A Short Survey of Social Security in the Netherlands, Summary as at 1 January 2008

Transcription

1 A Short Survey of Social Security in the Netherlands, Summary as at 1 January 2008 Introduction All persons residing in the Netherlands are required by law to be insured under the National Insurance Schemes. All persons who work in the Netherlands and, consequently, pay income tax, are also insured. All employees are compulsorily insured under the insurance schemes for employees. Persons not compulsorily insured can take out voluntary insurance for certain risks under certain conditions. You can obtain more information about this from the relevant implementing bodies. Apart from National Insurance Schemes, there are also social provisions that supplement insufficient (family) incomes, bringing them up to the minimum guaranteed income level for a particular domestic situation. The social provisions explained in this brochure are the Supplementary Benefits Act, the Wajong (Disablement Assistance Act for Handicapped Young Persons), the Act on Income Provisions for Older or Partially Disabled Unemployed Persons (IOAW), the Act on Income Provisions for Older or Partially Disabled Formerly Self-employed Persons (IOAZ), the Work and Social Assistance Act (WWB) and the Work and Artist Income Act (WWIK). People residing in the Netherlands illegally have no entitlement to national insurance and welfare benefits. Domestic situation: partner/household In all social security legislation, two unmarried persons living together are ranked on a par with married couples. This also applies to two brothers or sisters who live together and to a grandparent and a grandchild who live together. Those people living together with a parent or child are considered to be single. Married persons who are permanently separated are also regarded as single persons, unless of course they live with someone else. A single parent is a person who has a child under the age of 18 as part of his or her household and for whom he or she receives child benefit. To make for easier reading, the words he and she have been avoided where possible. Otherwise, he is taken to refer to she as well.

2 Contributions Contributions as of 1 January 2008 National Insurance Schemes (Contributions remitted to the tax authorities) AOW ANW AWBZ Contribution rate (%) Employer Employee 17,90 1,10 12,15 The contributions are levied - in a single sum together with income tax - on a taxable income from labour and one s own home.. A standard income tax deduction applies to everybody.depending on the situation various tax credits are possible. Contributions as of 1 January 2008 Contribution rate (%) Employee Insurance Schemes (Contributions remitted to the tax authorities) WAO/ WIA-Basic contribution WAO- Uniform contribution WGA Diff. standard contribution WW (General Unemployment Fund-Awf) 1) WW (Sfn) KO Obligatory contribution childcare Employer 5,65 0,15 0,57 4,75 1,02 2) 0,34 7,20 Employee 3,50 1) Awf marginal premium percentage starting from a contribution-free allowance of 60 a day 2) Average sector contribution ZVW WAO/WIA This contribution consists of three separate components: o the basic contribution which is the same for all employers. o the uniform WAO contribution which has been established at 0,15% o the standard contribution determined by the UWV is 0.57% for Employers who have opted to carry the WAO risk and the WGA risk themselves, only pay the basic contribution for WAO/WIA. These employers opted to carry the financial risk of occupational disability (fitness for work) of their employees fully themselves or to take out a (partial) insurance with a private insurer. An employer who (re-)employs occupationally disabled or elderly people may qualify for reduced contributions. The WAO/WIA contribution is paid on a maximum amount of 3.850,404 per month. WW The WW contribution consists of several components: a component which will be paid into the General Unemployment Fund ( Awf ), a component which will be paid into the Sector Fund and a surcharge on the sector contributions as partial compensation for the costs of child care. The WW contribution is paid on a maximum of 3.850,40 per month. Contributions are levied differently for government employees. ZVW In addition to the nominal ZVW premium, all persons required by law to be insured must make an income-related contribution. This income-related ZVW contribution (in principle 7,2% in 2008, though there are exceptions with respect to which a lower percentage applies) is reimbursed by the employer. The employee must, however, pay salaries tax/national Insurance Scheme contributions on this reimbursement. Insured parties who lack an employer (or employer's contribution) must pay an incomerelated contribution of 5,1%. The maximum premium income limit for the Healthcare Insurance Act is ,-a year.

3 General Child Benefit Act (AKW) What is the child benefit? The General Child Benefit Act (AKW) offers people living and working in the Netherlands a financial allowance (child benefit) for the costs of care and maintenance of children up to the age of 18. Parents of children up to the age of 18 are entitled to child benefit. The amount of the child benefit depends on the age of the child. With regard to children born before 1 January 1995 the size of the family is also taken into account. A child counts as one or two children for benefit purposes depending on whether the child lives at home or away from home, any income from labour the child might have and, in certain cases, the size of the parental support contribution. What is the amount of the child benefit? The following amounts per child per quarter are applicable from 1 January 2008 onwards: For children aged Children between 12 and 17 born before 1 January 1995 In families with 1 child 271,70 2 children 305,54 3 children 316,82 4 children 341,61 5 children 356,48 6 children 366,40 The child benefit admounts are adjusted semi-annually for cost-of-living increases. Between April and October 2007, consumer prices have not risen. Therefore, there has been no increase of child benefit as of 1 January Where can you apply for child benefit? The child benefit is paid by the Social Insurance Bank (SVB).As soon as a child is born somewhere, the SVB will send an application set to the home address. People who have recently started to live in the Netherlands, can ask the SVB for an application form

4 General Old Age Pensions Act (AOW) What is the AOW? The AOW provides entitlement to old age pension for people who are aged 65 and over. If you have been living in the Netherlands between your 15th and 65th birthday, you will be entitled to AOW. Entitlement to AOW pension is accumulated at a rate of 2% for each year of insurance. A person who has not lived continuously in the Netherlands between the ages of 15 and 65 and therefore has not been insured continuously, will not receive a full AOW pension. A 2% reduction is made on the full pension for each year of non-insurance. What is the amount of the AOW? Amounts applicable as of 1 January 2008 Gross per month Gross holiday allowance per month Single person 984,86 53,68 Single parent with a child aged up to ,72 69,02 Married / cohabiting partners 673,84 38,35 Married / cohabiting partners with full AOW supplement (partner under 65) Married / cohabiting partners without AOW supplement 1) (partner under 65) 1.347,68 76,70 984,86 53,68 1) If the AOW pension commenced before 1 February 1994 A single person will receive a net pension per month equal to 70% of the net minimum wage per month. A single parent entitled to AOW pension with a child below the age of 18 will receive 90% net of the net minimum wage per month. Married, registered or cohabiting partners are each independently entitled to AOW pension (50% net of the net minimum wage). If your partner has not yet reached the age of 65, there is a right to a supplement. If entitlement to old-age pension commenced before 1 February 1994 and if the partner is not yet 65, the pension will be 70% of the net minimum wage. In this case, the supplement will be a maximum of 30% ( 62,82).With regard to pensions payable after this date, the supplement will be not more than 673,84. The supplement depends on the income from or related to the work of the younger partner (and the latter s number of years insured).with regard to pensions payable as from 1 July 1996, work-related income (benefits) is fully deducted from the supplement. Part of the work-related income (wages, early retirement pension, pre-pension and supplements above the statutory minimum) and with regard to pensions which have become payable before 1 July 1996, also from income in connection with work (for instance WAO,WIA or WW benefit) will not be taken into account: 15% of the minimum wage plus one-third of the surplus. If the gross income is less than 200,25 the supplement will still be paid out in full. If the gross income is above 744,48 (with regard to the 30% supplement) or 1.211,01 (with regard to the 50% supplement) no supplement will be paid. A partial supplement will be awarded for incomes between these two figures. No further supplements will be paid to persons reaching 65 years of age on or after 1 January Apart from the AOW pension, each person entitled to AOW is also entitled to an allowance. In 2008, this AOW allowance is 14,86 per month. Where can you apply for AOW? The AOW pension can be applied for at the Social Insurance Bank (SVB). If you are registered in a municipality in the Netherlands, you will receive a letter about the AOW application six months before you reach the age of 65.

5 General Surviving Relatives Act (ANW) What is the ANW? The General Surviving Relatives Act (ANW) provides for the legal right to surviving relative s pension, half-orphan s and orphan s pensions. The deceased spouse, partner or parent must have been insured under the ANW on the date of death. Usually, any resident in the Netherlands is automatically covered under the ANW. Entitlement to surviving relative s pension exists if the surviving relative: has an unmarried child under the age of 18 who does not belong to another person s household, or is at least 45% occupationally disabled, or was born before 1 January If in your household you are taking care of one or more children up to the age of 18 who have lost one parent, you will be entitled to a half-orphan s pension. The number of children you care for has no effect on the pension. Children who have lost both parents are entitled to an orphan s pension (up to the age of 16, or in the case of invalidity up to the age of 18, and up to the age of 21 if the child is a student). The surviving relative s pension is income-dependent. Work-related income (for instance WAO, WIA or WW benefit) is fully deducted. A part of income from work (wage, profits, early retirement benefit (VUT), pre-pension or benefits above the statutory minimum) will not be taken into account: 50% of the minimum wage plus one-third of the surplus. In other words: if income from employment is 667,50 gross, the surviving relative s pension will still be paid out in full. Should the income be higher, the surviving relative s pension will become lower. The surviving relative s pension is also income-depended for those relatives covered by the transitional arrangement because they were entitled to AWW prior to 1 July From income from work 70% of the gross minimum wage ( 934,50 per month) plus one third of the surplus income will not be taken into account. Should the income be higher, the surviving relative s pension will become lower. For workrelated income, only 70% of the minimum wage is not taken into account. However, the person covered by the transitional arrangement will in any event retain benefit, unrelated to income, of 30% of the gross minimum wage ( 400,50 per month).the remainder of the benefit will be deducted by the income.waz or Wajong benefit is deducted in full from the ANW pension. The surviving relative s pension will terminate upon marriage, entering into a registered partnership or starting cohabitation. If cohabitation ceases within a period of six months, then the surviving relative can fall back on the ANW. Surviving relatives who are cohabiting because they or their partners are in need of care will retain part of their pension: 666, ,20 holiday allowance per month. Surviving relative s pension will in any event cease at the age of 65. What is the amount of this benefit? Amounts applicable as of 1 July 2007 Gross per month Gross holiday allowance per month Surviving relative s pension 1.042,88 64,69 Half-orphan s pension 240,23 18,47 Orphans up to 10 years of age 333,72 20,70 Orphans between the ages of 10 and ,58 31,05 Orphans between the ages of 16 and 211) 667,44 41,40 1) Op grond van de overgangsregeling eventueel tot 27 jaar

6 Allowance If you are eligible for a surviving relative s, orphan s or half-orphan s pension, you will also receive an allowance of 14,86 gross per month on top of this benefit. This amount is meant to compensate for any loss in terms of spending power. Where can you apply for this benefit? If a person registered in the Netherlands dies, the spouse, registered partner or orphan (below the age of 21) will within two weeks receive a letter from the Social Insurance Bank (SVB) about the surviving relative s pension. If the deceased did not live in the Netherlands or if there was no marriage or registered partnership, then you as the surviving relative might nevertheless be entitled to a pension. Contact the SVB for more information.

7 Sickness Benefits Act (ZW) What is the Sickness Benefits Act? The Dutch Civil Code stipulates that employers must continue to pay at least 70% of the sick employees salaries for the first two years of their sick leave. In the first year of sickness this amount should not be less than the applicable minimum income. The employer continues paying salary until the employee has been on sick leave for 104 weeks, but never longer than the duration of the contract. Persons who no longer have an employer can claim sickness benefit under the Sickness Benefits Act. The Sickness BenefitsAct only serves as a safety net for people who have no (longer an) employer and in some special situations. These are for instance the following persons: employees who lost their job in the first two years of their sickness benefit; temporary workers without a permanent contract with the temping agency; persons voluntarily insured; home workers; trainees; unemployed people. In addition, in the following circumstances sickness benefits may be claimed: on sickness prior to or following on from the 16 weeks of maternity benefit to which employees and civil servants are entitled under the Work and Care Act; on the bankruptcy of the employer who continues to pay the salary; on sickness in the first five years after an employee with a no-risk policy has entered employment (with regard to people entitled to Wajong, on sickness for an unlimited period of time); on sickness caused by an organ donation. What is the amount of the sickness benefit? The sickness benefit is 70% of the daily wage (maximum daily wage is 177,03) of the insured and is payable until the employee has been ill for 104 weeks. After having been ill for 104 weeks, there is an assessment as to whether the sick employee is entitled to a wage supplement or a benefit due to full occupational disability (see the information about the WIA). Under certain conditions, sickness benefits can be topped up with a supplement payable under the Supplementary Benefits Act. Each month, 8% of the sickness benefit is reserved for the holiday allowance, which is paid out in May. Where can you apply for this benefit? The Sickness Benefits Act is implemented by the Institute for Employee Benefit Schemes (UWV).

8 Disability Insurance Act (WAO) What is the WAO? The WAO was succeeded on 1 January 2006 by the Work and Income according to Labour Capacity Act (WIA). If you are already on WAO benefit, you remain covered by the WAO. But you can be re-examined according to more stringent criteria.this may have consequences for the level of your benefit. Only people who became ill before 1 January What is the amount of the WAO benefit? The WAO benefit consists of two phases: 1. Loss of income/pay benefit based on the daily wage (a maximum of 177,03). Each month, 8% is reserved for the holiday allowance, which is paid out in May. The duration of the loss of income/pay benefit depends on the recipient s age on the date on which the WAO benefit becomes payable. Age Duration up to the age of 3_ 0 year from 33 to 37 year 0,5 year from 38 to 4_ years 1 year from 43 to 47 years 1,5 years from 48 to 5_ years 2 years from 53 to 57 years 3 years aged 58 6 years 59 years and over Up to the age of The subsequent benefit based on the subsequent daily wage. In principle, subsequent benefit can be drawn until the age of 65. The subsequent daily wage is calculated as follows: for each year above the age of 15 on the date on which the WAO benefit becomes payable, 2% of the difference between the previous wage (a maximum of 177,03 per day ) and the minimum wage, including 8% holiday allowance ( 66,55 per day), is added to this minimum wage. For example, if a person is 45 on the date on which his WAO benefit becomes payable, thus 30 years over the age of 15, this is then (30 x 2% =) 60% of that difference. This amount, added to the minimum wage, is the subsequent daily wage and forms the basis for the subsequent benefit. The amount of the loss of income/pay benefit and the subsequent benefit depends, apart from the (subsequent) daily wage, on the degree of occupational disability. The benefit amounts (as of 1 January 20008) to not more than 75% of the wage based on the (maximum) daily wage. this degree of disability is determined on the basis of what you can still earn through generally accepted work. Generally accepted work in this case refers to all the work that a person, in view of his state of health and capacities, can still carry out. The income from this work is compared to the original wage. Should you, as the occupationally disabled person, be so much in need of help that regular care is necessary, the benefit can be increased to a maximum of 100% of the (subsequent) daily wage. This does not apply if you have been admitted to an institution and the costs involved are met by an insurer. If the WAO benefit, together with other family income, is less than the minimum guaranteed income, you can apply for a supplementary benefit under the Supplementary Benefits Act (TW). Upon the death of a person on WAO benefit, his surviving relatives are entitled to death benefit. Different rules may apply for those already on WAO benefit on 1 August Where can you apply for this benefit? The WAO is implemented by the Institute for Employee Benefit Schemes (UWV).

9 Work and Income according to Labour Capacity Act (WIA) What is the WIA? The WIA provides for employees entitled to occupational disability benefit upon full and permanent occupational disability. Those still able to work partially will receive a supplement to their wage. For employees who became ill on or after 1 January 2004, a qualifying period of 104 weeks applies. Then, they are entitled to benefit under the WIA, provided they are at least 35% occupationally disabled. What is the amount of this benefit? If you are fully and permanently occupationally disabled, you will receive occupational disability benefit. You would have to be at least 80% occupationally disabled with no prospect or only a small chance of recovery. You will then become eligible for benefit on the basis of the Income Provision Scheme for People Fully Occupationally Disabled (IVA) of 75% of the daily wage (maximum daily wage 177,03). If you are between 35% and 80% occupationally disabled, you will be entitled to benefit on the basis of the Return to Work Scheme for the Partially Disabled (WGA). You will receive a wage-related WGA benefit for at least 3 and at most 38 months. Your benefit will amount to 75% of the daily wage during the first two months, and 70% of the daily wage thereafter. If you are working, you will receive a benefit on top of your new wage, which amounts to 75% of the difference between your earnings and the daily wage. Your total income will increase as you work more hours. After the wage-related benefit has ended, the amount you earn is taken into account. In the event that this is at least 50% of the remaining earning capacity, the WGA will supplement the wage by 70% of the difference between the daily wage and the remaining earning capacity or the new wage. If you are not in work after the wage-related benefit has ended, or if you earn less than 50% of the remaining earning capacity, you will receive benefit based on a percentage of the minimum wage. Each month, 8% of the WIA benefit is reserved for the holiday allowance, which is paid out in May. If your family income, including your WIA benefit, is less than the guaranteed minimum income, you may apply for a supplementary benefit as per the Suppementary Benefits Act. Where can you apply for this benefit? The IVA and WGA are implemented by the Institute for Employee Benefit Schemes (UWV).

10 Unemployment Insurance Act (WW) What is the WW? The WW insures employees and civil servants who become unemployed against the financial consequences of unemployment. As of 1 October 2006, a lot has changed in the duration and amount of the benefit. In order to become eligible for WW benefit you must at least: be below the age of 65; lose at least five working hours per week (or for those working less than ten hours per week, at least half the working hours); no longer be entitled to wages for these lost working hours; be available for work; not be on Sickness benefit, WAO benefit upon full occupational disability, or IVA benefit; not be in receipt of WGA benefit (unless you had a job in addition to the WGA benefit and lost that job); meet the requirement of 26 out of 36 weeks : you must have been employed for at least 26 weeks in the 36 weeks before the first day of unemployment. Weeks during which you carried out work as a self-employed person do not count. Weeks which have already been incorporated with regard to a previous benefit do not count. What is the amount of this benefit? In the first two months you will receive 75% of the wage most recently earned (a maximum of 177,03 per day), thereafter 70%. How long will the benefit be payable? A person who only meets the required number of weeks, will receive WW benefit up to a maximum of three months; A person who has received wages for at least 52 days in four of the five calendar years prior to the year in which he has become unemployed also meets the required number of years and will therefore receive benefit for a longer period. The duration of the WW benefit will then be dependent on the employment history. The benefit will be payable for as many months as the number of years in employment (with a maximum of 38 months). The years from the calendar year in which the age of 18 is reached up to and including 1997 apply to everybody as the number of years in employment ( fictitious employment history ); from 1998 onwards, the actual years in employment are taken into account ( actual employment history ). Each month, 8% of the WW benefit is reserved for the holiday allowance, which is paid out in May. If the WW benefit, together with other family income, is less than the minimum guaranteed income, a supplement may be applied for under the Supplementary Benefits Act (TW). Where can you apply for this benefit? You can apply for WW benefit at the Centre for Work and Income (CWI).They will first consider whether work is available. If no work is available, the application for benefits will be forwarded to the Institute for Employee Benefit Schemes (UWV).

11 Self-employed Persons Disablement Benefits Act (WAZ) The WAZ was abolished as of 1 August 2004.The WAZ used to insure self-employed persons, professionally collaborating spouses and professionals such as managing directors/majority shareholders and home care workers, against a loss of income resulting from long-term occupational disability. Only self-employed persons who became occupationally disabled before that date could, after a qualifying period of one year (so by 1 August 2005 at the latest), be eligible to receive WAZ benefit. A self-employed person who was already on WAZ benefit on 1 August 2005 will continue to receive this as long as the following benefit conditions are met: the self-employed person is more than 25% occupationally disabled; the self-employed person is younger than 65; the income at the time of the illness was (partly) earned by working as a selfemployed person. Alternative insurance Self-employed persons may now take out private insurance against the risk of occupational disability. A person who appears to have difficulty in obtaining insurance is eligible for an alternative insurance if he applies for a private insurance within three months after having started up his business. People entitled to WAZ benefit who are declared fully fit for work after a re-examination and who do not have a supplementary private occupational disability insurance can also make use of the alternative insurance if they apply for a private insurance within three months after the WAZ benefit was ended. No medical acceptance or age limit applies to this alternative insurance.

12 Disablement Assistance Act for Handicapped Young Persons (Wajong) What is the Wajong? The Wajong makes provision for a minimum benefit for young handicapped persons. A person is eligible for Wajong benefit if he is living in the Netherlands, is below the age of 65, and is at least 25% occupationally disabled on the date on which he reaches the age of 17, or becomes at least 25% occupationally disabled after this date (but before his 30th birthday) and has been a student for at least six months in the year prior to the occupational disability. What is the amount of this benefit? Wajong benefit is calculated based on the extent of the occupational disability and the basis. The basis for this benefit is the statutory gross minimum (youth) wage per month excluding holiday allowance, divided by 21,75. As of 1 January 2008, the basis is per day for 23 years and older 61,38 22 years 52,17 21 years 44,50 20 years 37,75 19 years 32,23 18 years 27,93 On an occupational disability of the benefit amounts to less than 25% 0% of the basis between 25 and 35% 21% of the basis between 35 and 45% 28% of the basis between 45 and 55% 35% of the basis between 55 and 65% 42% of the basis between 65 and 80% 50,75% of the basis 80% or more 75% of the basis Should a young handicapped person be in need of so much help that regular care is necessary, the benefit can be increased to a maximum of 100% of the basis. This does not apply if the person in question has been admitted to an institution and the costs involved are met by an insurer. In principle, the UWV continues to assess the extent of the occupational disability after having granted the benefit. How often they do this, depends on the situation. Should the earning power increase to such an extent that the person falls into a lower occupational disability class, the benefit will be reduced. Obviously, the reverse is also possible. So with regard to the duration of Wajong benefit it is only possible to say in general that the person keeps the benefit as long as all the conditions are being met. In addition to Wajong benefit, any person on Wajong benefit below the age of 23 will be entitled to an allowance. This allowance is meant to off-set the negative income effects of the Healthcare Insurance Act and the Care Allowance Act.

13 Each month, 8% of the Wajong benefit is reserved for the holiday allowance, which is paid out in May. As of 1 January 2008, the Wajong allowance per month for someone aged 23 years and above 0,00 22 years 1,65 21 years 4,01 20 years 8,13 19 years 13,56 18 years 14,16 If your family income, including your Wajong benefit, is less than the guaranteed minimum income, you may apply for a supplementary benefit as per the Suppementary Benefits Act. Where can you apply for this benefit? The Wajong benefit is implemented by the Institute for Employee Benefit Schemes (UWV).The young handicapped person must report to the UWV within 13 weeks of his 17th birthday or within the first 13 weeks of the qualifying period. Next,Wajong benefit must have been applied for at the UWV within nine months after the applicant became occupationally disabled.the Wajong benefit becomes payable on his 18th birthday. If the recipient moves to a foreign country, the right to the benefit ends.

14 Regulations governing Contributions towards the Upkeep of Disabled Children living at Home (TOG) What is the TOG scheme? The TOG scheme provides for an additional allowance, apart from child benefit, to parents for the upkeep of a disabled child living at home. A person living in the Netherlands and caring for a disabled child at home is eligible for the allowance under the following conditions: the disability of the child is the consequence of one or more disorders of a physical, intellectual or mental nature on the basis of which a positive indication could be given for admission to a AWBZ institution; because of the disability, the child is considerably more dependent on care, guidance and supervision than a healthy child of the same age; the child is aged at least 3 years and not older than 17. From the age of 18 onwards, the child itself can become eligible for benefit under the Disablement Assistance Act for Handicapped Young Persons (Wajong). What is the amount of this benefit? This allowance amounts to 206,24 per quarter as of 1 January This amount is tax-free. And moreover, the allowance does not affect the child benefit. The allowance can be awarded with retrospective effect for up to four quarters. Where can you apply for this benefit? All the TOG applications are dealt with by the Social Insurance Bank in Roermond, Postbus 1244, 6040 KE Roermond; telephone: Application forms are available there. If the applicant is regarded as being entitled to the allowance, the quarterly amount will from then on be transferred automatically. If there is insufficient information in order to award the allowance, a medical examination will take place. However, in most cases this will not be necessary. The process is therefore neither long nor complicated.

15 Supplementary Benefits Act (TW) What is the Supplementary Benefits Act? The Supplementary Benefits Act supplements benefits up to the guaranteed minimum income if the total income of the person entitled to the benefit and his partner, if any, is below this. People entitled to ZW, WW, WAZ, Wajong, WAO, WIA or Wamil benefit. A supplement is sometimes also possible on top of the benefit in connection with pregnancy, delivery, adoption and foster care under the Work and Care Act. What is the amount of the supplementary benefit? The supplementary benefit equals the difference between the guaranteed minimum income and the actual income. Guaranteed minimum Income as of 1 January 2008, gross per day (excluding holiday allowance) Single person aged 23 or over 47,17 Single parent 55,85 Married / cohabiting partners 61,38 For single persons under the age of 23 lower amounts apply. The term income covers all work-related earnings, including most benefits, of claimants and their partners. Assets, such as a private home or savings, are disregarded. For two years at most, part of the income from work (up to a maximum of 15% of the minimum wage) is disregarded when calculating the right to supplementary benefit. Supplementary benefit will never be more than the difference between the daily wage or the basis on which the benefit has been calculated and the compensation for loss of income. In short, this means that the supplementary benefit will only supplement up to the previous income from employment. If you are entitled to supplementary benefit, you will also be entitled to holiday allowance of 8% of this supplementary benefit. This holiday allowance is payable each year in May. There is no entitlement to supplementary benefit: for unmarried persons under 21 living with their parents; for persons living with a partner (either married or not) born after 31 December 1971 and who no longer have any children under the age of twelve living at home. Where can you apply for the supplement? The supplementary benefit must be applied for at the Institute for Employee Benefit Schemes (UWV), preferably together with the benefit itself, but in any event within six weeks. Only the application for a supplement to WW benefit has to be submitted to the Centre for Work and Income (CWI).

16 Act on Income Provisions for Older or Partially Disabled Unemployed Persons (IOAW) What is the IOAW? The IOAW provides an income guarantee to older unemployed persons at the level of the guaranteed minimum income. Unemployed persons aged 50 when they became unemployed and who have received wage-related benefits (plus the subsequent benefit if they were still entitled to them) under the Unemployment Insurance Act (WW); Persons who are partially occupationally disabled and were already in receipt of IOAW benefit on 28 December 2005 and who are not entitled to a supplement under the Supplementary Benefits Act, because they have a partner born after 31 December 1971 and do not have a child at home below the age of twelve years. IOAW benefit links with WW benefit. IOAW benefit supplements the total income of the unemployed and their partner (income from labour, benefits, pensions) bringing it up to the guaranteed minimum income level. Assets, such as a private home or savings, are disregarded. What is the amount of this benefit? Gross monthly IOAW benefit amounts (including 8% holiday allowance) as of 1 January 2008 Single person aged 23 or over 1.107,83 Single person aged ,38 Single person aged ,42 Single parent aged 21 or over 1.311,74 Married/cohabiting partners (both aged 21 or over) 1.427,34 The amounts for single persons under the age of 21 are lower. Where can you apply for this benefit? IOAW benefit must be applied for at the Centre for Work and Income (CWI) in the domicile or region. Married or cohabiting partners have to apply for the benefit jointly. The Social Services will take the decision on the application and will notify the outcome in writing.

17 Act on Income Provisions for Older or Partially Disabled Formerly Selfemployed Persons (IOAZ) What is the IOAZ? The IOAZ provides an income guarantee to older self-employed persons at the level of the guaranteed minimum income. Self-employed persons aged 55 or over who, according to expectations, derive income from a profession or from business activities which is less than the calculated minimum income for selfemployed persons ( ,-) and are thus forced to end their professional or business activities. Claimants only qualify if their average annual income has been below ,- for the three years preceding the claim and is not expected to exceed ,- in the future. A claimant must have been engaged in business or professional activities for at least ten years, or three years with seven years in employment prior to this. Persons who are partially occupationally disabled and were already in receipt of IOAZ benefit on 28 December 2005 and who are not entitled to a supplement under the Supplementary Benefits Act, because they have a partner born after 31 December 1971 and do not have a child at home below the age of twelve years. The benefit becomes payable after the profession or business activities have ceased. The IOAZ benefit supplements the total income of the claimant and his partner (income from labour, benefits, pensions) up to the guaranteed minimum income level. Assets up to a value of ,- are disregarded. The extra assets are regarded as yielding 4% annual returns, which will be deducted from the benefit. An amount of not more than ,- for supplementary pension provisions will not be taken into account with regard to people who are in receipt of IOAZ benefit and have a pension deficit. What is the amount of this benefit? Gross monthly IOAZ benefit amounts (including 8% holiday allowance) as of 1 January 2008 Single person aged 23 or over 1.107,83 Single parent aged 21 or over 1.311,74 Married/cohabiting partners (both aged 21 or over) 1.427,34 Where can you apply for this benefit? IOAZ benefit has to be applied for, before the business or profession is ended, from the Centre for Work and Income (CWI) in the municipality or region. The business activities should cease within one and a half years after the benefit has been applied for. Married or cohabiting partners have to apply for the benefit jointly.

18 Work and Benefits Act (WWB) What is the WWB? The WWB provides a minimum income for all persons residing legally in the Netherlands with insufficient financial resources to meet their essential living costs. You are required to do your utmost to support yourself again and you are obliged to take on generally accepted employment. If you are not successful in getting back to work, the social services, the CWI and/or a reintegration organisation may offer you support in finding work or schooling. If, for instance, you are in receipt of maintenance, benefits or income from paid work, the Act provides a top-up to the social assistance level. Assets above a certain amount are taken into consideration (there is an allowance of ,- for families and 5.325,- for single persons). If the assets are tied up in a house, the assistance will be given in the form of a loan (equitable mortgage) that must be repaid. In that event, there is an asset allowance of not more than ,-. The WWB provides for national standards for persons aged between 18 and 21,between 21 and 65 and for persons aged 65 or over. The Act makes a distinction between: married couples, registered partners or unmarried partners cohabiting; single parents (caring for one or more children under the age of 18); single persons. Each group has a separate standard amount. For married couples and cohabiting partners aged between 21 and 65 this is 100% of the net minimum wage, for single parents aged between 21 and 65 this is 70%, and for single persons aged between 21 and 65 this is 50%. The point of departure for the standard amount for single parents and single persons is that (housing) expenses can be shared with other people. If this is not or is only partly the case, the municipal authorities can award a supplementary allowance of no more than 20% of the net minimum wage. People aged 65 or over who have not built-up a full AOW pension can receive a supplement under the WWB up to the level of the net AOW pension. The level for young persons between the ages of 18 and 21 is based on the child benefit. If these young persons are faced with higher essential living costs, then their parents are responsible for these. If they cannot rely on their parents, they may be able to receive income supplement via the special assistance scheme. The local authorities determine the level of special assistance. What is the amount of this benefit? Assistance levels as of 1 January Per month Holiday allowance Total 2008 (net amouts) Married couples or unmarried cohabiting persons 1.201,05 59, ,28 Single parent 840,74 41,46 882,20 Single person 600,52 29,62 630,14 Maximum supplement for single parents and single persons aged between 21 and ,06-252,06 Below the age of 21 Married couples or unmarried cohabiting persons, both partners under 21 Without children With children Married couples or unmarried cohabiting persons, one partner under 21 Without children 415,03 655,24 20,47 32,32 435,50 687,56 808,04 39,85 847,89 With children 1.048,25 51, ,95 Single person 207,52 10,23 217,75 Single parent 447,73 22,08 469,81

19 65 years old or over Married couples or unmarried cohabiting persons, both partners 1.259,71 62, ,84 aged 65 or over Married couples or unmarried cohabiting persons, both partners 1.259,71 62, ,84 aged 65 or over Single parent 1.132,09 55, ,92 Single person 918,48 45,30 963,78 Staying in a nursing home Single person or single parent 267,44 13,19 280,63 Married couples 415,98 20,52 436,50 With regard to school leavers the social services can reduce the benefit during the first half year after the schooling or training course has ended. People aged 21 or 22 may also receive less benefit if the social services find that full benefit will make employment financially unattractive. People who have an income that is below the assistance level for five years or more, who have few or no assets and no prospects of employment, can receive a longterm supplement amounting to: 486,- for married persons 436,- for single parents and 341,- for single persons. Payment for volunteer work People entitled to social assistance who do voluntary work will sometimes receive remunerations for this. They may keep a limited amount of this without affecting the amount of their benefit. If voluntary work is involved which is regarded by the local authorities as necessary for the reintegration of the person entitled to social assistance, an exemption of a maximum of 150,-per month applies. The maximum per annum is 1.500,-. In all other cases, the threshold of the remuneration to be left exempted is lower: a maximum of 95,-per month with a maximum of 764,-per annum. Healthcare Insurance Act Compensation As of 1 January 2006, everybody aged 18 and above has to pay a nominal premium to the healthcare insurer. With regard to low incomes, the government contributes to the costs of healthcare insurance in the form of a healthcare allowance. The benefit for people in an institution will be increased by a monthly amount with which the premium for the new healthcare insurance can be paid. For single persons this is 54,- per month and for married people 77,-per month. Reintegration bonus A single bonus payable to the person entitled to social assistance in connection with being deployed in work may be given without cutback up to an amount of 2.160,- per calendar year. Municipalities can give persons entitled to social assistance such a bonus with a view to promote positive behaviour aimed at outflow from benefits to paid work. Special assistance benefit If someone has to incur essential, special costs which, according to the local authorities, cannot be paid by him, he can apply to the local authorities for special assistance benefit. This involves for instance removal costs, study expenses, childcare or housing allowance. Income and assets are always taken into account. Municipalities can determine themselves for which costs and under which conditions they provide special national assistance benefit. Where can you apply for this benefit? Assistance benefit has to be applied for at the Centre for Work and Income (CWI). Applications for other assistance benefits, such as special social assistance benefit, must be submitted to the municipal social services or the Social Services Department.

20 Work and Artist Income Act (WWIK) What is the WWIK? The aim of this Act is to support beginner artists in developing a profitable professional practice and to enable already established artists to cope with a temporary drop in income. To be eligible for WWIK benefit, a beginner artist must have completed an officially recognised art course. Established artists must satisfy professional and income-related requirements: the income should have been at least 1.200,- in the year prior to the application, and the artist has to be regarded as a professional artist. In this respect, the central municipality will consult Kunstenaars&Co. The statutory duty of Kunstenaars&Co ( is to conduct examinations to see whether someone is an artist on a professional basis. They only conduct these examinations on the instructions of the social services of municipalities. A progressive income requirement applies to all people entitled to WWIK benefit. In order to remain eligible for benefit the income development of the artist will be reviewed after each 12 months of benefit payments on the basis of a continually increasing requirement. Months of WWIK benefit Gross annual income 12 months 2.800,- 24 months 4.400,- 36 months 6.000,- The required income can be earned both by art and through other work. An artist is entitled to receive WWIK benefits for a maximum of four years within a ten-year period. The WWIK benefit is a gross amount. In net terms, the benefit amounts to approximately 70% of the social assistance level plus the maximum municipal supplementary benefit. Holiday allowance is included in these net amounts. What is the amount of this benefit? Monthly WWIK benefits (including 8% holiday allowance) as of 1 January 2008 Gross Net Single person 694,12 617,54 Single parent 897,18 869,60 Married couples and unmarried cohabiting 1.014,28 995,62

21 The Healthcare Insurance Act (Zvw) and the Exceptional Medical Expenses Act (AWBZ) belong to the policy area of the Ministry of Health,Welfare and Sport (VWS), not to that of the Ministry of Social Affairs and Employment (SZW). To provide a complete summary of Social Security, we have nevertheless included some information about this legislation. For more in-depth information about the Zvw and AWBZ, please contact the Ministry of Health,Welfare and Sport. Healthcare Insurance Act (ZVW) What is the ZVW? The Zvw is a form of insurance against medical expenses.all persons residing in the Netherlands, who have AWBZ insurance by law, are obliged to take out a healthcare insurance, because everyone who requires medical care must be able to receive it. The healthcare insurance consists of a basic package. In addition, it is possible to take out supplementary healthcare insurances on an individual basis. Insurers are required by law to accept anyone who registers for the basic insurance.the composition of the basic insurance package is determined by the government. What is the amount of the contribution? The healthcare insurers determine the amount of the fixed (nominal) healthcare contribution themselves.the monthly contribution can therefore differ per insurer.no contribution is required for children under the age of 18.In addition to the contribution to the healthcare insurer, an income-related contribution is paid to the government.this contribution is automatically withheld from wages/the benefit by the employer or benefits agency, but is also, in large part, reimbursed by them. Depending on your income, you may be eligible for an allowance: the care allowance. This allowance must be applied for from the tax authorities. Information about the care allowance can be found on

22 Exceptional Medical Expenses Act (AWBZ) What is the AWBZ? The AWBZ is a National Insurance Scheme against the risk of exceptional medical expenses for which people cannot be insured on an individual basis. Everyone who resides or works in the Netherlands has AWBZ insurance and is entitled to AWBZ-care reimbursement. AWBZ insurance provides cover against major medical risks not covered by the healthcare insurances. An example in this respect is admittance to an AWBZ institution (such as nursing and care homes), including receipt of the necessary care. An insured party automatically receives AWBZ insurance from his or her healthcare insurer. The administration of AWBZ insurance is delegated by healthcare insurers to regional healthcare offices. What is the amount of the contribution? The AWBZ contribution is income-related and is withheld from wages/the benefit by the employer or benefits agency. In most cases, an (income-related) own contribution is required when use is made of AWBZ care.

23 Your benefit abroad Your benefit will only be paid abroad if you live in an EU/EEA country, the Netherlands Antilles, Aruba or a country with which the Netherlands has entered into a treaty for proper control of the payment of benefits. This relates to AOW, WAO, WIA, WAZ, Anw, the Sickness Benefits Act and child benefit. Therefore, any person moving to a country with which the Netherlands does not have a treaty will lose the right to benefit. There is an exception with regard to the AOW.A person aged 65 does not lose the full right to AOW pension when he moves to a non-contracting State. However, regardless of the actual situation, this person will only become eligible for an AOW pension for married couples without a supplement (a maximum of 50% of the net minimum wage). You can find a current summary of the contracting states on Supplementary Benefits Act You will lose the right to supplementary benefit if you move abroad. Since 5 May 2005, you will also lose the right to supplementary benefit if you move to another country in the EU/EEA or to Switzerland. The following exceptions apply to this rule: On the basis of case law, you will retain your supplementary benefit if you move to: Bosnia-Herzegovina, Brazil, Canada, Chile, Cyprus, Israel, Cape Verde Islands, Croatia, Macedonia, Malta, Morocco, New Zealand, Serbia-Montenegro, Slovenia, Tunisia, United States and South Korea. The Dutch government intends to adjust the existing treaties with these countries. Therefore, the export of the supplementary benefit to these countries will be discontinued in the future. Persons on disablement benefit or sickness benefit who live elsewhere in Europe (European Union, Norway, Liechtenstein, Iceland and Switzerland), will temporarily keep their right to any supplement to their pension based on a transitional scheme. The supplementary benefit will be cut back in three stages. During 2007 these persons remained eligible for the benefit; on 1 January 2008 the benefit was reduced by one third.