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A higher salary due to a new job, promotion or raise? That's fantastic! You must have worked very hard for that, congratulations. Earning more can also cause other income to drop or disappear. Want to know what to consider before you click through to your favorite online shop? Read this blog and know where you stand.
Supplements and salary are like yin and yang, they complement each other and together make up your income. At a lower salary, you may be entitled to supplements. With a higher salary, supplements such as health care supplement and rent supplement may be reduced or even eliminated. What can you earn for benefits? And what does this mean now that you have started earning more? The income limit changes every year. Check here the current income limit for care allowance and whether you still fall below it. Do you (also) receive rent allowance? Check here Up to what salary you are entitled to rent subsidy and whether the rent subsidy will be reduced or stopped because you now have a higher salary. Do you have children? If so, you may also have a child budget and child care allowance that will change.
Supplements to supplement your salary are arranged with the Tax Office. Of course, they do not yet know that you have started to earn more. You must report this change to the Tax Office within four weeks. If you don't, you may receive too much allowance, which -very annoyingly- you will have to pay back at a later date. All changes you need to report in connection with benefits and salary can be done here.
With a low income, in addition to the supplements on your salary we mentioned above, you may receive support from the municipality where you live, in the form of general assistance and an individual income supplement. If your salary is now higher than the social minimum, you are no longer entitled to this support. The social minimum changes every six months. Check the social minimum website of the UWV the social minimum for your situation.. In most cases you can report that you have started to earn more because it affects your municipal income support online, through the website of your municipality.
With benefits, if you have a benefits partner, you look at the annual income of the two of you together. So even if your partner gets a higher salary, that can mean something for your joint income. You have a benefits partner if you are married or in a registered partnership. But there are more situations in which you are benefit partners. Someone registered at your address can also be your allowance partner. Not if that person is a subtenant of yours, but, for example, if you have a child together or own the condominium you both live in together. Check carefully. All situations in which you are benefit partners are listed on this page of the tax authorities.
Were you not using surcharges and the amount you get added is pure profit? Or are you making good progress despite the changes to your allowances? That's superfine, of course. It means you now have more money to spend. Time to allow yourself some more fun things. However, we would like to remind you that you can also set aside (part of) the extra money you will receive. For example, save for bigger expenses like a car or a vacation. And if you don't already, it would also be wise to build up a buffer. When you face unexpected financial challenges, it's obviously very nice to have that. If the washing machine breaks down or the roof leaks. Or suppose you unexpectedly lose your job and your income drops again, you're glad you still have a savings account.
If your benefits are phased out or stop altogether because you get a higher salary, that's a setback. So you're not going up as much as you might have thought. Does this make you doubt whether you should accept that new job or position? Don't! That raise, promotion or new job is always good news. First, be proud that you are saving yourself financially. And second, it is a stepping stone for your further future. You climb up your salary from here at least once a year. And it's not to be hoped, but also know that unemployment benefits are calculated on the amount of your salary, and not on supplements. So either way, give yourself a well-deserved pat on the back. You are doing super well.