The reduction in working hours (wtv / werktijd verkorting) has been stopped with immediate effect.
- If a permit has been granted, it will remain in force.
- In the event of an extension, the new regulation must be used.
- When you filed for wtv but have not received an answer yet: you will be notified. Your application for the withdrawn wtv will be considered as an application for ‘temporary arrangement compensation labor costs’ (NOW / noodmaatregel overbrugging voor werkbehoud).
Introduction new temporary measure (NOW)
- Employers can file an application for substantial reimbursement in wage cost and receive an advance by the UWV.
- This allows employers to pay employees with a fixed and flexible contract (the employer can also file applications for on-call employees; the employment agency for temporary workers)
- The reimbursement can be filed for a period of 3 months.
- With the possibility of an extension of 3 months (possible different conditions).
When applying for wage costs compensation, the employer commits not to dismiss employees for budget reasons, at least for the period that the employer is receiving the wage compensation.
- The employer continues to pay 100% of the salary to the employee.
- The applicant expects a turnover loss of at least 20%.
- The application applies for a period of 3 months (with an extension of 3 months if necessary).
- The measure applies to turnover losses which are incurred starting from 1 March 2020.
- The amount of compensation depends on the loss of turnover of a company, with an maximum of 90% of the wage costs. Below are some examples of how the relationship between the decrease in turnover and the amount of compensation works out:
- If 100% of the turnover drops, the amount of compensation will be 90% of the wage cost of the employer.
- If 50% of the turnover drops, the amount of compensation will be 45% of the wage cost of the employer.
- If 25% of the turnover drops, the amount of compensation will be 22.5% of the wage cost of the employer.
Advance payment NOW:
After the application, the Dutch government (UWV) will provide an advance payment of 80% of the requested compensation. It is subsequently determined what the actual decline in turnover has been. An audit report is required for applications exceeding a, still to be determined, amount of reimbursement. When the reimbursement is finally determined, an adjustment will still be made if there has been a decrease in the wage bill.
How to apply for the NOW:
Pending applications will be considered as applications for the new reimbursement regulations. Filed by the UVW. Further information on how to file for reimbursement will follow.
- Employees will receive full payment of wages from the employer.
- Employee does not consume WW-rights.
- Application is via employer.
- Agreements are made with the employer whether the employee performs work (at home).
Self-employment (ZZP): income supplement to the social minimum
For self-employed people (ZZP’ers) the Dutch government introduced extra financial support in order to stimulate continuance of their business. Self-employed persons can receive additional income support for a period of three months through an accelerated procedure of max 4 weeks. This concerns an income supplement up to the social minimum, which does not have to be refunded. The arrangement will be executed by municipalities. The amount of the income support depends on the income and the household composition and may amount to a maximum amount of EUR 1,500 (net) per month.
- No partner and equity test is performed.
- No viability study is performed.
- No refund afterwards.
The government will try to arrange this reimbursement within 4 weeks instead of within the regular 13 weeks. In addition, it will be possible to receive an payment in advance. More information will follow.
Entrepreneurs who are hit hard will receive EUR 4.000
Entrepreneurs that are directly hit hard by the COVID-19 measures and see their turnover (almost) completely evaporate, will receive a lump sum of EUR 4.000 as an emergency provision for the next three months. This will be a gift.
This includes the food service industry, the culture sector and the travel industry. But also sectors that will get into trouble due to the 1.5 meter distance requirement, such as beauty salons and hairdressers.
The company must be outside its own home. The exact conditions have yet to be worked out.
Deferral of taxes and reduction of fines
For entrepreneurs that are in trouble due to COVID-19 there is a beneficial measure by the Dutch government. They are easing the extension of payment with respect to taxes. After receiving a specific written request, the Dutch tax authorities will directly grant deferral of payment for Dutch corporate income tax, VAT, personal income tax and wage tax. Individual assessment of the request will take place at a later stage.
If a taxpayer does not pay a tax assessment on time, the taxpayer must pay the tax authorities interest on overdue tax, this rate is currently 4%. As per March 23, 2020 this rate will be reduced from 4% to 0.01% in order to help businesses if they want to request extension from tax payments. Also the tax rate, which you need to pay when the payment term of a tax assessment is over, goes to almost 0 percent.
Entrepreneurs should be able to borrow money more easily
The government is allocating more money for loans that the State guarantees. Initially this for loans for small and medium-sized enterprises (SMEs) and large companies that use the Garantie Ondernemersfinancieringregeling (abbreviated as GO).
This instrument is normally intended for loans between 1,5 and 50 million euros. That ceiling will be temporary increased to a maximum of 150 million euros. The government guarantees for 50 percent of these loans, in order that banks are more inclined to provide the credit to companies. The government is allocating 1.5 billion euros for this.
The guarantee credit for SMEs (BMKB) will be increased considerably. As a result, financiers (especially banks) can extend credit more easily and quickly, which means that more SMEs can borrow more money earlier.
Small entrepreneurs can repay later and receive an interest discount
There are also favorable loan conditions for small entrepreneurs. It concerns the microcredit provider of the government Qredits, intended for small and starting entrepreneurs who already find it difficult to obtain financing anyway.
Other points of attention
In the context of the ‘WW premiedifferentiatie’ that was introduced on January 1st 2020, the low premium must be revised to the high premium if at least 30% more hours were paid in a year than agreed. As much more overtime is now being worked in for example the health care sector, the government will adjust this so that organizations are not inconvenienced by this.
The requirement that employment contracts dating from before January 1st 2020 must be in writing no later than April 1st 2020 in order to be allowed to apply the low unemployment insurance premium had been liberalized. The date has shifted to July 1st, 2020.