FAQ regarding the NOW compensation

On April 23, 2020 by Dutch Umbrella Company

The Dutch government has published a set of measures to cushion the economic impact of Coronavirus. One of them is the temporary Emergency Bridging Measure for Sustained Employment (Noodmaatregel Overbrugging voor behoud van Werkgelegenheid, hereinafter NOW).

Is the NOW scheme meant for my company?

If you are an employer with salaried employees and you have a decrease in turnover of at least 20% in the period between 1 March 2020 and 31 July 2020, you can apply for NOW compensation.

Can I apply for NOW compensation for my own employees with flexible contracts?

The NOW scheme also applies to employees directly employed by your company with whom you have a flexible contract agreement. These are, for example, your own employees with a temporary contract or an on-call contract. As a company with a NOW subsidy, you can bridge this period without having to say goodbye to these employees.

How does the NOW work?

To make use of the NOW, a compensation for the costs of wages (at no more than 90% of the wage sum, depending on the drop in revenue) may be requested from the Employee Insurance Agency (Uitvoeringsinstituut Werknemersverzekeringen, hereinafter UWV) for a period of 3 months, provided when the (anticipated) drop in turnover is at least 20% and that no staff will be made redundant during the subsidy period. The compensation may be renewed by another 3 months (in respect of which other conditions may apply).

How is the amount of the compensation determined?

The compensation is determined in accordance with the drop in turnover:

  • If 100% of the turnover is lost, the compensation will be 90% of an employer’s wage sum.
  • If 50% of the turnover is lost, the compensation will be 45% of an employer’s wage sum.
  • If 25% of the turnover is lost, the compensation will be 22,5% of an employer’s wage sum.

When will I receive compensation?

The UWV will pay an advance of 80% of the compensation. After the 3 months’ period of the wage sum, the actual drop in turnover and final compensation will be determined. On that basis, a correction may be made.

How can I apply for compensation under the NOW?

Employers can apply for compensation via this link.

When can I apply for compensation via the NOW?

Application for compensation is possible from 6 April, compensation under the NOW may be applied for in respect of any loss of turnover as from 1 March 2020.

Can I apply for compensation via the NOW for employees on flexible contracts?

The new scheme also applies to the wage costs for temporary employees and payroll workers. That way, businesses are given a chance to bridge these severe circumstances without having to let go of its employees.

Further questions?

If you have any questions please do not hesitate to contact us.