News

Although the details of NOW 3 are not yet known, the government announced several amendments. They are listed below, but still have to be formalized and so they are not set in stone yet. The exact terms and conditions of NOW 3 will be announced by 1 October 2020.

1. The NOW will be renewed as of 1 October 2020 with three periods of three months:

• 1 January 2021 – 31 March 2021 (Period 2);
• 1 October – 31 December 2020 (Period 1);
• 1 April 2020 – 30 June 2021 (Period 3).

2. The minimum loss of turnover for being able to claim the NOW measures will be raised from 20% to 30%, as of Period 2.

3. The nine months support term involves a gradual reduction of the compensation rate: from 90% to 70% to 60%. Please note: 10% of the 90% compensation in Period 1 should be used for schooling or job-to-job trajectories.

4. The maximum salary to be compensated for each employee will be reduced in Period 3 to daily wages for each employee once, i.e. maximum (EUR 4,769.-) instead of daily wages twice (EUR 9,538.-).

5. The advance on the subsidy sum amounts to (and stays) 80%.

6. The subsidy reduction applicable under NOW 2 in case of redundancy will be abandoned.

7. The existing conditions of NOW 2 regarding schooling and the prohibition against dividend and bonus payments (in case of a subsidy of over EUR 125,000.-) remain in force.

8. Participation in NOW 3 as of 1 October 2020 is not subject to having participated previously in the NOW. NOW 3, Period 1, can be applied for as of 16 November 2020 (target date UWV (Employee Insurance Agency)) with retroactive effect up to 1 October 2020.