Chapter I: Financing Chapter I: Financing
Financing principleContributions.
Contributions.
In the Netherlands, there is no specific scheme for long-term care. The risk is mainly covered by the sickness insurance.
Contributions.
Contributions.
In the Netherlands, there is no specific insurance against employment injuries and occupational diseases. These risks are covered by sickness insurance (cash benefits and benefits in kind), insurance against incapacity for work (invalidity) and survivor's insurance.
Contributions.
Public means.
Contributions of insured and employers: Rates and ceilingNo global contribution.
Health Insurance Act (Ziekenfondswet, ZFW):
7. 40% (total)
1. 55% employee
5. 60% employer.
Ceiling: NLG 64,300 (EUR 29,178) per year.
Pensioners pay a contribution of 7.4% of the AOW-benefit (Algemene Ouderdomswet) and 5.4% of eventual wages or supplementary pensions.
Next to the health insurance contributions a flat-rate contribution of annually NLG 397 (EUR 180) (average amount, set by the health insurance per adult).
Exceptional Medical Expenses Act (Algemene wet bijzondere ziektekosten, AWBZ) (insurance against serious risks):
10.25%, paid by all residents.
Ceiling: NLG 48,175 (EUR 21,861) per year.
Included in the contribution rate for cash benefits in case of sickness and maternity.
1)Disablement Benefits Act (Wet op de arbeidsongeschiktheidsverzekering, WAO):
This contribution consists of two separate components:
the basic contribution (basispremie): the same for all employers, namely 6.95%;
the differentiated contribution (gedifferentieerde premie): it differs per company (calculated contribution, either increased or reduced, depending on the number of employees receiving WAO-benefits; minimum contribution 0.77% for small businesses; maximum contribution 2.43% for small and 3.24% for large companies.
An employer may decide to take the risk of WAO himself during the first five years. In that case he pays the basic premium only.
An employer who employs a large number of people who are incapacitated for work may claim remission/reduction.
Ceiling: NLG 310 (EUR 141) per day.
2)Self-employed Persons Disablement Benefits Act (Wet arbeidsongeschiktheidsverzekering zelfstandigen, WAZ):
8. 42% paid by the insured persons.
Ceiling: NLG 84,000 per year (EUR 38,118)
Franchise: NLG 29,000 (EUR 13,160) per year.
3)Disablement Assistance Act for Handicapped Young Persons (Wet arbeidsongeschiktheidsvoorziening jonggehandicapten, Wajong):
no contributions, benefits paid out of general means.
19.3%(total) paid by the employees:
17.9%Old-age scheme (Algemene Ouderdomswet, AOW)
1.4% survivors' scheme (Algemene Nabestaandenwet, Anw)
Ceiling: NLG 48,175 (EUR 21,861) per year.
In the Netherlands, there is no specific insurance against employment injuries and occupational diseases. These risks are covered by sickness insurance (cash benefits and benefits in kind), insurance against incapacity for work (invalidity) and survivor's insurance.
The contributions to unemployment insurance (Werkloosheidswet, WW) consists of two separate components: one is paid into the General Unemployment Fund (Algemeen werkloosheidsfonds, Awf); the other, into the social security agency's Redundancy Payment Fund (Wachtgeldfonds, Wgf).
Awf contribution:
10.1% (total)
6.1% employee
4.0% employer.
Wgf contribution:
0. 95% paid by the employer.
Ceiling for WW-contributions:
The WW contribution is paid over a maximum of NLG 301 (EUR 137) per day with a contribution-free allowance of NLG 108 (EUR 49) per day.
The mentioned Wgf-contribution is an average; it may vary according to branch of industry. For example:
3. 76%agrarian businesses
0. 23% insurance businesses
0. 21%chemical industry
3. 71%cultural industry
Financed by the State.
Other special contributionsNone.
None.
None.
None.
None.
None.
None.
None.
Public authorities' participationGovernment grant for insurance under the Health Insurance Act (ZFW) and under the Exceptional Medical Expenses Act (Algemene wet bijzondere ziektekosten, AWBZ).
No participation of public authorities.
Government grant for insurance under the Health Insurance Act (ZFW) and under the Exceptional Medical Expenses Act (Algemene wet bijzondere ziektekosten, AWBZ).
Annual subsidy to cover expenditure on handicapped young people.
No participation of public authorities.
No specific scheme for employment injuries and occupational diseases.
No participation of public authorities.
Financed by the State.
90% State
10% local authorities.
Financing systems for longterm benefitsCurrent income financing ('pay as you go').
Current income financing ('pay as you go').
No specific scheme for employment injuries and occupational diseases.