Benefit for Older and Partially Incapacitated Former Self-Employed Persons (IOAZ)

You can receive an IOAZ benefit if you do not have sufficient income from your business and want to stop this business within 18 months. This benefit supplements the (family) income up to the level of social assistance.

More information about the IOAZ can be found on the website of the national government.

How does it work?

You can apply for benefits through BZF.

Conditions

You can receive an IOAZ benefit if you meet certain conditions.

You can apply for an IOAZ benefit if your business does not generate enough income to live on. In addition, the following conditions apply:

• you are 55 years or older, but you have not yet reached the state pension age;
• You have worked continuously for the past 10 years, the last 3 years of which have been as a self-employed person. Before that, you worked for 7 years as a self-employed person or in paid employment.
• you have worked 1,225 hours or more per year in your own company. This is an average of about 24 hours per week. 
• your partner is considered self-employed and is entitled to IOAZ if they are 55 years or older, but have not yet reached the state pension age, and work at least 525 hours per year in the company;
• the income (profit) from your business has been less than € 27,493.00 on average over the last 3 years (amount in 2023). Any other income is also included in the income calculation. If your partner works in the business, this income may be included. This applies to the work allowance (above € 5,000.00) and the profit share. Other income of your partner, such as salary or unemployment benefits, is not included;
• you expect a future income of less than € 30,854.00 (amount as of January 1, 2022). The municipality will investigate this;
• the monthly income, after termination of the business, is lower than the applicable benefit standard; 
• you must submit the application for an IOAZ benefit before the company is terminated. After the application, you must terminate the company within a period of 18 months. The right to an IOAZ benefit does not arise until the company has been terminated.

Cost Sharing Standard

Do you receive an IOAZ benefit and live with others aged 27 or older in one house? Then the cost-sharing standard may apply to you.

The cost-sharing standard is the IOAZ benefit you receive if you live in the same house with one or more adults aged 27 or older. These are the so-called cost-sharers. These can be your children, but also other residents. Cost-sharers can contribute to your housing costs. That is why a cost-sharing benefit is lower. This does not apply if the residents are students who can receive student finance. These students do not count towards the amount of the benefit. Residents with a benefit retain their cost-sharing standard.

Obligation to work

If you receive an IOAW benefit, the obligation to work applies to you - and your partner, if applicable. The obligation to work includes the following:

• You are looking for work and accept an offer of work.
• you use a service provided by the municipality that can help you find work or be active in another way;
• You cooperate in an investigation into your job opportunities.

If you do not comply with this, the municipality may temporarily reduce the right to benefits. You will then receive less benefits.

Obligation to provide information

Under the IOAW (Supplementary Benefits Act), you – and your partner if applicable – have a duty to provide information. This includes the following:

• you must, upon request or as soon as possible on your own initiative, report everything that may affect the right to benefits or work integration.

If you do not comply with your obligation to provide information, or do so insufficiently, the municipality must revise or withdraw your right to benefits. This may mean that the municipality will reclaim the assistance provided. In addition, the municipality will determine whether a fine should be imposed.