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.