After 1.5 years of crisis, we are entering a new phase. The economy is recovering, and the contact-reducing measures can increasingly be lifted. The cabinet has therefore announced that the generic economic support measures will be terminated. For the Ministry of Social Affairs and Employment, this includes the wage support scheme NOW, the Tozo for self-employed individuals, and the income support TONK. This does not mean that all support will be removed immediately, as uncertainties remain. The cabinet has allocated additional funds with a supplementary social package to provide new perspectives for people who are in uncertainty due to the coronavirus crisis.
The current subsidy period for the NOW for July, August, and September 2021 remains open until September 30. So far, €356 million has been provided in advance for NOW 4. The sectors with the most applications are hospitality and catering and other commercial services. The transport and logistics sector has the highest advance.
The NOW subsidy is initially an advance, based on an estimated loss of turnover by the entrepreneur and the wage sum from the reference month. The subsidy becomes definitive when companies apply for a determination of the NOW subsidy based on the actual turnover and wage sum in the subsidy months. For some companies, this means they will still receive subsidies, while others will have to repay (partially) subsidies. Companies can optionally agree with UWV on a lenient payment arrangement.
In October 2020, the application portal was opened for the subsidy determination of the first NOW period (March, April, and May 2020), and the determination portal for NOW-2 (June, July, August, and September 2020) has been open since March 2021. About half of the entrepreneurs from NOW 1 and 77 percent from NOW 2 have not yet submitted an application for a determination. It is important that entrepreneurs who applied for NOW 1 do this by October 31 at the latest, as the subsidy will be set to zero if UWV does not receive an application.
About forty percent of employers have applied for and processed the determination for the definitive subsidy of NOW 1, and together they have received approximately €2 billion in advance. The determined subsidy amounts to a total of €1.4 billion. 35 percent (€168.9 million) is a back payment and 65 percent (€853 million) is a repayment. This is in line with expectations, as many entrepreneurs applied for subsidies in the first months of the crisis for security. In eighty percent of cases, a lower loss of turnover than expected is the biggest reason for the repayment.
Social Affairs and Employment
Source published: 20 September 21
Less Demand for Support
About 14,000 employers received wage support NOW for the months of July, August, and September 2021. The income support for self-employed individuals Tozo was requested approximately 40,000 times during the same period. Additionally, just over half of the employers have not yet requested a final calculation of the NOW from the first support package. It is important that entrepreneurs do this by October 31 at the latest, as the subsidy will be set to zero if UWV does not receive an application. This is stated in the letters that Minister Koolmees of Social Affairs and Employment sent to the House of Representatives today.