fiscal info corporations

The premiums due for the Dutch employee insurances

Last updated: 19-11-2020

The premiums for the employee insurance schemes are stated as a percentage of wages for social insurance purposes.

The premiums are capped, in the sense that the premiums due per employee, per year cannot exceed the stated percentages of the co-called maximum premium wage (“maximum premieloon”).

Disability  (WAO / WIA):

The basic WAO /WIA  premium is the same for all employers.

The total basic WAO/ WIA premium including Day-Care surcharge is 6.96% in 2019. For 2020 the premium is 6.77% + 0.5% Day-care surcharge.

Unemployement (WW-Awf):

The WW-Awf premium for 2019 is 3.60%.

For 2020 the Awf-Low is 2.94% and the Awf-high 7.94%. 

Disability and Illness (Whk, WGA and ZW):

n 2020 the differentiated premium Whk consists of 3 parts:

  • the WGA for fixed employments, and
  • the WGA for flexible employments, and
  • the premium component Illness Act (ZW) for flexible employment (ZW-flex)

The premiums can vary depending on the sector allocation of the company, the size of the company, and certain other variables.

The level of the sector premiums depends on the unemployment risk in the business or professional sector in which the employee works. For this purposes every business in the Netherlands is to be allocated to a certain business sector.

The authorities will notify the employer about the so-called sector connection (“sector aansluiting”) on the basis of information at the disposal of the tax authorities. This allocation is subject to appeal by the employer when not correct, and a new connection can be requested by the employer when there is a change in circumstances.

For WGA the lowest percentage in 2020 is 0.39% (electro technical industry) and the highest is 3.02% (work and reïntegration).   

For the ZW-flex the minimum percentage is 0.10% and the maximum 1.72% (2019), and in 2020 0.06% (banks) and 5.73 % (employment agencies).

 For Temporary Employment Agencies (sector 52) a different maximum percentage applies for the premium component ZWflex, being 8.48% in 2019, and 5.73% in 2020.

The exact premium due by the tax payer is annually confirmed by notification of the tax office.    

The premium is stated as a percentage of the total Premium Wage (“premie loon”).

The Premium Wage is capped per employee to the so-called Maximum Premium Wage ("maximum premie loon”).

Government employers do not pay sectoral premiums for government employees. Instead, they pay the so-called Implementation Fund premium for the government (UFO premium).

The UFO premium in 2019 is 0.78%, in 2020 0.68%.


Go to >   The payroll service package of TAXci

Go to >    Index page - Payroll obligations in the Netherlands