04-08-2011
Increase minimum WGA contribution for large employers

It is anticipated that the minimum WGA contribution [Resumption of Work (Partially Disabled Persons) Regulations] for employers with a wage bill in excess of € 747.500 in 2009, will increase substantially with effect from 1 January 2012. The minimum WGA contribution for 2011 for large employers is 0,07%. Rumour has it that this will increase to between 0,20% - 0,25% next year.

Background

The Cabinet has indicated that it wishes to create fair competition between the Employee Insurance Agency (UWV) and the private insurance agencies (self-insurer). The Cabinet intends implementing  a more realistic (read: higher) minimum WGA contribution for large employers.

Note, if you intend becoming a self-insurer for the WGA contribution, applications to this effect must be submitted to the Tax Authorities before 1 October 2011.

Self-insurers do not pay the differentiated  contribution to the UWV (which changes each year) but they take out a private insurance (for a minimum of 3 years) against the risk of the partial disability of their employees. In general the private insurer calculates the contribution at a lower rate than the UWV.

Example: The minimum contribution charged by the UWV in 2011 is 0,07% of your wage bill of € 10 million. The sum charged by the UWV in 2012 will be 0,25% of your wage bill. This is an increase of € 18.000.

Should you have any queries or require more information to make a well-informed choice for 2012, please contact Chris van Wijngaarden (chris.vanwijngaarden@vmwtaxand.nl) or Maarten Krikke (maarten.krikke@vmwtaxand.nl), telephone number +31 20 301 66 33.