Due to the COVID-19 emergency, the Dutch government has introduced the so called “NOW-regulation”. The regulation primarily focuses on labour costs for the companies but comes with some restrictions. In this post, the NOW-regulation and how it affects the payroll services in the Netherlands are summarised.
The NOW-regulation works as following:
- You need to have a minimum of 20% loss of revenue for 3 months compared to the last year.
- From the 1st of March, you can retroactively receive a reimbursement of up to 90% of the wage bill. The maximum compensation is €9 538 per month and employee.
- The compensation calculation will be based on your loss of revenue. Meaning that you will receive a maximum of 90% if you lose 100% of your revenue, a 50% loss of revenue grants you 45% compensation of the labour costs, and so on.
The following conditions need to be followed:
- You have to maintain the normal salary for your employees.
- You can not apply for discharge of your employees based on economic grounds, during the period for which you receive compensation.
How to apply?
- From Monday the 6th of April until Sunday the 31st of May 2020 companies can apply for compensation via the NOW-regulation at UMW (“Uitvoeringsinstituut Werknemersverzekeringen”)
- When UMW approves the application, 80% of the compensation is paid in advance.
- This payment will be completed within 2 to 4 weeks.
- After the duration of the loss in turnover, a new calculation will take place;
- If the company lost even more than expected, then this will be compensated for as well.
- If the contrary happens, then the company will have to repay the difference to the state.
Please visit the Rijksoverheid website for more detailed information on the NOW-regulation.
Internago offers payroll services in the Netherlands as well as in many European countries. Please send an email to email@example.com or fill in the contact sheet below to get in touch with us for more details or if you have any questions.
Visit our website if you want to know more on how we can support you and your company – www.internago.com