Chapter V: Invalidity Chapter V: Invalidity
Applicable statutory basisDisablement Benefits Act (Wet op de arbeidsongeschiktheidsverzekering, WAO).
Self-employed Persons Disablement Benefits Act (Wet arbeidsongeschiktheidsverzekering zelfstandigen, WAZ).
Disablement Assistance Act for Handicapped Young Persons (Wet arbeidsongeschiktheidsvoorziening jonggehandicapten, Wajong).
Basic principlesThe WAO (Disablement Benefits Act, Wet op de arbeidsongeschiktheidsverzekering) entitles disabled employees under the age of 65 to a benefit if they are still at least 15% unfit for accepted employment after 52 weeks of disability.
The WAZ (Self-employed Persons Disablement Benefits Act, Wet arbeidsongeschiktheidsverzekering zelfstandigen) is intended as an insurance to provide those persons who are not employees in terms of an employee-employer relationship, but who earn an income from work, with a benefit in the case of disablement.
The Wajong (Disablement Assistance Act for Handicapped Young Persons, Wet arbeidsongeschiktheidsvoorziening jonggehandicapten) makes provision for a minimum benefit for young handicapped people.
Field of applicationWAO:
All employees under the age of 65.
WAZ:
All self-employed persons, as well as their spouses who help in the business, professional practitioners and managing director/major shareholders.
Wajong:
Young handicapped people and students.
Exemptions from compulsory insuranceNone.
Risk coveredDefinitionsA person is considered completely or partially incapable of working when, as a result of sickness or infirmity, he/she cannot earn the same as healthy workers with similar training and equivalent skills normally earn at the location where he/she works or most previously worked, or in the vicinity. No distinction is made as to the cause of incapacity (invalidity or employment injury).
ConditionsWAO:15%
WAZ:25%
Wajong:25%
WAO:
From the end of the period for which sickness benefit is paid.
Initial Benefit (loondewingsuitkering): The duration of this benefit depends on the employee's age on the date of commencement of WAO benefit:
Age when quali-Duration of
fying for WAO-the benefit
benefit
up to 320 years
33 - 370.5 year
38 - 421 year
43 - 471.5 year
48 - 522 years
53 - 573 years
586 years
59 and overuntil age of 65
Continuing benefit (vervolguitkering): This benefit may be paid out until the recipient reaches the age of 65.
WAZ:
After 52 weeks of incapacity for work until the age of 65.
Wajong:
After 52 weeks of incapacity for work until the age of 65.
No qualifying conditions.
BenefitsWAO:
Initial benefit: degree of disablement and the employee's last earned wage as well as his age on the date on which the benefit commences.
Continuing benefit: Flat-rate basic amount plus flat-rate supplement depending on age.
WAZ:
The amount of the benefit paid out depends on the degree of invalidity and the basic rate (the amount of lost earnings). In the case of total incapacity for work the maximum basic rate is the minimum wage.
Wajong:
Wajong-benefit depends on the degree of disability and the benefit basis. The basic rate for this benefit is the minimum (youth) wage.
WAO:
Initial benefit:
Daily allowance for incapacity level between:
15 - 25%:14.00% of 100/108 W
25 - 35%:21.00% of 100/108 W
35 - 45%:28.00% of 100/108 W
45 - 55%:35.00% of 100/108 W
55 - 65%:42.00% of 100/108 W
65 - 80%:50.75% of 100/108 W
80% and over:70.00% of 100/108 W
W = daily wages.
Continuing benefit:
For each year that a person is over 15 on the date on which his WAO benefit takes effect, 2% of the difference between his previous wage and the minimum wage is added to the minimum wage. The amount thus obtained is used as the basis in calculating the benefit rate. The benefit percentage depends on the degree of disablement. In addition holiday allowance of 8%, payable in May.
WAZ:
Daily allowance for incapacity level between:
25 - 35%:21.00% of MW
35 - 45%:28.00% of MW
45 - 55%:35.00% of MW
55 - 65%:42.00% of MW
65 - 80%:50.75% of MW
80% and over:70.00% of MW.
MW = the earned income, the maximum being the statutory minimum wage: NLG 108.24 (EUR 49)
Wajong:
Daily allowance for incapacity level between:
25 - 35%:21.00% of MYW
35 - 45%:28.00% of MYW
45 - 55%:35.00% of MYW
55 - 65%:42.00% of MYW
65 - 80%:50.75% of MYW
80% and over:70.00% of MYW.
MYW = the minimum of (youth)wage.
WAO:
Initial benefit:
Net earnings. Ceiling: NLG 81,157.95 (EUR 36,828) per year or NLG 310.95 (EUR 141) per day.
Continuing benefit:
Statutory minimum wage.
WAZ:
See "determining factors".
Wajong:
See "determining factors".
None.
Spouse
Children
No supplements.
WAO:
Initial benefit:
No minimum benefits.
Continuing benefit:
No minimum benefits.
WAZ:
No minimum pension.
Wajong:
No minimum pension.
If invalidity benefits, together with any unemployment benefits, are lower than the social minimum, a supplement can be claimed under the Supplementary Benefits Act (Toeslagenwet, TW) (means tested). The maximum amount of this supplement is 30% of the minimum wage for a couple, 27% for single-parent families and 21% of this wage for single persons. Lower rates apply for single persons under age 23.
WAO:
Initial benefit:
For full disablement 70% of 100/108 of NLG 310.95 (EUR 141) per day.
Continuing benefit:
For full disablement 70% of 100/108 times the statutory minimum wage plus supplement.
WAZ:
For full disablement 70% of the statutory minimum wage.
Wajong:
For full disablement 70% of the statutory minimum (youth) wage.
Death allowance (Overlijdensuitkering):
WAO, WAZ and Wajong:
The death allowance equals one time the gross monthly benefit the deceased was entitled to.
AdjustmentAdjustment on 1 January and 1 July in accordance with the average development of contract-wages.
Accumulation with other social security benefitsWAO, WAZ and Wajong:
Reduction of the invalidity pension where combined with a benefit granted by foreign legislation for the same incapacity for work.
Accumulation with earningsWAO, WAZ and Wajong:
If a beneficiary finds suitable employment the disablement category in which she/he has been classed may change, depending on what he/she earns doing this work. This means that the rate of benefit may be revised.
RehabilitationThe Act governing reintegration (Wet op de (re)integratie arbeidsgehandicapten, REA):
Any employer who employs a disabled worker or who assigns him to a more suitable position within his company can receive a considerable compensation to finance all costs this may involve. It is under this Act also possible to grant a disabled worker facilities which tend to maintain, restore or improve his incapacity for work.
Disablement Provision Act (Wet voorzieningen gehandicapten, WVG):
It is under this Act possible to grant a disabled person facilities which improve his living conditions.
Taxation and social contributionsIn general, benefits are fully liable to taxation.
The income tax structure is progressive. In general, taxation applies if a certain minimum income is exceeded.
WAO:
Social insurance contributions for the Unemployment Benefits Act (Werkloosheidswet, WW), the General Surviving Relatives Act (Algemene Nabestaandenwet, Anw), the Exceptional Medical Expenses Act (Algemene wet bijzondere ziektekosten, AWBZ), the General Old-Age Pensions Act (Algemene Ouderdomswet, AOW) and, in some cases, the Health Insurance Act are deducted from the WAO benefit.
WAZ:
Social insurance contributions for the General Surviving Relatives Act (Algemene Nabestaandenwet, Anw), the Exceptional Medical Expenses Act (Algemene wet bijzondere ziektekosten, AWBZ), the General Old-Age Pensions Act (Algemene Ouderdomswet, AOW) and, in some cases, the Health Insurance Act are deducted from the WAZ benefit. Furthermore from the WAZ benefit a contribution is deducted that equals the WW-contribution.
Wajong:
Social insurance contributions for the General Surviving Relatives Act (Algemene Nabestaandenwet, Anw), the Exceptional Medical Expenses Act (Algemene wet bijzondere ziektekosten, AWBZ), the General Old-Age Pensions Act (Algemene Ouderdomswet, AOW) and, in some cases, the Health Insurance Act are deducted from the Wajong benefit. Furthermore from the Wajong benefit a contribution is deducted that equals the WW-contribution.