TRANSITIONAL ALLOWANCE

Deductible expenses transitional allowance

Table of contents

A company can deduct the cost of outplacement or training from the employee's transitional allowance. You can read how this works here.

Sometimes a company can deduct the costs of outplacement or training from the employee's transitional allowance. The costs must then have been incurred as a result of any dismissal. The employer must also have consulted with the employee. The conditions for deducting costs related to employability are set out below.

Conditions for deducting costs transitional allowance

If the employer wants to deduct the costs of employability from the transitional allowance, the following main requirements must be met.

The employer must have itemised the costs and informed the employee.
The employee has agreed in writing to deduct these costs from the transitional allowance.
The employer incurred the costs itself.
The costs were incurred for the benefit of the employee.
The costs may only be deducted from the part of the transitional allowance accrued in the period in which the costs were incurred or hereafter.

There are still a number of conditions for deducting costs that we are happy to inform you about.

Calculate deductibility of costs of transitional allowance?

To calculate the amount of the transition al allowance, you will have to calculate the basic salary. To do this, you will take the full salary (i.e. without discount due to illness). You will also have to include the fixed and variable wage components to calculate the full monthly salary. The end date is the date the obligation to continue payment of wages ceases (104 weeks after the first day of illness) when the employee requests the termination and the actual date when the employer requests the dismissal. You can calculate the transitional allowance after 2 years of illness using the calculation tool: ‘calculate transitional allowance‘.

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