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 firstname.lastname@example.org or fill in the contact sheet below to get in touch with us for more details or if you have any questions.
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