General
- A social plan is an agreement between an employer and employee representatives, such as trade unions, that outlines how employees will be treated in the event of a reorganisation, such as a merger, acquisition or a significant change in business operations. It typically covers aspects like redundancy pay, retraining opportunities, outplacement services, and how employees will be consulted during the process.
A social plan is an agreement between employer(s) and trade union(s), in which arrangements are laid down that regulate the consequences of a reorganisation. If the reorganisation has consequences for you as an employee, the employer must apply the social plan. This applies, for example, if it has been decided to move your activities to another location, to stop carrying out certain activities, or to do the same work with fewer people.
The social plan outlines your rights and obligations. It also states whether your role may be made redundant and what your employer must do to help you find another position (and which alternative roles you must accept). If another job cannot be found, you are often entitled to a redundancy payment. This is also arranged in the social plan.
- Een collectieve arbeidsovereenkomst (cao) is een overeenkomst die namens een groep werknemers met een werkgever of werkgeversorganisatie wordt gesloten.
Actually, it's very simple: CLA stands for Collective Labour Agreement and encompasses a written agreement between employee organisations, employer organisations and employers. It sets out agreements on terms and conditions of employment. A CLA applies in addition to your individual employment contract and therefore largely determines your terms and conditions of employment.
- Is my employer obliged to apply the collective labour agreement if they are not a member of the employers' association?
Is a collective labour agreement mandatory or not? A question that is regularly asked by both employers and employees. If your employer is not a member of an employers' association, then applying a collective labour agreement is only mandatory when:
- A company collective labour agreement;
- An industry-wide collective labour agreement (CLA) that has been declared universally binding (UB). The CLA then automatically applies to all employers in that industry that fall within the scope of the CLA. This includes your employer, who is not a member of an employers' association. There are exceptions to this, however.
- Your employer is not covered by a collective bargaining agreement. What does this mean for me?
It often happens that no collective bargaining agreement (CBA) applies. If there is no CBA that covers your employer and therefore your employment contract, then you make your own agreements with your employer. It is advisable to record these agreements in writing in your employment contract.
- Can my employer deviate from the collective labour agreement?
If a collective labour agreement (CLA) applies, your employer is obliged to implement the provisions of the CLA. Whether your employer may deviate from the provisions in the CLA depends on the nature of the CLA. In the case of a norm-CLA or standard-CLA, your employer must apply all provisions as described in the CLA and may not deviate from them. This also applies even if the change would be an improvement for you.
With a minimum collective labour agreement (CLA), your employer is allowed to deviate from the provisions in the CLA, but only if it results in a better arrangement for you as an employee. Often, the type of CLA can be found within the CLA itself.
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The cabinet wants to shorten the maximum duration of unemployment benefit to one year. This means that if you are dismissed, you will have a shorter entitlement to a wage-related benefit.
In addition, it is proposed that the maximum daily wage be reduced by 20%. This maximum sets the upper limit for unemployment benefit.
The cabinet is also proposing to significantly limit accrual. Currently, for every year worked in the first 10 years, you accrue 1 month of unemployment benefit. If this cabinet has its way, this will be halved to half a month per year worked. This means that after ten years of employment, you will only be able to rely on unemployment benefit for five months instead of 10 months, and will otherwise have to fall back on social assistance.
In addition, the reference period requirement is being adjusted, meaning you will have to have worked for longer to even qualify for the short-term unemployment benefit of 3 months. Both have major consequences, especially for young people.
The benefit in the first two months of unemployment benefit should be increased from 75% to 80%.
Sample calculation (indicative):
- Current maximum daily wage ≈ € 6.600 Gross per month
- Unemployment benefit for the first two months: 80% in the first two months → approximately € 5280 Gross per month
- Unemployment benefit after 2 months (70%) → € 4620 Gross per month
If the maximum daily wage 20% falls:
- New maximum ≈ € 5.280 Gross per month
- Unemployment benefit for the first two months (80%) → approximately € 3.960 Gross per month
- Unemployment benefit after two months (70%): € 3696 Gross per month
That's a difference of nearly €1,000 gross per month at maximum benefit.
For middle and higher incomes, this can therefore mean a significant drop in income.
The plans involve a reduction in benefits under the WIA in several areas. The most significant changes relate to (1) the benefit ceiling and (2) the abolition of IVA (for new entrants).
- Maximum daily wage for benefit purposes
The government wants to reduce the maximum daily wage – the upper limit used to calculate unemployment benefit (WW) and disability benefit (WIA) – by 20%. According to the figures currently being circulated, this amounts to a reduction of approximately € 6.617 to € 5.293,60 gross per month (based on the current monthly maximum).
This particularly affects people with middle to higher incomes: their benefit is “capped” more quickly, meaning the income gap during unemployment or incapacity for work becomes larger. - Abolition of VAT
Currently, people who are fully and permanently incapacitated for work under the IVA scheme receive a benefit of 75% of the (capped) daily wage. Under the proposed changes, the IVA distinction for new entrants will be abolished, bringing this group into line with the current standard under the WGA: 70% instead of 75%. This group will also be subject to reintegration obligations and the risk of reassessments.
Important: according to the budgetary annex to the coalition agreement, current recipients of IVAs will retain their IVA entitlement at the moment of introduction. - WGA: shorter ‘longest-related’ phase
For people in the WGA, the wage-related phase is shortened because it is linked to the duration of unemployment benefit, which is being reduced to one year by the government. This means you will enter a follow-up phase more quickly, with the risk of a low follow-up benefit which is often far below the social minimum. In some cases, people are entitled to a supplement from the UWV up to the social minimum.
For people with supplementary insurance for an excess, it depends on the policy terms whether this difference is compensated (and for how long).
For the state pension (AOW), the intention to further increase the state pension age means that you may become entitled to your state pension earlier than previously agreed in the Pension Agreement. In the coalition agreement, the state pension age is linked 1-to-1 to the increase in life expectancy, as opposed to 8 months per year of life as part of the pension agreement.

Image: Old Age Pension plans Cabinet (image: NOS.nl)
This can mean:
- Working longer, for the youngest generation even beyond the age of 71.
- Or bridging a period with own funds or pension.
