Government measures in key jurisdictions 4th edition - Flipbook - Page 137
The Netherlands
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On 28 August 2020, the Dutch government announced that it intends to extend the NOW
scheme from 1 October until 1 July 2021 ("NOW 3.0"). The extension is divided into three
intervals of three months. The amendments in the conditions for NOW 3.0 are as follows:
- The minimum decline in turnover will increase from 20% to 30% from the second period,
starting 1 January 2021;
- The subsidy will be gradually reduced from 80%, to 70%, to 60% over a period of nine months;
- In compensation of the gradual reduction, employers may introduce a simultaneous wage
reduction by 10%, 15% and 20% without affecting the subsidy;
- The discount applied in NOW 2.0 in case of redundancies will lapse; and
- In the third period (April – June 2021), the maximum wage to be reimbursed per employee will
be reduced to a maximum of a single daily wage (instead of two times the daily wage).
The UWV aims to open the next application period on 16 November 2020. An application can be
submitted retroactively for the first period (1 October – 31 December 2020).
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A measure is available for the self-employed registered in the business register before 17 March
2020. The support may take the form of a benefit payment up to a certain maximum
amount (social minimum) and/or a loan for working capital to solve liquidity problems.
No viability test will be applied so that the requests may be processed quickly, i.e. 4 weeks
instead of the regular 13-week period. The level of income support depends on income
and the household composition but is a maximum of approx. EUR 1,500 per month (net). This
income support does not need to be paid back. The accelerated procedure also applies
to loan applications for working capital up to a maximum of EUR 10,157. In addition, a lower
interest rate than the regular rate will be applied on the loans.
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On 20 May 2020, the Dutch government announced that it intends to extend the scheme, which
means that entrepreneurs can apply to their municipality until 1 October 2020. The income
support under the extended scheme can only be granted for the period between 1 June 2020 and
1 October 2020. The difference between the schemes is that the income support under the
extended scheme is subject to a partner income test. If the household income is above the social
minimum, entrepreneurs are not entitled to the income support under the extended scheme. To
apply for a loan of working capital, the applicant must declare that no suspension of payment or
bankruptcy for the applicant, their company or one of their partners (vennoten) has been
applied for or obtained. The amount of working capital granted under the schemes jointly is
capped at EUR 10,157.
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Entrepreneurs can apply to their municipality until 30 September 2020, for a maximum of
three months in the period between 1 June and 31 September 2020. Applications can therefore
also be submitted retroactively. You can find the eligibility criteria here.
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On 28 August 2020, the Dutch government announced that it intends to extend the scheme,
named Tozo 3, until 1 July 2021. The extension is divided into three intervals of three months. As
of 1 October 2020, a maximum savings requirement will be introduced. This entails that
entrepreneurs with more than EUR 46,520 in savings will not qualify for Tozo 3. Further details
about this requirements will be announced shortly. In the period starting on 1 January 2021,
municipalities will support independent entrepreneurs where necessary to prepare for a new
future by providing support for retraining and reorientation. Further details regarding the
application for Tozo 3 will be announced in the near future.
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As of June 2020 the Dutch government launched the Temporary Bridging Scheme for Flexible
Workers (TOFA). The TOFA is designed to support 'flexible workers' who have lost at least 50%
of their income and are not eligible to receive unemployment benefits.
Examples include: employees with a zero-hour contract, temporary workers, and students with
a part-time job.
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Eligible applicants have earned at least EUR 400 in February 2020 and not more than EUR 550 in
April 2020. The entitlement amounts to a one-off allowance of EUR 1,650, being EUR 550 per
month over the course of March, April, and May 2020. Click here to view more information.
Government measures in key jurisdictions