The Dutch Temporary Emergency Bridging Measure for Sustained Employment (NOW, Tijdelijke Noodmaatregel Overbrugging voor Werkbehoud) that provides employee salary compensation support is to be extended in an altered form until July 2021. An agreement reached between the government and trade union and management organizations on 27 August extends the NOW provision (NOW3) under new and adjusted salary payment conditions, which will be paid to companies during periods of reduced business activity.
The current 90% salary cost reimbursement rate is to be lowered to 80% as of 01 October, with the 10% differential going towards a career change assistance fund. Between January to March 2021 the applicable reimbursement rate will be lowered to 70% and between April and June 2021 it will be a further reduced to 60%.As a result of the progressively lower reimbursement rates, companies will have an option to gradually reduce their total payroll number (from between 10% and 20% via salary waivers
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