Application of the European Code of Social Security by the Netherlands
51th Annual Report: General report 2018
(1-7-2017 - 30-6-2018)
The Government indicates that seafarers who legally reside in the Netherlands are entitled to social security protection for the following branches: medical care, old-age benefit, child benefit, and surviving relatives benefit.
It further declares that seafarers legally residing in the Netherlands and employed by an employer residing in the Netherlands, as well as seafarers legally employed by a foreign employer and working on a ship flying the Dutch flag, are covered for the following additional branches of social security: sickness benefit, unemployment benefit, maternity benefit, and invalidity benefit.
Non Dutch seafaring personnel are also statutory protected (Vereniging Zeerisico 1967). In case of illness seafaring personnel receives 80% of their daily wage for the duration of 52 weeks. In case of a job related illness or a job related accident, seafaring personnel receives 70% of their daily wage for a maximum of 3 years after the initial 52 weeks of illness. Furthermore there exists a compensation for medical treatment in their home country as well as a compensation for survivors.
I GENERAL
No important changes during the report period
A. Administration/ Organization
No important changes during the report period
B. Benefits
See new rates from 1 January 2018 in the relevant chapters in this report
II MEDICAL CARE
No important changes during the report period
III SICKNESS BENEFITS
No important changes during the report period
IV UNEMPLOYMENT BENEFITS
No important changes during the report period
V OLD AGE BENEFITS
The age to qualify for old age benefit rises to 66 years in 2018. The pension age is being gradually increased (per 4 months) to 67 in 2021. As from 2022, it will be linked to life expectancy.
Benefit rates as from 1 January 2018
|
Single pensioner |
€1148.40 gross per month |
€71.42 holiday allowance gross per month |
€24.93 top up gross per month |
|
Married pensioners or living together (amount per person) |
€822.95 gross per month |
€51.01 holiday allowance gross per month |
€24.93 top up gross per month |
VI WORK ACCIDENT AND OCCUPATIONAL DISEASE BENEFITS
Not applicable anymore
VII FAMILY BENEFITS
The amount of the child benefit depends on the age of the child. One will get a higher amount when the child becomes 6 (85%), and again when the child becomes 12 (100%). The benefit is paid per quarter/ every three months.
Double amounts of child benefit (twice the basic rate) can be paid if the child is not living at home because of an illness, a disability or for education and the conditions of the General Child Benefit Act (AKW) are met.
Benefit rates as from 1 January 2018
|
Per child (0-5 years old) |
€201.05 per quarter |
|
Per child (6-12 years old) |
€244.13 per quarter |
|
Per child (12-17 years old) |
€287.21 per quarter |
VIII MATERNITY BENEFTITS
As off 1 April 2018, an employee is entitled to at least 20 weeks of leave (instead of the normal 16 weeks of maternity leave for a single birth), if she is expecting multiple births. This expended leave is equivalent to 100% of the so-called ‘daily wage’ of the female worker, this means the same rate as the regular maternity benefit
Between 15 May 2018 and 30 September 2018, self-employed women can apply for the temporary childbirth compensation. This temporary childbirth compensation is for elf-employed woman who gave birth between 7 May 2005 and 4 June 2008 and did not receive a pregnancy allowance. They may be eligible for €5,600 gross in compensation.
The Social Insurance Institute (UWV- Uitvoeringsinstituut werknemersverzekeringen) is the administrative body responsible for administration of the temporary childbirth compensation, as is the case with the regular maternity benefit.
IX INVALIDITY BENEFITS
No important changes during the report period
X SURVIVORS’ BENEFITS
The benefits paid under the National Survivor Benefits Act (Anw) are financial support from the government for people whose partner has died and for children who are orphaned.
Benefit rates as from 1 January 2018.
|
Single survivor |
€1195.30 gross per month |
€85.47 holiday allowance gross per month |
€16.92 Anw top up gross per month |
|
Orphan (up to age 9) |
€394.00 gross per month |
€27.35 holiday allowance gross per month |
€16.92 Anw top up gross per month |
|
Orphan (10-15 years old) |
€582.54 gross per month |
€41.03 holiday allowance gross per month |
€16.92 Anw top up gross per month |
|
Orphan (16 -20 years old) |
€771.08 gross per month |
€54.70 holiday allowance gross per month |
€16.92 Anw top up gross per month |
XI FINANCING
No major changes during the report period.
The income assessable for social insurance in respect of the levy of employee insurance contributions will be capped at € 54614,=.
Specific requests in Resolution CM/ResCSS(2018)
on the application of the European Code of Social Security and its Protocols
by the Netherlands
Specific request 1 concerning adjustment of benefits to the cost of living,
The Committee asks the Government to supply the statistical data on the adjustment of the old-age benefits over the period of 2011–16, in accordance with Title VI of Article 65 of the Code.
Answer
The statistical data are gathered on the adjustment of the old age benefit and indicate the gross amount per month.
(alleenstaand = single) (gehuwd = married) (verschil tov voorgaande periode = difference to previous period)
Specific request 2 concerning suspension of benefit
The Committee asks to explain in detail the grounds for the suspension or reduction of benefits applied in national law and practice with regard to social security schemes giving effect to Parts II (Medical care), V (Old age), IX (Invalidity) and X (Survivors).
Answer
Benefits related to medical care (Part II), old age (Part V), invalidity (Part IX) and survivors (Part X) will be stopped or suspended immediately of after 1 month if the beneficiary is incarcerated in prison or in a judicial facility.
Specific request 3 concerning Article 71 §2 collective financing of social security schemes
The Committee asks the Government to demonstrate that the total of the insurance contributions borne by the employees protected do not exceed 50 per cent of the total of the financial resources allocated to the protection of employees and their wives and children.
Answer
Employees have to pay salaries tax on their earnings. They pay contributions for old age pension (AOW), surviving dependants (ANW) and exceptional medical expenses (AWBZ). These contributions are withheld by the employer from employees' salaries and remitted to the Tax and Customs Administration.
The contributions rates for the social insurances are:
- 17.90% (old age – AOW)
- 0.10 % (survivors - ANW)
- 9.65% (long term care - AWBZ)
Employers also remit employee insurance contributions. Employers do not withhold these contributions from their employees' salaries but pay them themselves. These contributions pay for the unemployment benefit scheme (WW), the invalidity insurance scheme (WAO) and the work and income (capacity for work) scheme (WIA).
The government sets the contribution levels twice a year, in January and July.
Specific request 4 concerning Part IV (Unemployment benefit)
The Committee asks the Government to explain, in the light of the particularities of the Dutch labour market, whether the correlation of the duration of unemployment benefit with the duration of the qualifying period ensures better protection against unemployment than the standard parameters established in Articles 23 and 24 of the Code, as amended by the Protocol.
Answer
Over the past years the central aim of the Dutch Government with respect to the welfare state has shifted from income protection towards labour participation. Dutch social protection policy is increasingly based on the premise that employment offers the best form of social protection. Currently the unemployment benefit is evolving in a safety net. To be eligible for an unemployment benefit, a person depends on his individual employment history. The longer the individual employment history, the longer the unemployment benefit. However the unemployment benefit is limited in time.
Since 2016 the economic situation in the Netherlands improves and more people are (back) in paid employment. Between May 2016 and May 2017 (reference period for the reporting system of ECSS) a gradual decrease in the unemployment rate is visible. In short: there is a significant decline in the total number in unemployment benefits and a lower influx in unemployment in almost all sectors.
Specific request 5 concerning Article 68 §f (Sanctions for misconduct)
The Committee asks the Government to highlight those provisions in the guidelines to the deciding officers issued by the UWV that would require them, before deciding on the suspension of benefit, to ascertain that the misconduct was wilful and has directly caused the contingency in question, taking into account that the Code does not permit leaving the decision-making on the application of sanctions to the entire discretion of the social security administration.
Answer
If the beneficiary does not agree with a decision of UWV, the beneficiary is entitled to submit a written appeal to the administration itself within a certain period. The UWV is then obliged to reconsider its decision and decide whether the complaint is justified or not. The beneficiary may- again, within a certain period- lodge an appeal against the decision concerning the complaint with the administrative law section of the district court. and only after the appeal procedure the beneficiary may appeal to the Court, Administrative Law Division. If the district courts’ ruling is not satisfying the beneficiary, he can appeal to the Central Appeal Boards within six weeks of the date on which the ruling of the administrative Court is made known.
Specific request 6 concerning Part V (Old-age benefit)
The Committee asks the Government to indicate how effect is given to the provision of Article 28 §b of the Code, as amended by the Protocol, which requires that prescribed classes of employees shall be guaranteed an old-age pension without means tests after 30 years of insurance or 20 years of residence.
Answer
The Dutch statutory old age pension (AOW) is a basic state pension. The old age scheme is an insurance scheme which covers everyone who lives (or works) in the Netherlands, regardless of nationality. For every year that a person is insured, he/she builds up rights to 2% of the full AOW pension. If a person has been insured for the full 50 years preceding the pension age, he/she will get a full AOW pension.
For example: if the AOW pension age is 65 and one month, the old age pension will be based on the insurance record between the ages of 15 and one month and 65 and one month. If the AOW pension age is 66, the old age pension will be based on your insurance record between the ages of 16 and 66.