On Tuesday evening, March 17, the Temporary emergency bridging measure for job retention (NOW) was introduced as a result of the Emergency package for jobs and economy. This wage cost subsidy subsidizes up to 90% of wage costs for three months (with the option of extension).
Conditions NOW
The following conditions are currently known to be eligible for the NOW:
- during the period for which the allowance is received, the employer will not request dismissal for his employees for economic reasons;
- the applicant expects at least a 20% loss of turnover;
- the application is valid for a period of three months, which can be extended once for another three months (further conditions may be imposed on the extension); and
- the scheme pertains to revenue declines from 1 March 2020.
Height NOW
The amount of the allowance for wage costs depends on the decline in turnover and amounts to a maximum of 90% of the wage bill:
- if 100% of the turnover is lost, the allowance amounts to 90% of an employer’s wage bill;
- if 50% of the turnover is lost, the allowance amounts to 45% of the wage bill of an employer;
- if 25% of the turnover is lost, the allowance amounts to 22.5% of the employer’s wage bill.
On the basis of the application, UWV will provide an advance of 80% of the expected allowance. The actual decrease in turnover is determined afterwards. An auditor’s report is required for applications in excess of a size of the allowance to be determined. At the final determination of the allowance, a correction is made if there has been a decrease in the wage bill.
Amount of wage payment to employees
With the NOW, the employer is compensated for the wage costs. The employee retains the right to his (full) wages and the employer receives compensation for this in the form of a subsidy.
NB. The NOW replaces the current reduction in working hours scheme: there is no reduction in working hours and, in connection with this, entitlement to unemployment benefits. Any applications already submitted for a reduction in working hours will be settled under the new wage cost subsidy scheme.
For further information, please contact:
Frouke Vlaskamp, Partner
Milestone Advocaten, Utrecht
e: moc.netacovdaenotselim@pmaksalv
t: +31 30 744 0477
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