Three extra months for administration low unemployment insurance contribution rate
Employers are given three months extra time to meet the administrative obligations that apply if the low percentage of the unemployment insurance contribution is applied from 1 January 2020. This has been announced by Minister Koolmees.
Low unemployment insurance contribution rate
Starting January 1, 2020, employers may in principle apply the low percentage of unemployment insurance contribution rate for contracts for an indefinite period of time that do not involve on-call workers. With this, the government wants to achieve as many permanent employment contracts as possible are terminated.
The administrative requirements mean that a written contract must show that there is a permanent employment contract. This can be an employment contract or a supplement to this. This must be signed by the employer and employee.
Because many employers are unable to meet this administrative obligation in time for all employees, an additional three months’ delay is possible for this. This means that the low unemployment rate may already be applied for employment contracts for an indefinite period.
Meet requirements no later than 1 April 2020
The requirements must be met by 1 April 2020 at the latest and it must be clear from documents that there was already a permanent employment contract no later than 31 December 2019. If not, the high unemployment rate will still be due retroactively to January 1, 2020.
Do you have questions about the new unemployment insurance premiums or about the WAB? Then feel free to contact us.