The Cabinet has given a further update on various measures related to the coronavirus.
Compensation for wage costs (NOW)
The portal for the reimbursement of labour costs has not yet been opened. It is expected that the portal will be opened on 6 April next.
In a letter yesterday, the Cabinet fleshed out the conditions for the NOW. Below is a brief summary of the most important new information:
- The NOW applies to employees and employees with a so-called ‘fictitious’ employment relationship. The NOW also applies to flex workers, employees with a zero-hours contract and temporary workers. Payroll and temporary workers can also appeal to the NOW. The uninsured director-major shareholders (dga) do not fall under the NOW, not even if the dga is insured voluntarily;
- the contribution amounts to a maximum of 90% of the (social insurance) salary from current employment. Additional charges and costs such as employer contributions, employee pension contributions and the accrual of holiday allowance are also compensated. This is done by means of a notional surcharge of 30% for the employer’s costs. There is a maximum of EUR 9,538 per employee per month;
- the NOW applies in principle for a period of three months commencing on 1 March 2020;
- the compensation based on the NOW is calculated on the basis of the loss of turnover over a period of three months, starting on March 1th, April 1 or May 1. This turnover is compared with the total turnover for the year 2019 divided by four. The loss of turnover is calculated at group level. For the concept of turnover, a connection is sought with the annual accounts law or the profit declaration for income tax purposes;
- the employer can apply to the UWV for a one-off advance payment of 80% for each wage tax number. Afterwards, the NOW subsidy will be formally determined and a final settlement will be drawn up;
- the advance will be paid in three instalments. The aim is to make the first payment within 2-4 weeks.
For the further conditions of the NOW, we refer to our earlier mailings on this subject.
Temporary extra assistance for entrepreneurs/zzp’ers (TOZO)
The scheme for temporary additional assistance for entrepreneurs/zzp-ers (entrepreneurs without employees) is implemented by municipalities. Pending the final arrangement, it is already possible to apply for an advance payment from the municipality. The temporary measure will apply retroactively as of March 1, 2020. It is expected that the final settlement will take a few more weeks.
The temporary extra assistance for entrepreneurs/zzp’ers can also be claimed by the director/major shareholder (‘dga’) who meets the following conditions:
- the dga spends at least 1,225 hours a year on the company;
- there is full control and financial risk bearing, and
- the dga must truthfully declare and demonstrate that the BV is unable to pay a salary now.
The COVID-19 (TOGS) scheme for meeting the needs of entrepreneurs in affected sectors was opened on 27 March 2020. The TOGS (previously known as the Emergency Desk) is a one-off tax-free gift of EUR 4,000 to companies directly affected by government measures related to the corona crisis. Certain cultural institutions can also apply for the TOGS.
On the basis of an initial demarcation, the following target groups can apply for the scheme:
- eating and drinking establishments (restaurants, cafeterias, cafés, etc.)
- hair and beauty care (hairdressers, pedicures, make-up artists)
- travel agents and tour operators
- driving school holders
- saunas, solariums, swimming pools, fitness centres, sports clubs and sporting events
- certain private cultural institutions such as museums, circuses, theatres and music schools
- certain groups of non-food entrepreneurs, such as shopkeepers.
TOGS is granted per enterprise and not per unit of establishment. A list has been drawn up on the basis of the branch and sector code (SBI); this list will be supplemented and adapted at a later date.
In addition to the above measures, various other measures have been taken. More information can be found in our previous mailings and in the letter dated March 27, 2020 and the letter dated March 31, 2020.