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The Dutch government recently announced an extension of the NOW scheme. The NOW scheme has been extended until the third quarter of 2021. In addition, there are also a number of changes for the NOW 3.0 and 4.0. We have listed the most important for you.

NOW 4.0

Employers with more than 20% turnover loss can apply for the Temporary Emergency Bridging Measure for Sustained Employment (NOW) to receive compensation of their employees' wages from October 2020 - September 2021. NOW 1 and NOW 2 are now closed. NOW 3 is divided into three periods. You could apply for the last period of NOW 3.0 until 30 June 2021.

Recently the Dutch government announced an extension of the financial measures of COVID-19. One of the extensions is the NOW scheme.

  1. The NOW scheme will be extended until 30 September 2021. You can soon apply for the NOW, the exact dates are still unkown. To apply for NOW 4, employers must experience a drop in turnover of at least a 20% over a three-month period. The amount of the allowance for wage costs depends on the drop in turnover and amounts to a maximum of 85% of the wage bill of February 2021.

In addition to the extension, there are also a number of changes in the NOW scheme:

  • For NOW 4, another condition is added to the bonus and dividend restriction. When a company applies for the NOW 4, they will be obliged to enter into an agreement with at an employee association in which written agreements are laid down on how bonuses and dividends will be paid out.
  • A third party expert statement is for NOW 1 and 2 required for an advance payment of € 20.000 to €100.000 and for a definitively determined subsidy of € 25.000 to € 125.000. For NOW 3 and 4, this threshold for a third party expert statement will be raised to € 40.000, for both the advance payment and the final subsidy amount.
  • An auditors report is for NOW 1 and 2 required for an advance payment of € 100.000 and for a definitively determined subsidy of € 125.000. For NOW 3 and 4 this threshold will also be raised to
    € 125.000, for both the advance payment and the final subsidy amount.
  • For NOW 1 and 2, the Subsidy Fixed Costs is included in the calculation of the turnover. This is not the case for NOW 3 and 4. The Subsidy Fixed Costs is not included in the calculation of the turnover for the NOW 3 and 4.
  • The maximum reported loss of turnover for the NOW 4, which is used to calculate the amount of the subsidy in the NOW scheme, will be capped at 80%. Even if a company expects more than 80% loss of turnover, or if it has actually suffered more than 80% loss of turnover, the subsidy will be calculated as if there is 80% loss of turnover.

Not sure whether you are entitled to NOW 4.0?

The table below provides an up-to-date overview of all conditions and differences. Based on this table, you can determine which conditions must be met when applying for NOW.

Questions?

If you have questions about the NOW scheme of if you would like guidance when applying for the NOW 4.0, we are happy to assist however we can. Please contact us.