Open for (non)resident companies
We like to stress that the compensation is both open for resident as well non-resident companies as long as there are employees that are covered under Dutch social security for employees. This means only companies with employees under Dutch social security can apply for the compensation.
Expected loss of turnover
Employers who are confronted with at least a 20% expected loss of turnover for a consecutive period of 3 months will receive a compensation of up to 90% of the wage bill. The average loss of turnover in these 3 months must be at least 20%. The actual reason of the expected loss of turnover is not relevant.
The expected loss of turnover must occur in the period 1 March – 31 May 2020, 1 April – 30 June 2020 or 1 May – 31 July 2020. The employer must choose for one of these 3 month periods and then this choice is definite.
The employer must estimate the expected loss of turnover for the chosen period. This will be compared with 25% of the turnover over 2019 (= 3 months). The employer must calculate the loss of turnover and that percentage must be submitted in the application.
The loss of turnover must be calculated on the level of the total group. But for international concerns only the group companies with employees under Dutch social security are relevant (social security wage base).
For example if the total group exist of 4 companies 1, in the Netherlands and 3 abroad, and 2 of these companies have employees who are covered for Dutch social security the loss of turnover is calculated on the level of these 2 companies. Each of these 2 companies must submit its own application, if they have their own registration number for payment of Dutch social contributions.. The turnover decrease is then based on the average of these 2 companies. If one has a decrease of 60 % and one has 40 % decrease of turnover, for both the average of 50% is the parameter to apply.
Formula
The formula to calculate the compensation = A x B x 3 x 1,3 x 0,9
A- Expected loss of turnover
B- Wage bill
The wage bill is the amount on which the social contributions and wage tax are calculated (social security wage base).
A social security wage base above the € 9.538 a month doesn’t qualify for the compensation. There is a 30% increment for additional employers cost, pension contributions etc.
No dismissal of personnel
The UWV requires that in the period 18 March – 31 May 2020 no request will/have be(en) submitted for resignation of employees who are fired because of business economic conditions.
Application
The UWV will prepare a form that can be submitted, this form will be the only method to submit. The application for the emergency measure can be submitted to the UWV till 31 May 2020. The authorities are aiming to have the application available as from 6 April.
There will be an advanced payment of 80% that will be provided by the UWV, based on 3 times the wage bill over January 2020. For the final compensation the UWV will look into the wage bill of the period 1 March – 31 May 2020 ( even if the employer did choose another period for the turn over decrease
UWV can suspend the advanced payment and can reclaim all or part of the compensation granted if there is a serious suspicion that the conditions have not been met.
The UWV must decide within 13 weeks after they received the application, the advanced payment will be in 3 terms. The aim is that the employer receives the first term of the advanced payment end of April.
The employer is required to provide an Auditor’s report is required. the UWV will publish on short notice situations where an Auditor’s report is not required. Within 22 weeks after the application the UWV will determine the definite compensation .
More information
If you have any questions, please do not hesitate to contact one of our specialists.
