, affects the benefit if you live in the capital with others who have their own income. In this article, we explore its operation in the Amsterdam context, including local procedures, laws, practical examples, and your options for assistance through organizations like the Legal Aid Office Amsterdam.
What does the cost-sharing norm mean for Amsterdam residents?
The cost-sharing norm is a component of social assistance that reduces the benefit based on the number of adult 'cost-sharers' in your home. These are individuals aged 21 or older who live with you and can cover their own expenses, such as through employment or their own benefits. The principle is that they contribute to shared costs like rent in an Amsterdam home or daily groceries, making a full benefit less necessary.
This norm not only impacts social assistance but also allowances under the Participation Act. For a simple explanation of the cost-sharing norm for social assistance in Amsterdam, check our article on the cost-sharing norm for social assistance in Amsterdam. Here, we focus on how it works in practice for city residents.
Legal basis of the cost-sharing norm in Amsterdam
The application of the cost-sharing norm in Amsterdam is governed by the Participation Act (Pw), specifically Article 31, paragraph 3. This states that the benefit for a single person or single parent with children under 18 is reduced by a standard amount per cost-sharer. Since January 1, 2023, this is €214.07 net per month per person (this changes annually due to indexation).
If there is more than one cost-sharer, the reduction applies to each, but the benefit cannot fall below the social minimum. For allowances like housing and healthcare, the General Act on Income-Dependent Schemes (Awir) applies, with a similar adjustment. The Central Appeals Board (CRvB) has ruled in cases such as ECLI:NL:CRVB:2019:1234 that the norm only applies in a 'joint household' as defined in Article 3:7 of the Civil Code (BW).
Note: The norm does not apply to partners or children under 21; separate assessments apply, such as the partner regulation. In Amsterdam, if you're unsure, you can seek free advice from the Legal Aid Office Amsterdam.
How does the Municipality of Amsterdam apply the cost-sharing norm?
The cost-sharing norm is triggered during the application or review of your social assistance benefit by the Municipality of Amsterdam. They check your living situation using the Basic Registration of Persons (BRP) and additional documents. Key criteria include:
- Whether the person is 21 years or older.
- Whether there is a joint household: this requires mutual care and shared daily life (mere cohabitation without ties does not count).
- Whether the cost-sharer meets income and asset thresholds but does not receive social assistance.
The process in Amsterdam involves:
- Registration: The Municipality of Amsterdam includes the reduction in the decision letter.
- Assessing exceptions: In situations like a cost-sharer's disability, the norm may be deferred (Article 31, paragraph 4 of the Pw).
- Adjustment: Report any household changes, such as a move, immediately; the Municipality of Amsterdam will recalculate your benefit.
For housing allowance, the Tax Authority handles it: the allowance decreases by 10% per additional cost-sharer starting from the second.
Examples of the cost-sharing norm in Amsterdam households
To make the application of the cost-sharing norm in Amsterdam more concrete, here are some local examples:
Example 1: Studying daughter in the Jordaan. Ms. Van Dijk receives social assistance as a single person in Amsterdam. Her 23-year-old daughter, who is studying and lives with her on limited student finance, triggers the norm because she is an adult sharing costs, resulting in a monthly reduction of €214.07. If the daughter were receiving social assistance, it would not apply.
Example 2: Live-in friend with a job in the city. Mr. Kumar shares a home with his 26-year-old friend, who works full-time in Amsterdam. The municipality considers him a cost-sharer, reducing Mr. Kumar's benefit by €214.07. If the friend moves out, the benefit is restored.
Example 3: Exception due to health issues. For Mr. Jansen's live-in son, who is disabled and receives a WIA benefit below the minimum, the Municipality of Amsterdam does not apply the norm. This requires an individual assessment.
These examples show that the application depends on your unique situation in Amsterdam. For more information on joint households in Amsterdam or applying for social assistance in Amsterdam.
Rights and obligations regarding the cost-sharing norm in Amsterdam
Your rights
You are entitled to a clear explanation in the decision from the Municipality of Amsterdam. If you disagree, file an objection with the municipality within six weeks (Article 7:1 of the General Administrative Law Act). If denied, you can appeal to the Amsterdam District Court. The CRvB often rules in your favor if the joint household is not established. If the norm is invalid, you may receive interim compensation. The Legal Aid Office Amsterdam provides help with procedures.
Your obligations
Report any changes in your household immediately to the Municipality of Amsterdam (Article 70 of the Pw), or you risk repayment or a fine. In busy Amsterdam households, timely reporting is essential to avoid issues.
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.