Application of the European Code of Social Security by the Netherlands
52th Annual Report: General report 2019
(1-7-2018 - 30-6-2019)
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 2019 in the relevant chapters in this report
II MEDICAL CARE
Innovations in treatment are added automatically throughout the year, without a need to change entitlements.
In the Health Care system, changes in entitlements are implemented at the beginning of each calendar year. The changes in 2019 are:
- Healthcare programme (lifestyle intervention) aimed at tackling obesity. Additional resources were made available to stimulate these programmes;
- Reimbursement for physical therapy as a treatment for patients with Chronic Obstructive Pulmonary Disease (Stage II of the GOLD classification and higher) has been added. Treatment is now available for patients from the 1st session for patients 18 years and over.
- Reimbursement for medical transport has been augmented with transport in case of consultation, medical examination or checkups connected to the treatment. Reimbursement of transport relating directly to the actual treatment was already available.
- No longer reimbursements for Paracetamol 1000 mg and food supplements, which are also available as over the counter drugs.
Furthermore some changes have been made to co-payments:
- The pharmaceuticals available in public (non-hospital) pharmacies are reimbursed through a system called the Geneesmiddelenvergoedingssysteem (pharmaceutical reimbursement system, GVS). In this system pharmaceuticals are divided into groups of medicines that are therapeutically interchangeable. For each group a reimbursement limit is set in such a way that at least one pharmaceutical is fully reimbursed. An insured person is free to choose the (brand or generic) pharmaceuticals in a group, but if the insured person chooses a more expensive pharmaceutical, he or she must pay the difference between the reimbursement limit and the set price as an out-of-pocket payment.
As of the first of January 2019, these out-of-pocket payments are maximized to the amount of 250 euro per calendar year. In 2021 the need for continuation of this will be assessed.
- The compulsory deductible of in total 385 euro per calendar year will remain unchanged, starting in 2018 until 2021. In 2022 the compulsory deductible will again be coupled with the rise in health care expenditure. The deductible is applicable for most types of basic healthcare, such as hospital treatments, medication and mental healthcare. However, some healthcare types are not subject to deductibles, such as visiting a General Practitioner and maternity care.
III SICKNESS BENEFITS
No important changes during the report period and no changes foreseen.
IV UNEMPLOYMENT BENEFITS
As of 1 April 2019 the maximum duration of an earnings related unemployment benefit is 24 months.
No important changes during the report period. No changes foreseen.
V OLD AGE BENEFITS
a) Changes made during the reference period
As of 1 January 2019 the statutory pension age has increased by four months. The age to qualify for old age benefit rises to 66 years and 4 months in 2019. The pension age is being gradually increased (per 4 months) to 67 in 2021. As from 2022, it will be linked to life expectancy.
There are no policy changes during the report period.
Benefit rates as from 1 January 2019.
|
Single pensioner |
€1190.58 gross per month |
€72.42 holiday allowance gross per month |
€25.23 top up gross per month |
|
Married pensioners or living together (amount per person) |
€809.81 gross per month |
€51.75 holiday allowance gross per month |
€25.23 top up gross per month |
b) Changes decided for the following year
In June 2019, the government and social partners have concluded an agreement with respect to pensions (first and second pillar), however the agreement has not been ratified yet by all parties. Important part of the agreement is that the statutory pension age will rise up to 67 years less quickly. The current link between statutory old age pension and life expectancy will be moderated. Currently this link is 100% ( when life expectancy rises with 12 months, the statutory old age pension will also rises with 12 months). From 2024 onwards, this link is 66% ( when life expectancy rises with 12 months, the statutory old age pension rises with only 8 months).
c) Research (including evaluation), completed
The researches with respect to ‘Lifestyle’, ‘Old age pension’ and ‘Partner allowance’ are not yet completed.
VI WORK ACCIDENT AND OCCUPATIONAL DISEASE BENEFITS
Not applicable anymore
VII FAMILY BENEFITS
a) Changes made during the reference period
In the Netherlands, there exists one universal child benefit under the General Child Benefit Act (AKW) and one targeted additional child benefit (WKB).
AKW is a non-contributory benefit, not means-tested and not taxable. WKB is non-contributory, means-tested and not taxable.
AKW
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 2019. Every 6 months the child benefit amounts can be adjusted to the price developments.
|
Per child (0-5 years old) |
€219,97 per quarter |
|
Per child (6-12 years old) |
€267.10 per quarter |
|
Per child (12-17 years old) |
€314.24 per quarter |
WKB
The additional child benefit WKB can be received by the parents for children up to the age of 18, if their income and their assets (capital) do not exceed a certain ceiling. The amount depends on the income of the parent(s), the number of children and the age of children. Parents whose household income does not exceed € 20,941 receive the maximum amount of WKB. The benefit amount decreases as income rises.
The maximum yearly amounts of the WKB are for 1 child: €1,166. If there are 2 children: €2,155. If there are 3 children: €2,447. An additional amount is paid for the 4th child and further, this is fixed at €292.
The annual amounts are increased with €239 for children aged 15-15 years and €427 for children aged 16-17 years.
Single parents receive an additional benefit up to a maximum of €3,139 per year.
b) Changes decided for the following year
As from 1 January 2020 the maximum amount of an additional child benefit WKB that couples receive will be increased and differ from single parents. The exact amounts are not yet known.
It has been decided to structurally increase the total budget of the General Child Benefit Act (AKW) which results in an increase of approximately € 22 per quarter per beneficiary. This increase is allocated by age category of the child. The annual amount will be increased with approximately €123 a year.
c) Research (including evaluation), completed
In December 2018 a Policy review for ‘Child allowances’ has been published, as well as an evaluation report concerning ‘Child Benefit Reform Act 2015’.
VIII MATERNITY BENEFTITS
No important changes during the report period. No changes foreseen.
IX INVALIDITY BENEFITS
No important changes during the report period. No changes foreseen.
X SURVIVORS’ BENEFITS
a) Changes made during the reference period
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 2019.
|
Single survivor |
€1204.39 gross per month |
€86.94 holiday allowance gross per month |
€17.12 Anw top up gross per month |
|
Orphan (up to age 9) |
€385.00 gross per month |
€27.82 holiday allowance gross per month |
€17.12 Anw top up gross per month |
|
Orphan (10-15 years old) |
€578.11 gross per month |
€41.73 holiday allowance gross per month |
€17.12 Anw top up gross per month |
|
Orphan (16 -20 years old) |
€770.81 gross per month |
€55.64 holiday allowance gross per month |
€17.12 Anw top up gross per month |
b) Research (including evaluation), completed
Two researches will take place in 2019: One research deals with ‘Client experiences’ and the other research deals with ‘Labour market- and income position of survivors’.
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 €34,300=.
The minimum wage in January 2019 is €1,615 per month excluding the 8% holiday bonus.
Specific requests in Resolution CM/ResCSS(2019)
on the application of the European Code of Social Security and its Protocols
by the Netherlands
Specific Request 1: Part IV Unemployment Benefit
The Committee requests the government to provide a detailed explanation of how the notion of “suitable employment” is defined in the national legislation and used by the employment service in practice when making an offer of employment to jobseekers and applying sanctions in case such offer is refused by them as unsuitable.
Answer
The ‘Decision suitable employment in relation to the Unemployment Insurance Act’ in force since 1 July 2015, is the legal basis to determine whether work is considered suitable employment for the beneficiary concerned.
Criteria for suitable employment are:
1) Previous work experience, education/ training and skills;
2) Prior earnings – 70% of the previous wage;
3) A maximum of 2 hours distance between the available work to the residence.
The definition of suitable employment changes as the duration of the person’s unemployment grows. In that case, the legislation requires to expand the job search.
In case of unemployment for a period up to 6 months, the beneficiary may look for work that is related to his education/ training and previous work experience.
Any kind of work, irrespective of education and training requirements and wage level, is considered suitable under the Unemployment Insurance Act for all persons who are still unemployed after 6 months.
Specific Request 2: Part IV Unemployment Benefit
The Committee observes that to become entitled to a minimum duration benefit of 21 weeks, as established by the Protocol, the person concerned needs to fulfil a qualifying period of at least two and a half years of employment, which is manifestly excessive in terms of article 23 of the Code.
The Committee requests the Government to review compliance of the national legislation with these requirements of the Code and the Protocol and to indicate legislative measures it intends to take in this respect.
Answer
The Netherlands recognises that the national legislation is not in compliance with the requirements of the Code and the Protocol.
At the moment we deliberate on how to give follow-up to the observations of the Committee. We take into account that the measures taken at national level (increase of the qualifying period of employment) were supported by Parliament and that the Netherlands does meet the requirements of the revised Code which however is not in force due to a lack of ratifications.
Specific Request 3: Part V Old age Pension
The Committee recalls that Article 26, 2 of the Code allows the pension age of 65 years to be exceeded if the number of residents having attained the increased age is not less than 10 % of the number of residents under that age but over 15 years of age.
Fixing a pensionable age higher than 65 needs to take into account the demographic, economic and social criteria, which stall be demonstrated statistically.
The Committee requests the Government to justify the increase of the pensionable age beyond 65 years.
Answer
The life expectancy of the population in the Netherlands continues to increase. Public facilities and provisions cannot be sustained in the future, without certain adjustments being made.
|
2019 |
2030 |
2050 |
|
|
0- 20 years |
3792844 |
3766335 |
3951294 |
|
20-65 years |
10177500 |
10030071 |
9804039 |
|
65 years- up |
3314793 |
4233950 |
4769385 |
|
total |
17285137 |
18030355 |
18524719 |
The percentage of over-65s in the population is set to rise quickly in the coming years. At the moment this age group accounts for 15 percent of the population. In 2040 this will grow to an expected 26 percent. This increase will have consequences for pension spending and the costs of the state old age pension. At the moment there are three people in working ages (20-64 years) for every pensioner. In 2040 this will have dropped to just two people in the age bracket of 20-64 years for every pensioner.
Specific Request 4: Part V Old age Pension
The Committee recalls that decisions to increase the pensionable age should not only based on the physical ability of older workers but also with due regard to their employability.
The Committee requests the Government to supply statistics on the participation and unemployment rate for people aged 65-67 years and belonging to the SOC Sub-Major Group 91.
Answer
The employment of people over the age of 55 has increased substantially over the past two decades because of the aging of society and because of the increasing participation rate of elderly persons.
The net labour participation of people with the lowest education level and aged 65 – 69 years (male and female) is 13,7% in the first quarter of 2019 (Source: CBS (Statistics Netherlands) Statline)
|
Net labour participation rate % |
Men 1 quarter 2019 |
Men 1 quarter 2018 |
Women 1 quarter 2019 |
Women 1 quarter 2018 |
|
Total (15- 75 years and not differentiated to education levels) |
72, 8 |
71,9 |
63,8 |
62,1 |
|
15-25 years |
63,4 |
61,2 |
64,4 |
63,6 |
|
25-35 years |
87,7 |
87,6 |
82,9 |
80,3 |
|
35-45 years |
91,2 |
90,3 |
80,9 |
78,8 |
|
45-55 years |
88,9 |
88,9 |
78,9 |
77,6 |
|
55-65 years |
78,0 |
75,4 |
60,7 |
57,6 |
|
65-75 years |
18,5 |
17,2 |
8,0 |
6,8 |
Source: CBS (Statistics Netherlands) Statline
Specific Request 5: Sanctions for misconduct
The Committee requests the Government to take legislative measures to amend section 24, 2 of the Unemployment Insurance Act where it refers to section 678(K) and (L) of Book 7 of the Civil Code, so as to ensure that sanctions are imposed only when the unemployment occurred due to wilful misconduct.
Answer
The Centrale Raad van Beroep (CRvB- Administrative High Court in the Netherlands) has recently ruled (7 November 2018) on section 24 (2) of the Unemployment Insurance Act. A judgment given by the Administrative High Court is final.
Section 24(2) of the Unemployment Insurance Act states that an individual who is discharged from employment for reasons that are considered to be wilful misconduct connected to work, is not eligible to receive a benefit. The employer must show that the employees actions rose to the level of wilful misconduct.
The CRvB has provided definitive guidance in declining an individual’s eligibility in specific situations involving a discharge for wilful misconduct. The following criteria need to be taken into consideration by UWV in determining wilful misconduct.
- Attitude of employee and seriousness of rule violation;
- Nature of work and the employment history between employee and employer;
- Personal situation of the employee, such as age and the consequences of termination of the employment contract;
- Previous work performance.
With these guidelines of the Highest Administrative Court, there is no need to amend relevant legislation.
Specific Request 6 Part XIII Suspension of benefit:
The Committee requests to indicate whether national legislation or practice permits to reduce the volume of medical care or the reimbursement of the expenses borne by the person concerned in case the contingency has been caused by a criminal offence or wilful misconduct of this person or where the person neglected to make use of the medical or rehabilitation services provided, as allowed in paragraphs (e ), (f ) and (g ) of article 68 of the Code.
Answer
In Dutch legislation, the starting point is that there is no obligation for the insured person to inform the insurer if or when medical treatment is required. Dutch legislation does not treat cases of wilful misconduct or recklessness differently.
Based on the social character of health care insurance, health care is in principle provided and reimbursed, even in cases in which the insured person might have been able to avoid certain behaviour or misconduct.
Specific Request 7 Part XIII Suspension of benefit:
The Committee requests to explain whether any portion of the benefit in excess of the value of the maintenance of the beneficiary at public expense in prison or other facility is granted to the dependants of the beneficiary, in compliance with article 68, b of the Code.
Answer
Prisoners are not entitled to social security benefits (old age, invalidity, survivors, unemployment and social assistance). Not even when persons have contributed to them. They are kept at the public expense of the State and therefore do not need a benefit. It applies irrespective of whether the prisoners are imprisoned in the Netherlands or anywhere else in the world. On completion of their sentence, they are entitled to their full social security benefits, if they still meet the requirements.
The dependents of the beneficiary are not entitled at any portion of the benefits, since benefits are individual accrued rights. In case the dependants have no income of their own, they are able to apply and entitled to social assistance in their own.
Specific Request 8 Part XIII Common provisions:
The Committee points out that article 70, 2 of the Code requires that the total of the insurance contributions borne by the employees protected not exceed 50 % of the total of the financial resources allocated to the protection of employees and their wives and children.
The Committee requests the Government to present detailed statistics on the share of the social insurance contributions and social taxes paid by employees and by employers in the overall cost of the national social insurance system protecting 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 spouses and children (Anw) and long term medical care expenses (Wlz). 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 % (surviving spouses and children - Anw)
- 9.65% (long term care - Wlz)
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 sickness benefit scheme (ZW), the invalidity insurance scheme and the work and income (capacity for work) scheme (WIA and WAO). Employers are allowed to withhold up to 50% of one of the contributions for the WIA scheme from the salary of the employee. The part that employers can withhold from the salary of the employee is at most 0,375% from the maximum wage over which contributions are paid (€55.927) (2019).
The government sets the contribution levels once a year.