When an employee is covered by the Dutch social security system, the employer will be liable to pay certain employed persons’ insurance schemes contributions. Only employees (or deemed employees) can be subject to the employed persons’ insurance schemes contributions.

The employed persons’ insurance schemes are obligatory insurance schemes that aim to insure employees against (certain) financial implications of illness, incapacity for work and unemployment.

The employed persons’ insurance schemes include:

• Sickness Benefits Act (ZW)
• Invalidity Insurance Act (WAO)
• Work and Income Capacity for Work Act (WIA), which includes the full and sustainable incapacity for work income (IVA), and the return to work for partially disabled persons (WGA)
• Unemployment Act (WW)

The contributions/premiums for the employed persons’ insurance schemes are entirely due and paid by the employer (no contribution for the employee, and no withholding from the employee’s salary) but the employer is allowed to recoup a small piece of the premiums due from the employee. This piece relates to part of the so-called differentiated premium for Work Re-employment Fund (so-called 'Whk'). It is up to the employer to decide whether it wants to recoup this part of the premiums from the employee’s salary, but when the employer decides to do so, this will be shown on the employee’s salary slip.

The premiums for the employee insurances consist of:

• WW-Awf premium
• Sector premium
• UFO premium
• Basic WAO / IVA / WGA premium
• Differentiated premium Whk

The employer reports and pays the contributions due to the Tax Administration on a monthly basis.

Go to >   The payroll service package of TAXci

Go to >    Index page - Payroll obligations in the Netherlands