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Netherlands:
WAO contributions
From 1 January 1998, contributions to the long-term disability scheme (WAO) are to become the responsibility of employers rather than employees under a new scheme, the PEMBA. The new scheme provides for payment of a basic contribution and a variable contribution. The basic contribution is at a fixed rate payable by all employers; the variable rate will be determined according to the number of employees in individual companies who are receiving WAO payments. For 1998, the basic contribution rate has been set at 7.6% of gross pay. The variable contribution will average 0.28%, but will vary according to company circumstances. For a company with less than 15 employees, the contribution will range from 0.22% up to a maximum of 0.84%, whereas larger companies' contributions will range from zero (where the WAO benefits are privately insured) to 1.12%.
Companies are being partly compensated for this change in the structure of WAO contributions. The monthly 'overhelingstoeslag' that larger companies pay to employees in return for changes in sick pay contributions is to be reduced significantly. Smaller companies are to be compensated by way of a reduction in their tax bills.
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