Employee insurance schemes and national insurance

If you have a company in the Netherlands, you may have to deal with employee insurance schemes and national insurance, including social insurance against loss of income due, for instance, to unemployment, old age, illness or incapacity for work.

Employee insurance schemes

In the Netherlands, employee insurance schemes are compulsory for every employee and include insurance under the following Acts of Parliament:

• Unemployment Insurance Act (Werkloosheidswet, WW);
• Work and Income (Capacity for Work) Act (Wet werk en inkomen naar arbeidsvermogen, WIA);
• Invalidity Insurance Act (Wet op de arbeidsongeschiktheidsverzekering, WAO);
• Sickness Benefits Act (Ziektewet, ZW).

Employers pay contributions on behalf of employees to the Dutch Tax and Customs Administration (Belastingdienst). The Institute for Employee Benefit Schemes (Uitvoeringsinstituut Werknemersverzekeringen, UWV) arranges payment of employee benefits. With regard to the Work and Income (Capacity for Work) Act you can opt to be a self-insurer.

Self-employed workers without employees
Self-employed workers without employees (zzp’er) are not entitled to make claims on employee insurance schemes. You can, however, voluntarily take out insurance coverage with a private insurer. Starting entrepreneurs may be eligible for a voluntary insurance at the UWV. You cannot take out insurance to cover unemployment via the UWV.

National insurance

National insurance is in principle compulsory for everyone who works or lives permanently in the Netherlands and includes insurance under the following Acts of Parliament:

• General Child Benefit Act (Algemene Kinderbijslagwet, AKW);
• Surviving Dependants Act (Algemene nabestaandenwet, Anw);
• General Old Age Pensions Act (Algemene Ouderdomswet, AOW);
• Exceptional Medical Expenses Act (Algemene Wet Bijzondere Ziektekosten, AWBZ).

You do not pay any contributions under the General Child Benefit Act. The contributions for the remaining national insurances are collected by the Dutch Tax and Customs Administration (Belastingdienst). Employers withhold national insurance contributions from their employees’ wages. The Social Insurance Bank (Sociale Verzekeringsbank, SVB) arranges payment of the benefit.

Self-employed workers without employees
As a self-employed worker without employees (zzp’er) you pay national insurance contributions via your personal income tax return.

Social insurance in the case of temporary work in the Netherlands

If your business is based outside the Netherlands and you temporarily post employees to the Netherlands, they can usually remain insured for social security purposes in your own country. In that case, however, they must apply for an E101/A1 statement. This also applies if you work temporarily in the Netherlands as a self-employed worker.