Newsflash October 2011
Suggested change of the employer’s health insurance contribution
The Dutch government is planning to change the income dependable contribution for the Zorgverzekeringswet (hereafter: Zvw). This can have a substantial financial impact for employers that have employees who earn more than the now applicable maximum contribution income of € 33.427.
Per January 1, 2012 the premium that the employer has to contribute for the Zvw will be 7.1%. For 2011 this percentage is 7.75. This seems positive. But this is not case if your employee earns more than the current maximum contribution income. This maximum contribution income will raise from € 33.427 to € 50.056. Below you will find an example of the financial consequences of this change:
| Maximum contribution 2011 (7.75% * € 33.427) | € 2.591 |
| Maximum contribution 2012 (7.1% * € 50.056) | € 3.554 |
| Difference per employee | € 963 |
The goal of the suggested change is to decrease the administrative burden for employers by corresponding the maximum contribution income for the Zvw with the maximum contribution income for the employee insurances.
If you have an employee who’s income is more than € 50.056 your costs for this employee will increase with 37%. Your employee will be confronted with a decrease of his annual net income of € 500, since he has to pay taxes over the employer’s contribution.
As you can see your wage costs can increase substantial through this suggested change if you have a many employees who earn more than the current maximum contribution income. We advise you to make an overview of the effects of these changes on your wage costs.