Fiscal Analysis

Netherlands: What Labour Market Exclusion Costs the State

What it costs the state in disability and sickness benefits when people are kept out of work, compared across European countries.

€20.6bn
Spent on disability and sickness benefits
1.8%
Benefit Expenditure As share of GDP

Country Profile

As share of GDP1.8% of GDP

Direct benefit payments

UWV Jaarverslag 2024 — benefits paid under WIA, WAO, WAZ, Wajong and Ziektewet · 2024

€20.6bn

→ Disability pension

UWV Jaarverslag 2024 — WIA, WAO, WAZ and Wajong benefits · 2024

€18.1bn

→ Sickness benefit

UWV Jaarverslag 2024 — Ziektewet benefits · 2024

€2.5bn

Local currency: €20.6bn

Per working-age adult

€1,785

Context

Covers WIA (€10.7bn), the older WAO and WAZ schemes (€3.3bn), Wajong for young disabled people (€4.1bn) and Ziektewet sickness benefit for people without an employer (€2.5bn). UWV made 69,046 new WIA awards in 2024. An independent government commission (OCTAS, 2023) found that annual inflow into WAO/WIA fell from 1.5% of the labour force in the late 1990s to 0.5% in 2022, comparable with neighbouring countries.

Methodology

Public cash benefits for disability and sickness paid by UWV in 2024, excluding employer social charges. Employer-paid sick pay, lost tax revenue and employment-programme costs are not included. Share of GDP uses Eurostat GDP for 2024; per working-age adult means per person aged 15–64 (Eurostat, 1 January 2024).

In Practice

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