Self-insurer for employee insurance

All workers in the Netherlands must be insured as required pursuant to the Work and Income (Capacity for Work) Act (Wet Werk en Inkomen naar Arbeidsvermogen, WIA). Under the Act, all workers are permitted to claim temporary occupational disability benefit (arbeidsongeschiktheidsuitkering) after they have been ill for two years. As a business, you pay the associated costs.

Paying contributions or becoming a self-insurer

Usually, you pay contributions to the Tax and Customs Administration for the insurance based on the Work and Income (Capacity for Work) Act (WIA). The Institute for Employee Benefit Schemes (UWV) implements the insurance. You may also, however, decide to become a self-insurer (referred to as an 'eigenrisicodrager' or ‘ERD’ in Dutch). In the case of self-insurance, you will have to pay the benefits and the costs of reintegration. You can opt to bear the financial risk entirely yourself, or to take out full or partial insurance with a private insurer.

Return to Work Scheme and Sickness Benefits Act

You can become a self-insurer for the purpose of the Return to Work (Partially Disabled Persons) Scheme (WGA) or for the purpose of the Sickness Benefits Act (ZW). You will not be automatically a self-insurer under the Sickness Benefits Act (ZW) when you are a self-insurer under the Return to Work (Partially Disabled Persons) Scheme (WGA) and vice versa. As a self-insurer under the WGA, you will not pay the differentiated WGA contribution. As a self-insurer under the ZW, you will pay a lower sector-related contribution or a lower contribution towards the government implementation fund (Ufo).

Please note: You are not a self-insurer for the ZW when you continue to pay the wages of your employee who is incapacitated for work due to illness for 2 years. This obligation to continue paying wages applies to all employers.

How to apply

If you wish to be a self-insurer, you need to apply for this at the Tax and Customs Administration. You can have the self-insurer commitment start on 1 January or on 1 July. Your application must have been received 13 weeks before these dates at the latest (therefore, before 2 October or before 1 April).