maandag 06 juli 2020

The application period for the extended NOW 2.0 runs from July 6 through August 31, 2020.

The extended NOW 2.0 has a similar system as the previous NOW 1.0:
If the company’s turnover will decrease with at least 20% due to the impact of the Corona virus, the Dutch Social Securities Authorities (UWV) will compensate personnel wages during four months (June, July, August and September 2020) by paying a subsidy.

For the extended NOW 2.0 additional conditions apply. Below you will find a summary of the additional conditions of NOW 2.0:

Subsidy period

  • The subsidy period in the NOW 2.0 is four months and therefore one month longer than NOW 1.0. The subsidy period runs from 1 June 2020 until 30 September 2020.
  • There must be a decline in turnover of 20% or more during an uninterrupted four months period, commencing on 1 June, 1 July or 1 August, where:
    • the turnover in this period must be compared with the average turnover for four months in 2019 (reference turnover); and
    • the turnover period of the NOW 2.0 Subsidy directly follows the granted NOW 1.0 the subsidy.
  • In principle, the turnover decrease must be calculated within the group of companies. NOW 2.0 takes into consideration the existing group on 1 June 2020. E.g. when a group company is sold before 1 June 2020, the turnover of the sold group company will not be taken into consideration in the reference turnover.
  • In case of a business transfer, or a business disposal a different period might be taken into consideration for the account for the reference turnover:
    • When a transfer of an economic entity exists as of 2 January 2019, the reference turnover may be calculated as a four month average, calculated over the period from the first full calendar month after the transfer until 29 February 2020. This is the same when business operations commenced after 1 January 2019.
    • When a business unit or an activity was disposed in the period 2 January 2019 until 1 February 2020, the reference turnover over four months must be calculated on the basis of the average turnover over the period from the first full calendar month after the disposal until February 29, 2020.
  • Employers must encourage employees to apply for career development advice or to participate in training courses, in order to receive the NOW 2.0 subsidy.

Payroll amount

  • NOW 2.0 has increased the extra for additional expenses (e.g. pension contributions, holiday allowance and other employee related expenses) 30% to 40%.
  • The NOW 2.0 subsidy takes into consideration the payroll for March 2020. NOW 2.0 does not take into consideration seasonal influences. Therefore the NOW 2.0 subsidy will not be increased, when the actual payroll in the period 1 June until 30 September 2020 is higher than the payroll in March 2020 (x 4).
  • When an employer files a request for redundancies during the NOW 2.0 subsidy period, the NOW 2.0 subsidy will then be decreased by 100% of the payroll for the employees to be made redundant (NOW 1.0 was a 150% decrease). The payroll will then be adjusted to three months (instead of four) to avoid duplication.
  • The NOW 2.0 subsidy will be decreased with 5%, when during the period of 30 May 2020 until 30 September 2020 a notification is made under the Notification Collective Redundancy Act (Wet Melding Collectief Ontslag). This 5% decrease may lapse, when a Social Plan with the Labour Unions or the Works Council is agreed upon.
  • When the Notification Collective Redundancy Act (Wet Melding Collectief Ontslag) applies, the employer must consult with the Labour Unions and/or the Works Council for a maximum period of four weeks, in order to receive the NOW 2.0 subsidy.

No repurchasing shares, no payment of dividends and bonusses

  • NOW 2.0 does not allow:
    • Repurchasing of shares;
    • Awarding bonuses to the management;
    • Awarding bonuses to the board of directors of the company or the group;
    • Paying dividends to shareholders.
  • Management and board of directors will explained in a broader sense and will include board members, directors and managers who determine the company’s policies.
  • This rule applies to the full year 2020 until the date when the financial statements for 2020 are adopted (in 2021).

Pallas Attorneys-at-Law

As soon as the text of the extended NOW 2.0 is published, we will inform you further about the details and application process.

If you have any questions, or if you need assistance with the application for the Temporary Wage Allowance NOW 2.0, please contact your lawyer with Pallas Attorneys-at-Law, or contact Alain Camonier on +31 20 470 93 64, or by e-mail:

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