Corona-crisis | Measure NOW
Under the NOW, employers who expect a loss in turnover of at least 20% can in relation to that expected loss apply to the Dutch Employee Insurance Agency (Uitvoeringsinstituut Werknemersverzekeringen; UWV) for compensation of the payroll costs up to a maximum of 90% of the payroll. Based on the application, the UWV will make an advance payment of 80% of the compensation. Employers will continue to pay 100% of the salary of the relevant employees. The temporary emergency measure applies, subject to conditions, to both permanent employees and employees with a flexible employment contract. The period can be extended by another three months, but this is likewise subject to conditions. WTV applications that have already been filed but not yet been dealt with will be regarded as filed applications for the purposes of the new measure. Businesses can apply for the compensation for a drop in turnover from March 1. The actual loss in turnover will be determined later on. An auditor’s report is required for applications for large amounts of compensation.
Below we have listed the conditions for the NOW scheme:
- With the application, the employer commits in advance to the obligation not to apply for dismissal on grounds of economic reasons for his employees during the period for which the allowance is received.
- The applicant expects at least a 20% expected loss of turnover;
- The application applies for a period of 3 months, which can be extended once by another 3 months (further conditions may be imposed on the extension)
- The scheme is subject to decreases in turnover from 1 March 2020;
- The amount of the compensation for wage costs depends on the drop in turnover, a maximum of 90% of the wage bill. Below are some examples in which the relationship between the decrease in turnover and the amount of the allowance is elaborated:
- if 100% of the turnover is lost, the allowance amounts to 90% of the salary of an employer;
- if 50% of the turnover is lost, the allowance amounts to 45% of the salary of an employer;
- if 25% of the turnover is lost, the allowance amounts to 22.5% of the employer’s salary.
- On the basis of the application, the UWV will provide an advance of 80% of the expected contribution.
- It is subsequently determined what the actual decline in turnover has been.
- An audit report is required for applications in excess of the amount of the allowance to be determined.
- When the compensation is finally determined, an adjustment will still be made if there has been a decrease in the wage bill.
Do you have any questions? Please contact your regular contact person within Horlings. You can also contact the Horlings corona helpdesk:
Anne-Marie Dijkhorst (for employment law matters)
Joshua Jung (for tax matters)