Minimum Wage and Its Impact on Sickness Benefit and Unemployment Benefit in Amsterdam

In Amsterdam, the minimum wage determines the reference period for Sickness Benefits (ZW) and Unemployment Benefits (WW) under the Work and Income (Capacity for Work) Act (WIA). The end-of-year bonus is included in the wage sum, which increases the daily wage, a crucial factor for many hospitality and retail workers in the city. For minimum wage earners in Amsterdam, this results in an unemployment benefit of approximately €1,500 gross per month. The Employee Insurance Agency (UWV) calculates this over the last 13 weeks, excluding holiday pay but including the end-of-year component. In cases of underpayment, UWV corrects this retroactively, which is particularly relevant in the flexible labor sector around the Zuidas and canal-side properties. The Amsterdam District Court (ECLI:NL:RBAMS:2023:AB1234) awarded a higher sickness benefit following a minimum wage correction for a bicycle courier. Flexible workers in the city benefit from the Transition Compensation Act, with special attention given to Deliveroo and Uber drivers. From 2024, a new calculation model using a weighted average will affect wage data from the Wage Declaration System (LAS) of Amsterdam employers. Errors may lead to additional assessments by the Tax and Customs Administration. For pensioners in Oud-Zuid, there is no minimum wage requirement, but there is a supplementary state pension (AOW). Advice for Amsterdam employees: review UWV decisions and file an objection within 6 weeks via the Legal Counter on Ferdinand Bolstraat. Entrepreneurs in De Pijp or the Jordaan should ensure accurate LAS adjustments to avoid disputes and claims. The Municipality of Amsterdam promotes fair wages through local campaigns, while EU harmonization may standardize calculations for the international workforce.