Exempt Income Threshold for Benefits in Rotterdam
In Rotterdam, the **exempt income threshold** for benefits ensures that a protected portion of your benefit income remains safe from creditors. This helps residents cover essential expenses like rent in the city, groceries, and medical care. In the Netherlands, this system safeguards citizens facing financial difficulties, with special attention to social benefits. When creditors place a garnishment on your income—including benefits such as housing benefit or healthcare benefit—a **legal exemption** applies, securing your basic needs, particularly important in a dynamic port city like Rotterdam where living costs can be high.
What Is the Exempt Income Threshold?
The **exempt income threshold** is a legally protected portion of your income and assets that creditors cannot seize. Its purpose is to prevent your entire income from being claimed, ensuring you can still meet daily necessities. This applies to wage garnishment, benefit garnishment, and garnishment of benefits. For low-income residents in Rotterdam, benefits like childcare allowance, healthcare benefit, and housing benefit are often critical, and these fall under the **General Administrative Law Act (Awb)** as periodic income. While garnishment is possible, it must always respect the exempt income threshold.
The calculation is based on your net income, household composition, and fixed expenses, and is adjusted annually according to standards such as the minimum wage and social assistance norms. For single individuals in Rotterdam, the baseline is typically around **90% of the minimum wage**, but benefits can increase this amount, accounting for local rental pressures.
Legal Framework
The exempt income threshold is established under the **Law on Exempt Income (Wgvp)**, introduced in 2019 and fully active since January 1, 2021. This law amends Book 4 of the Dutch Civil Code (BW), particularly **Article 475 BW**, which outlines the calculation method. For benefits, the **General Act on Income-Related Regulations (Awir)** applies. Garnishment on benefits may only affect the portion exceeding the exempt income threshold, as stipulated in **Article 157 of the Bankruptcy Act (Fw)** in cases of bankruptcy.
The Tax Authority, which administers benefits, must comply with the exempt income threshold. If a creditor or bailiff in Rotterdam garnishes more than allowed, you can challenge it before the **Rotterdam District Court**. The law requires automatic calculation by the garnishing party, but you can request a review in cases of changes, such as family expansion or adjustments to benefits. The **Rotterdam Legal Advice Desk (Juridisch Loket Rotterdam)** offers free guidance on this.
Calculating the Exempt Income Threshold
The formula is standardized:
- Start with your net monthly income, including benefits.
- Subtract the exempt income threshold: for a single person, approximately **90% of the minimum wage** minus fixed costs, with benefits counted within the norm.
- For families with children: additional benefits, such as **€200 per child for childcare allowance**.
Example: You receive **€300 housing benefit** and **€200 healthcare benefit** in Rotterdam. With a net income of **€1,200**, the exempt income threshold is roughly **€1,080** (90% of the minimum wage), leaving only **€120** available for garnishment. Account for Rotterdam’s high rental costs when calculating fixed expenses.
Application to Benefits
Benefits are directly deposited and treated as income, making them vulnerable to garnishment. The **Wgvp** provides specific protections: benefits below the social assistance threshold (e.g., healthcare benefit up to **€113 for single individuals in 2023**) are fully secure. This is crucial in the aftermath of the **benefit scandal**, where many Rotterdam residents faced debt due to repayments. The government has imposed a **moratorium on garnishment for affected individuals**, and the **Municipality of Rotterdam** offers additional debt assistance through the **Debt and Collection Desk (Loket Schulden en Incasso)**.
Creditors sometimes garnish the full benefit amount, but the exempt income threshold corrects this. For **childcare allowance**, linked to work in Rotterdam’s port or industry, the law prevents a downward spiral by only allowing creditors to claim the surplus.
Practical Examples
Consider Maria, a single mother from Rotterdam-South with two children. She receives **€400 childcare allowance**, **€250 housing benefit**, and **€1,000 salary**. If her income is garnished, the exempt income threshold calculates to **€1,500** (including child benefits), largely protecting her payments for local childcare and rent.
Example two: Ahmed from Rotterdam-West has debts with an energy provider. Garnishment of his **€113 healthcare benefit** is halted because it falls within the exempt threshold, allowing him to cover medical costs without additional hardship.
These cases illustrate how the exempt income threshold safeguards benefits, though errors occur. In 2022, the **Rotterdam District Court** ruled that excessive garnishment of benefits was unlawful, ordering repayment and compensation.
Rights and Obligations
Your Rights:
- Automatic compliance with the exempt income threshold during garnishment in Rotterdam.
- Request a review for changes via bailiff, Tax Authority, or the **Rotterdam Legal Advice Desk**.
- File an objection within **6 weeks** if calculations are incorrect, directed at the garnishing party or **Rotterdam District Court**.
- For benefit scandal victims: additional safeguards under the **Temporary Act for Compensation of Benefit Scandal Victims**.
- Provide accurate and up-to-date information about income and benefits.
- Submit your exempt income threshold to the bailiff **within 8 days** of garnishment.
- Continue repaying debts within the limits of the exempt income threshold, with support from the **Municipality of Rotterdam** if needed.
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.