Social security (Netherlands)

Article

May 17, 2022

In the Netherlands, social security is the public system that is intended to guarantee income and/or care for natural persons at the time of retirement, illness, disability, death or unemployment. Social security law, as part of administrative law, regulates the rights and obligations of those who have a role with regard to social security (employers, employees, the unemployed, the disabled, the elderly and the self-employed). Social security in the Netherlands consists of employee insurance, national insurance and social provisions. The employee insurance schemes and the national insurance schemes are collectively referred to as social insurance schemes. The distinction between national insurance and social benefits is somewhat arbitrary. Broadly speaking, no contributions are owed with regard to social provisions, they are financed entirely from the general resources of the State. However, the child benefit (AKW) is formally a national insurance policy, but no premium is due; sometimes the AKW is therefore also counted as part of the social provisions. In addition, some national insurance schemes, including the AOW, are partly financed from the general resources of the State (partial taxation). The distinction between employee insurance schemes and other social security is more concrete than between national insurance schemes and social provisions: employee insurance schemes only apply to employees. Under the WW, there are plans for a "reverse taxation": levying a "premium" that partly goes to the general funds. The term security should not be taken literally. Each regulation only determines what applies as long as it is not determined otherwise. In exceptional cases, this is referred to as a "guarantee". In principle, the "certainty" is then greater.

Employee Insurance

Employee insurance policies in the European part of the Netherlands include: Work and Income according to Capacity for Work Act (WIA: WGA and IVA) with the Disability Insurance Act (WAO) for old cases; Unemployment Insurance Act (WW); and Sickness Benefits Act (ZW). There is a maximum wage over which contributions are levied and benefits are calculated: in January 2020 the maximum daily wage is € 219.28 and € 4,769.34 per month. Employee insurance policies in the Caribbean part of the Netherlands include: Health Insurance Act BES (ZV) BES Cessantia Act Accident Insurance Act BES (OV) The employee insurance policies apply exclusively to employees and persons treated as such. Employee insurance schemes are financed by income-related premiums.

National Insurance

The national insurance schemes apply, among other things, to the majority of residents of the Netherlands. The national insurance schemes are financed by income-related premiums and taxes. The national insurance schemes in the European part of the Netherlands are: General Old Age Pensions Act (AOW) Long-term Care Act (Wlz), before 1 January 2015 of the Exceptional Medical Expenses Act (AWBZ) General Surviving Dependents Act (Anw) General Child Benefit Act (AKW) - sometimes also referred to as social provisions because it is financed entirely from general resources Wajong (with old versions for old cases) National insurance schemes in the Caribbean part of the Netherlands are: General Old Age Insurance (AOV) General Widows and Orphans Insurance (AWW) Health insurance in the Caribbean Netherlands

Social services

The social facilities in the European part of the Netherlands are: Participation Act Income Provision for Older and Partially Disabled Unemployed Employees Act (IOAW) Former Self-Employed Self-Employed Persons (IOAZ) Income Provisions Act Allowances Act (TW) An inflation adjustment is periodically applied. As mentioned, the child benefit (AKW), although formally a national insurance, is sometimes also considered part of the social provisions. A social provision in the Caribbean part of the Netherlands includes: BenefitsThe social vo