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Companies will be reimbursed up to 90 percent of wages, but not for high earners

Companies will be reimbursed up to 90 percent of wages, but not for high earners

Companies will be reimbursed up to 90 percent of wages, but not for high earners

Companies that have lost out on income due to the closure of businesses in the measures to prevent further spread of coronavirus can be compensated up to 90 percent of what they pay to their employees in wages, including holiday pay and pension. This is only for salaries up to 9.538 euros per month.

An emergency bridging measure for the preservation of employment

This new development, known as the emergency bridging measure for the preservation of employment or noodmaatregel werkbehoud (NOW), was defined at this morning’s meeting, presented by the minister of social affairs, Wouter Koolmees.

The temporary financial measure is available to any company that can prove that they have lost at least 20 percent of their usual business turnover over a period of three months. They will be reimbursed depending on the percentage of turnover lost. For instance, companies that have lost 100 percent of their turnover because they were forced to close will receive 90 percent of this subsidy.

To determine the amount of revenue loss, employers must first divide their total revenue from 2019 by four and then compare the outcome with the equivalent quarter in 2020. Minister Koolmees stressed that companies should only apply for this scheme if they deem it completely necessary to continue to pay employees to keep their company afloat. The UWV will make retrospective checks after the payments have been granted and any excess amounts will have to be paid back.

This is not the only scheme for assisting with lost revenue

There are other schemes that people can apply to if their company is not the right fit for this one. Other systems in place include self-employed workers being assisted by their municipalities and companies that have been ordered to close being offered a one-off payment of 4.000 euros by the Ministry of Economic Affairs and Climate.

Rachel Deloughry

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Rachel Deloughry

Rachel is a writer, editor and digital content creator, passionate about the arts, culture and lifestyle.

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