The Cabinet has announced a new term of the Emergency Temporary Job Retention Measure: NOW-5. It also extends the TVL scheme already announced for Q4 2021.
NOW-5
NOW-5 will apply for the period from 1 November 2021 to 31 December 2021. This means that the turnover of the relatively good month of October 2021 will not be counted. The rules for NOW-5 are almost the same as for NOW-4:
- turnover threshold: 20%;
- subsidy rate: 85%;
- lump sum storage: 40%;
- reimbursable daily wage = up to 2 times the maximum daily wage;
- maximum reimbursable turnover loss: 80%
- the bonus and dividend ban is identical to that in NOW-3 and -4.
The rules changed from NOW-4 are:
- the wage bill exemption rate is increased to 15% (under NOW-4: 10%);
- Companies started during the period from 1 February 2020 to 30 September 2021 can also apply for NOW-5.
The reference month for the wage bill is in NOW-5: September 2021.
The reference turnover is the turnover for 2019 divided by 6. There is no choice over which months the turnover loss is calculated.
For enterprises that started between 1 February 2020 and 1 July 2021, the reference turnover period is: 1 July 2021 to 31 October 2021. Companies that started after 1 July 2021, but no later than 30 September 2021, calculate their reference turnover over the first full month of turnover up to and including 31 October 2021. In both cases, of course, a 2-month period must be converted.
The Cabinet is exploring the possibility of introducing an annual turnover loss threshold. Firms that did not incur an annual turnover loss would then not be eligible for NOW.
The aim is to open the application window by December. The UWV will pay the advance from NOW-5 in one instalment. Entrepreneurs can receive the subsidy advance if possible for December salary payments.
WTV
With effect from 1 October 2021, the Working Time Reduction (WTZ) scheme reopened. This scheme now operates concurrently with the NOW. The WTZ does explicitly state that it does not apply to corona-related applications.
Employers facing special circumstances other than corona may be eligible for both schemes. The unemployment benefit an employer receives from WTV will then count as turnover for NOW-5.
TVL
The TVL scheme had already been widened. We describe this in our article New corona support measures. In addition, the state aid limit will be increased from €1,800,000 to €2,300,000. Furthermore, the maximum subsidy amounts will be increased to €550,000 (SMEs) and €600,000 (non-SMEs).
The subsidy rate is increased to 100% (it was 85%).
Fiscal measures
For measures under the special moratorium, please refer to our article Yet another special reprieve.
Discussions are under way with neighbouring countries Germany and Belgium to extend homeworking agreements.
In the context of social security, there is a European discussion about extending the agreement that working from home does not lead to a change in the member state where contributions have to be paid.
The approval on continuing reimbursement of fixed travel expenses will expire from 1 January 2022. That is when the targeted exemption for reimbursement of the costs of working from home will be introduced. Many employers will have to make new arrangements with their employees in connection with this.
See also our factsheet Reimbursement of home working expenses.