Insurance obligation with van oers
Insurance in the country you work
In cross-border employment situations within Europe, a series of Regulations (as they are termed) govern where the employee is insured and pays social security contributions. The general principle is that employees are insured in the country where they work. Employees on a temporary foreign posting often remain insured in their country of residence during the initial years. Additional rules for determining the relevant jurisdiction apply if the employee works in multiple countries at the same time. In situations involving employment outside Europe, social security matters depend on the treaties between the countries and on national regulations.
Social Security in the Netherlands
The Netherlands has two main categories for social security. The first is national insurance, for which the insured generally pays his or her own contributions. In employment situations, the contributions are generally withheld and remitted from the employee’s gross wages. The second category is employed persons’ insurance, which is paid by the employer.
National insurance
General Old-Age Pensions Act (Algemene Ouderdomswet, or AOW)
The General Old-Age Pensions Act provides a basic old-age pension upon reaching retirement age. The amount is not linked to the individual’s income: the only factor is the number of years for which the individual was insured under this scheme.
General Surviving Relatives Act (Algemene nabestaandenwet, or Anw)
The General Surviving Relatives Act serves as a catch net or risk insurance that offers temporary benefits for widows, widowers and orphans.
General Long-Term Care Act (Wet langdurige zorg, or Wlz)
The General Long-Term Care Act offers insurance for certain medical costs, particularly those that recur over a protracted period. The AWBZ covers high medical risks that are not covered by the Dutch healthcare insurance system, such as long-term home care or admission to a care home or an institution for disabled care.
Employed persons insurance
Sickness Benefits Act (Ziektewet, or ZW)
By law, Dutch employers are required to continue paying employees who are on sick leave their wages for two years. However, this does not always apply. The Sickness Benefits Act provides insurance for all employees whose employer is not required to continue to pay their wages while on sick leave, for example certain categories of on-call workers/temporary workers without contracts, individuals whose employment contracts end while they are sick and students on work placement.
Unemployment Benefits Act (Werkloosheidswet, or WW)
The Unemployment Benefits Act offers temporary benefits to workers who lose their jobs for reasons that are not attributable to themselves.
Work and Income (Capacity for Work) Act
The WIA provides for a benefit if you haven’t been able to work of have worked less for a period of 2 years due to illness and can therefore earn 65% less of your old wages.
Dutch healthcare insurance
Employed persons who have Dutch medical insurance are required to take out basic healthcare insurance (basisverzekering) with an insurer. The annual premiums depend on the own risk that the insured selects, and generally come to around 1,000 euros per year. On top of this amount, the employer also pays an income-linked contribution. Anyone who fails to take out insurance on time will receive a penalty.
The basic healthcare insurance offers basic cover for medical treatment. Many insurers also offer supplementary cover.
Employees might also be required to pay contributions, or be obliged to arrange insurance, for members of their families who are 18 or older and do not have their own medical insurance.
Benefits: no automatic link to remittance of contributions
Another factor that increases the complexity of the social security regime is that remitting contributions in one country does not always entitle an employee to that country’s benefits. For example, in a European context the unemployment benefits will generally be paid by the country of residence; this is not necessarily the country where the employee paid the contributions. In some situations it is possible to claim benefits in multiple countries. Each country has its own rules for the amounts, the duration and the conditions entitling the recipient to benefits. It is important that you not only understand your obligations, but are also aware of your rights.
