Working doesn't always pay

14th November 2011, Comments 0 comments

Getting a job is not always financially rewarding, particularly for single parents and couples on welfare. A single parent who finds a job at the legal minimum wage for four days a week faces a four-percent drop in income.

The above example was taken from a cabinet review of income policy in the period 2002–2010 drawn up by Social Affairs Minister Henk Kamp, which was sent to parliament on Monday. Mr Kamp says the report shows the importance of introducing measures to make work pay.

Starting next year, the cabinet wants to gradually lower welfare benefits over a 20-year period. If approved by parliament, the measure would in practice translate to a reduction of between 70 and 100 euros a year, eventually lowering welfare benefits by a total of 2,000 euros a year.

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