Changes to unemployment benefit 1 July 2015
Any employee who applies for unemployment benefits after the first of July 2015 will be facing new rules owing to the implementation with effect from said date of the Employment and Security Act of the Netherlands. Nothing will change for employees who already collect employment benefits. The Dutch Minister of Social Affairs and Employment in a letter to the Lower House has elaborated on the changes to the Unemployment Insurance Act of the Netherlands, the consequences were benefit claimants are concerned and the communication of the changes.
The first of July 2015 is the date with effect from which 70% of the benefit claimant’s earnings from work is to be set off against said claimant’s unemployment benefits. It follows that the unemployment benefit will henceforth be fixed on the basis of calendar months rather than calendar weeks. Income set-off is to be effected on the basis of the benefit for the calendar month in question, which implies that the actual payment of the unemployment benefit is to be deferred until the end of the relevant calendar month.
The new regime provides inter alia for a reduced term of unemployment – from 12 months to six months – on expiry of which any work at all is to be regarded as “suitable work”.
Details on the forthcoming changes to the unemployment benefit regime are being provided by the Ministry of Social Affairs and Employment and by UWV, the Netherlands Employee Insurance Agency, via the relevant web sites and by means of radio advertisements. Those who apply for unemployment benefits after the first of July 2015 will be provided with targeted information on how the new system works and on what they themselves will be required to do.