Due to a change in national social security legislation, a larger group of employees who are non residents of the Netherlands become subject to Dutch social security. This will mostly have impact on employees working in the offshore industry but can also have impact for employees in other industries. Mandatory coverage by Dutch social security can be desirable but can also result in additional costs for employer and/or employee and a higher administrative burden. This can have impact on the net salary of employees and/or the cost price of your projects.
Just before Christmas a change was announced in a national decree (Besluiten uitbreiding en beperking premies volksverzekeringen en werknemersverzekeringen) which can have an impact on non residents of the Netherlands who live in an EU/EEA country or Switzerland and work for a Dutch employer.
Based on the adjusted legislation employees are subject to Dutch social security as of 1 January 2015 based on the following conditions:
- Dutch employer
- Resident of the EU/EEA or Switzerland
- Working outside the EU/EEA/Switzerland or a country with whom we have concluded a social security treaty
Change compared to the past
Before 1 January 2015 these conditions were not included in legislation but only included in the policy rules of the Dutch social security authorities. The policy rules were based on the Case of the European Court of Justice called ‘Aldewereld’. The policy rules required a fourth condition; the employee should have been mandatory subject to Dutch social security directly before he started working outside the EU/EEA/Switzerland (hereafter EU). Since this fourth condition is not included in the new legislation, a larger group of employees will meet the conditions and as such become covered by Dutch social security. This is a significant change compared to the past.
Source: Besluit van 11 december 2014, tot wijziging van het Besluit uitbreiding en beperking kring verzekerden volksverzekeringen 1999, het Besluit uitbreiding en beperking kring verzekerden werknemersverzekeringen 1990 en het Besluit uitbreiding en beperking kring ingezetenen Wet Wajong, stb-2014-514.