Application - Temporary Wage Allowance

maandag 23 maart 2020

Following the announcement of the new measures on 17 March 2020, we are still awaiting the details of the Temporary Wage Allowance. However, some new details have been announced.

 

  • It was already known that the Temporary Wage Allowance can be requested for three months. It is now clear that it will be possible to request one extension of another three months. It is possible that additional conditions will apply to such extension.
  • The maximum amount of the Temporary Wage Allowance is 90% of the total wage sum and it depends on the decrease of turnover. For example:
    • 100% decrease of turnover leads to compensation of 90% of the total wage sum;
    • 50% decrease of turnover leads to compensation of 45% of the total wage sum;
    • 25% decrease of turnover leads to compensation of 22,5% of the total wage sum;
  • For request of certain magnitude, an auditor’s opinion will be required.

The details, which were already known are as follows:

  • If the company’s turnover/income will decrease with at least 20% due to Corona, the Dutch Social Securities Authorities (UWV) will compensate personnel wages during 3 months by paying a subsidy;
  • The wage subsidy will not cover more than 90% of the wage (and takes into account the turnover decrease);
  • UWV will make advance payments of 80% of the requested wage subsidy;
  • No employment contracts may be terminated by the company during the subsidy term of 3 months (due to business reasons);
  • The government will open a website for the new scheme a.s.a.p.;
  • The compensation will take into account turnover decreases as of 1 March 2020.

We expect many requests once more details are available and the possibility to request the Temporary Wage Allowance is open.

Pallas Attorneys-at-Law

Pallas Attorneys-at-Law takes care of the application for the Temporary Wage Allowance for your company as soon as this possibility is open.

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