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NOW 3.2: Compensation of Wages in the Netherlands

In previous articles we already mentioned that in the Netherlands it is possible for businesses to apply for partial compensation of wages called NOW-ruling, during the COVID19-pandemic. During the previous rounds, companies could apply for NOW 1.0, NOW 2.0 and NOW 3.1. In the meantime the NOW 3.2 has opened up. Please find below the conditions related to NOW 3.2.

Wage period

NOW 3.2: concerns the wage period: January, February, March 2021 and the turnover period over the 3 consecutive months between 1 January 2021 and 31 May 2021. If your company has applied for NOW 3.1, the NOW 3.2 period for the calculation of the loss of turnover should be consecutive to the prior NOW 3.1 period. So if your NOW 3.1 period is November 2020, December 2020, January 2021, the NOW 3.2 period for the calculation of the loss of turnover will be February, March and April 2021. Over that period the loss of turnover should be calculated.

NOW 3.2 Application deadlines

You can apply for the NOW 3.2 between 15 February and 14 March 2021.

Maximum payment

Because of the longer lock down period, the Dutch government has amended the maximum reimbursement for NOW 3.2.

Under NOW 3.2 the loss of turnover should be at least 20% and the maximum reimbursement is 85% of the wage in the three-months period. The wage is maximized to the amount of € 9,718 gross per employee per month. By “wage” means a wage that is calculated for social securities in the Netherlands. If the social securities are not paid in the Netherlands (for example by means of the so called A1 certificate), the wage will not be calculated for the NOW 3.2 reimbursement.

During the month January, February and March 2021 the wage, compared to the wage paid in June 2020 should be almost the same. A maximum deviation of 10% is allowed.

Accounting statement – declaration from an expert

After filing the preliminary application companies will be required to file a final application based on the final figures. If the preliminary NOW 3.2 allowance is less than EUR 20.000 and the final allowance is not over EUR 25.000, no accounting statement nor a declaration from an expert will be required. Upon the request from the UWV the company should provide figures related to the final calculations of loss of turnover.

If the preliminary NOW 3.2 allowance is more than EUR 20.000 and the final allowance is over EUR 25.000 a declaration from an expert is required. This declaration can be provided by an accountant or a tax advisor.

If the preliminary NOW 3.2 allowance is more than EUR 100.000 and the final allowance is over EUR 125.000 an accounting statement will be required.

Foreign companies

Foreign companies with a Dutch wage tax number and an IBAN bank account (bank account in one of the SEPA countries: European Union, Iceland, Liechtenstein, Norway and Switzerland) can apply for this regulation as well.

If you need any help related to filing NOW 3.2 application or if you want to know how the loss of turnover should be calculated, please do not hesitate to contact us.

Crowe Peak
Olympisch Stadion 24-28 1076 DE Amsterdam, The Netherlands
+3188 2055 000 contact@crowe-peak.nl