Tax incentives have been taken so that an employee is better off with the minimum wage compared to social assistance benefits, but the differences are small. A disadvantage of our social security is that people who would rather be lazy than tired can abuse it. Everyone has the right to a minimum subsistence level based on the minimum wage. The income from a job must be at least the minimum wage. In the event that no income is received from a job, you are entitled to a comparable amount. There is no incentive to go to work. Expressed in net wages or benefits, the worker has an advantage, but the difference is often too small to get people to work.
Ultimately, there is a right to social assistance benefits
Our social system has various safety nets. In the event of long-term illness, an employee is under certain conditions entitled to the WIA and in the past to the WAO. If you lose your income, you are entitled to unemployment benefits if the conditions are met. In the absence of the right, or over time, the right to benefits may lapse. As a final safety net, you will still be entitled to social assistance benefits.
Mandatory to look for work
People who ultimately end up on social assistance are obliged to look for a paid job. They cannot impose any conditions on the job. In principle, they are not allowed to refuse a job, but there are reasons why a benefit recipient cannot always be put to work. One reason, for example, is that the work is available in another part of the Netherlands.
Encourage benefit recipients to go to work
The focus from social security is entirely on finding a job. The problem, however, is that it is difficult to find work for someone who does not want to work. They may be required to apply for jobs, but they can easily miss out on those conversations. People who cannot get ahead of themselves are the problem of our social system.
Cut benefits
If the benefit recipient does not meet the conditions for entitlement to the benefit, the benefits agency has the option to reduce the benefit. This is an effective way to put pressure on people to go to work. Due to the reduction in benefits, they receive a benefit that is insufficient to make ends meet, with all the associated problems.
Encourage working even further at the expense of benefits
If the difference between the net benefit per month and the net minimum wage of an employee is still too small, the minimum wage must be increased or the benefits must be further reduced. The major disadvantage of raising the minimum wage is that it could cost jobs. The employer has to pay more money to hire people. It is also not possible to further reduce social assistance benefits. Social assistance is already the absolute minimum subsistence on which families must be able to survive.
Most benefit recipients want to do paid work, but cannot get a job. The labor market is flooded with people who have better papers and specific work experience.