Extension NOW - new conditions

Last week, the cabinet announced in its weekly press conference that the support package will be extended. The package has only changed slightly this second round. For instance, there is one new support package for businesses and new rules apply to the NOW scheme. Read a brief description of the amended support package here:

The NOW 2.0

The new NOW scheme once again applies to companies with at least 20% loss of turnover and will start from 1 June for the duration of three months. Please note the application for the NOW 2.0 can only be submitted to the UWV from 6 July. Furthermore, the following points have been changed:

• The fixed mark-up goes up from 30% to 40%;
• The reference month for the wage bill will be March 2020. March will also be the reference month in the already ongoing NOW scheme, if at least the wage bill in the months of March-May is higher than in January-March (this adjustment is very advantageous for seasonal businesses);
• Companies may not pay bonuses or dividends or buy back their own shares;
• Companies must start supporting their employees in retraining or upskilling;
• The redundancy penalty has been removed. However, when applying, companies must declare that if they wish to apply for business economic redundancy for more than 20 employees, they must first consult with unions.

Temporary Bridging Arrangement for Flexible Employment (TOFA)

The government is also coming up with a support package for flexible workers, namely the TOFA. A flexible worker can receive a fixed allowance of €550 per month for the duration of three months under the TOFA scheme. The flexible worker is eligible if he or she earned at least €400 gross in February, but saw that amount reduced by at least half in April. If the flexible worker earned more than €550 gross in April, he or she will not receive any allowance. In addition, the flexible worker may not use any other income provision. The UWV aims to open the counter 22 June for the duration of three weeks.

Intervention Fixed Charges SME

For example, there will be a new scheme for companies up to 250 employees that includes an allowance of up to €20,000 to pay fixed expenses, but only if the company has at least 30% loss of turnover. They must also belong to a sector that was eligible for €4,000 in the first emergency package.

More information

If you would like more information on the above support packages, please do not hesitate to contact us