In recent months, the Dutch government has supported the business sector in various ways in an effort to provide relief from the economic implications of the coronavirus (COVID-19) pandemic.
Two emergency packages contained, among other things, the “temporary emergency bridging measure to retain jobs” (Tijdelijke noodmaatregel overbrugging voor werkbehoud) (NOW 1 and NOW 2).
In late August 2020, the government presented the relief and recovery package for businesses and workers as a follow-up to the first two emergency packages. This package was effective 1 October 2020, and NOW 3 is part of this package.
NOW 3 is aimed at providing longer certainty to employers about the compensation of payroll costs. NOW 3 therefore has a term of nine months, spread over three tranches of three months. Just like NOW 1 and NOW 2, the aim of NOW 3 is to retain jobs as much as possible. Because the COVID-19 crisis is lasting longer than initially thought, NOW 3 offers employers time to adjust their business operations to the new reality, without the associated decline in the payroll automatically triggering a reduction of the subsidy amount.
Read an October 2020 report prepared by the KPMG member firm in the Netherlands
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