What will change exactly?
As of next year, the Dutch Act Improvement Hybrid Market WGA will come into effect, which means that the own-risk bearer status for the WGA is being extended. Employers must choose between the public insurance at UWV (Dutch social security agency) or the own-risk bearer status for the entire WGA risk (WGA fixed and WGA flex).
Are you own-risk bearer for the WGA-fixed?
If you wish to remain own-risk bearer after 1 January 2017, you will have to send a new warranty statement to the Dutch tax authorities. The current warranty statement only applies to the WGA-fixed. You can download this form on the website of the Dutch tax authorities. The completed form has to be received by the Dutch tax authorities no later than 31 December 2016. If you have not sent the form before that date, your own-risk bearer status will be ended on 1 January 2017 and you will return to public insurance.
If you wish to end the own-risk bearer status, you must notify the Dutch tax authorities of this before 2 October 2016. Please note: an employer who returns to public insurance at UWV from own-risk bearer status has to stay insured at UWV for at least three years.
Do you wish to be own-risk bearer for the entire WGA risk?
Are you currently insured publicly at UWV and you wish to be own-risk bearer for the entire WGA risk as of 1 January 2017? Then you should request this at the Dutch tax authorities before 2 October 2016. For this, you will need a warranty statement from a recognised bank or insurance company as well.
Before you decide to switch to own-risk bearer, it is important to assess your WGA risk. The choice between public or private insurance is very important to your company. Moreover, the own-risk bearer status will entail requirements as far as the execution of the absence and reintegration policy is concerned.
If you switch to own-risk bearer status, the public ‘residual charges’ will remain at UWV. The public ‘residual charges’ are the ongoing WGA charges for employees who receive WGA benefits or who are ill and will receive WGA benefits in the future, after an employer has switched from public insurance at UWV to own-risk bearer. This may yield a financial profit in the short term.
Do you wish to remain insured publicly?
You do not need to take action if you are currently insured at UWV and you do not wish to switch to own-risk bearer.
Want to know more?
Do you have any questions or would you like to know more about own-risk bearer status WGA? Please contact Antonet Lajqi, Consultant HR Services, by email or phone: +31 (0)88 277 13 90. She will be pleased to assist you.