The Dutch government has announced that a watered-down version of the NOW scheme will run through to summer 2021 in an attempt to support businesses following the coronavirus crisis.
The watered-down version of the scheme (NOW 3.0) will mean fewer companies are eligible to apply, and the lucky few who are will receive less money than they had in previous NOW instalments. The cabinet only wants to help companies that are still unable to survive without government support, specifically those in the hospitality and cultural sectors.
Under the current version of the scheme, companies that suffer at 20 percent loss of turnover are eligible to apply for financial support. In NOW 3.0, only companies with a 30 percent loss of turnover will be eligible.
Furthermore, the existing wage bill means the government is paying 90 percent of the salaries for these companies. This will now be progressively reduced to 80, 70, and ultimately 60 percent. Companies will also be given more freedom to make superfluous staff redundant.
NOW 3.0 will be available from October 1, with the last details being finalised and presented by the government next week.
The first emergency package came into effect in March and ran through to June 1, costing the government between 10 and 20 billion euros. NOW 2.0, running from June until the end of September, has cost the government a further 13 billion euros.
The scheme was launched for companies who suddenly had little or no work as a result of the coronavirus pandemic. It meant they were able to continue to pay employees while still keeping the company afloat.