NOW 5
As of 28 November 2021, additional coronavirus measures were introduced. In response, a new NOW wage-subsidy scheme (NOW 5) was introduced, so businesses could continue to keep staff employed and pay wages.
NOW 5 (the seventh NOW application period) covers the period from 1 November 2021 to 31 December 2021. NOW 5 is largely identical to NOW 4.
The revenue-loss threshold remains 20%, the subsidy percentage 85%, the flat-rate surcharge 40%, and the reimbursable daily wage remains capped at twice the maximum daily wage. The cap on the maximum reimbursable revenue loss also remains at 80%. The reference month for the wage bill is September 2021. The reference-revenue period is 2019 divided by 6. The bonus and dividend ban continues to apply.
Employers can apply for the final subsidy assessment from 1 June 2022. This may be possible earlier; this will be announced on the UWV website. The assessment portal is open until 22 February 2023.
Differences between NOW 4 and NOW 5
One difference from previous NOW schemes is that, for NOW 5, employers cannot choose which months to use for calculating revenue loss. For every employer, revenue loss is calculated over the months of November and December 2021.
In addition, the wage-bill exemption percentage is raised to 15%.
Finally, start-up employers (those that started between 1 February 2020 and 30 September 2021) can also make use of NOW 5.
Employers that started between 1 February 2020 and 1 July 2021 must use the period from 1 July 2021 to 31 October 2021 as their reference-revenue period.
Employers that started between 1 July 2021 and 30 September 2021 can calculate their reference revenue from the first full calendar month of revenue through 31 October 2021. These employers convert this revenue to a 2-month figure.
Economic dismissal
Since NOW 3, if an employer applies for economic dismissal during the NOW period, an effort obligation applies regarding job-to-job guidance for those employees. For NOW 5, this obligation applies from 27 November 2021.
Reduced working hours scheme
The Reduced Working Hours scheme (WTV) remains open during NOW 5. WTV does not apply to COVID-related applications. Where both apply, an employer’s WTV application will affect the amount of NOW subsidy.
For the letter to parliament of 28 November 2021, click here (in Dutch).
Questions about the above?
Please contact one of Sørensen Advocaten’s employment lawyers. Call: +31 (0)10-2492444
