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Legislative changes as of January 1, 2021

On January 1 and July 1 there are always changes in the field of employment law and social security. The changes from January 1, 2021? You can read them below.

 

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Social Security

Minimum wage

The rounded (gross) minimum wage will be increased as of January 1, 2021. The minimum wages are then gross per month, week and day in euros (excluding holiday allowance):

Daily wages

The daily wages of the ZW, WW, WAO and WIA benefits will also be increased. The maximum daily wage will be increased from € 222,78 to € 223,40 gross per day.

Maximum wage premium

The maximum wage on which premiums must be paid has been set at € 2021 for 58.311. In 2020 this was € 57.232.

Healthcare premium and allowance

Healthcare costs will continue to rise in 2021, and so will healthcare premiums: an average of € 1.414 to € 1.473 per year. The income-related contribution for the health insurance law increases from 6,7% to 7,0%. In order to keep the insurance somewhat affordable, the annual income for which you are eligible for health care benefit will be increased to € 31.138. If you have an allowance partner, your joint annual income may not exceed € 39.979.

The maximum ability to qualify for health care allowance will also be increased: € 118.479 on your own, € 149.819 together with your allowance partner.

Mandatory deductible

The deductible will remain the same in 2021: € 385. You must first pay this amount yourself for healthcare costs before you receive reimbursement from your insurer. For some care you do receive a reimbursement without paying a personal contribution: think of the general practitioner, obstetric care, maternity care, youth care and home care aids on loan.

State pension age

The state pension age will remain at 66 years and 4 months. This is planned to increase by 2022 months in both 2023 and 3. The state pension age will not be set at 2024 until 67.

Wajong amendment

The Young Disabled Persons Disablement Act (Wajong) will change with effect from 2021. Young disabled persons are now divided into two groups: Wajongers with opportunities for labor participation en Wajongers who have no permanent options for labor participation.

The first group consists of young handicapped people who have entered from the old Wajong (until 2010) and the Wajong 2010 (2010-2015). For them, labor participation is central. In addition, the government is committed to income support, whereby working (more) must pay. Since 2015 there is no new influx more of young disabled people with opportunities for labor participation.

The second group also consists of people who entered from the old Wajong situation. The government only provides them with an income. They are not entitled to employment support.

Employment law.

Payroll

From 1 January 2021, payroll employees are entitled to 'an adequate pension scheme'. This is laid down in the Workforce Allocation by Intermediaries Act (with the entry into force of the Balanced Labor Market Act). What this means in practice for payrollers? Their payroll employer must ensure that they have an adequate retirement plan.

Read more about it? Which can here.

Transition payment for small business

Employers who stop their small business due to retirement or illness will be entitled to compensation from the transition payment for their employees as of 2021. The same applies in the event that the employer dies and this leads to company closure. The employer or surviving dependents of the employer can request compensation for a paid transition payment if they meet the following conditions:

  • A maximum of 25 employees may work for the employer.
  • The UWV must have issued a dismissal permit for at least one employee due to company closure.
  • Will the company stop due to retirement of the employer? In that case, compensation is only possible when the employer has reached retirement age.
  • Only transition payments paid from January 1, 2021 are eligible for compensation.

In the published Transition compensation compensation scheme states within which periods the compensation can be applied for.

Bill 'RVU, leave savings and lump sum'

This proposal amends a number of laws and contains measures about which agreements have been made in the pension agreement to enable more customization in the employment condition pension. The relaxation of the RVU tax and leave savings should come into effect on 1 January 2021. The implementation date for the immediate payment of the amount is 1 January 2022. Please note: this is a bill. Later this month it may become clear whether the law will be passed by the Senate.

Under the new pension system, you will have more freedom of choice in the use of your pension, because it will be possible to withdraw a limited part of your pension assets at once. You also get more room to stop working earlier. To this end, the possibility is temporarily being facilitated to finance retirement schemes in sectors and companies, which gives you the option to stop working three years before your state pension age. This is done by relaxing the pseudo final levy on early retirement schemes (RVU levy). In addition, it has been agreed that more fiscal scope will be offered to save up leave, partly to enable early retirement.

Questions?

Would you like to know more about the legislative changes as of 1 January 2021? Our legal specialists are ready for you! Please do not hesitate to contact our Service Center: 0345 851 963 or sc@unie.nl.