Self-insurer for employee insurance
As an employer in the Netherlands, you can choose to become a self-insurer (Activiteitenbesluit eigenrisicodrager, ERD). This is also known as the own-risk bearer. You will then pay less employee insurance contributions. Does your employee become ill or unfit for work? Then you pay the benefit instead of UWV. Read what your options are.
Becoming a self-insurer
You are obliged to insure your employees for sickness (Sickness Benefits Act) or incapacity for work (WGA). You pay the premium for these employee insurances to the Netherlands Tax Administration.
You can also choose to become a self-insurer. Together with your company doctor or health and safety service, you then take care of the absenteeism policy and health and safety services yourself.
You can become a self-insurer for the:
- Return to Work of Partially Disabled Persons Scheme (WGA, part of the WIA Capacity for Work Act)
You have other costs as a self-insurer
Determine whether it makes sense to become a self-insurer. For example, compare the costs of absenteeism prevention and health and safety services with the employee insurance premiums. For example, you should make an absenteeism policy. This contains agreements on what should happen when your employee is ill. Also examine what the risks of illness and incapacity for work are in your sector. And what responsibilities you have.
Self-insurer in case of illness
If your employee falls ill, you have to pay the first 2 years of wages. This is called the continued payment of wages obligation. As a self-insurer under the Sickness Benefit Act, you are responsible for paying these benefits to your sick employees who are entitled to them. Your employees have the same rights as others who receive sickness benefits from the UWV.
You can become a self-insurer for employees who:
do not have a 'regular' employment contract, such as homeworkers and interns
worked for you (and were insured) and became sick within 4 weeks after leaving employment
were employed on a temporary contract that ended during their illness
Are you a self-insurer for the Sickness Benefits Act? You must know about your responsibilities and obligations, and keep your own absenteeism records.
Please note: continuing payment of a sick employee's wages for 2 years does not mean you are a self-insurer. This obligation applies to all employers.
Self-insurer for the Return to Work of Partially Disabled Persons Scheme (WGA)
Is your employee sick for more than 2 years? And can your employee work in part (partially incapacitated)?. Then they are eligible for a WGA benefit.
You can choose to become a self-insurer for the WGA for employees with a permanent contract who are partially disabled for work and are eligible for the WGA. You then pay the benefit yourself, instead of UWV. Read the information on becoming a self-insurer for the WGA on the UWV website to help you decide. You can read more about your duties and responsibilities there. In addition to the benefit itself, you pay the costs of reintegration and you supply support for the reintegration process.
If you are a self-insurer for the Return to Work of Partially Disabled Persons Scheme (WGA), you pay a lower premium. You pay the basic premium plus the Work resumption account (Activiteitenbesluit Werkhervattingskas, Whk) without the WGA premium. You can calculate your premium (in Dutch) on the UWV website.
How to apply to become a self-insurer?
You apply to the Netherlands Tax Administration if you want to become a self-insurer for the Sickness Benefits Act (in Dutch) or for the Return to Work of Partially Disabled Persons Scheme (WGA, in Dutch).
If you want to become a self-insurer for both sickness benefit and the WGA, you have to apply for both separately. If you apply for one of these options, you are not automatically a self-insurer for the other.
You can have the self-insurer commitment start on 1 January or on 1 July. Your application must have been received 13 weeks before these dates at the latest.
If you are a starting entrepreneur, you can become a self-insurer from the moment you become an employer.
Stopping as a self-insurer
Your self-insured status can end in 2 ways:
- You deregister as a self-insurer You can deregister from the Tax Administration twice per year. This is possible on 1 January and 1 July. You must deregister 13 weeks before these dates.
- The self-insurer status ends automatically In certain situations, your self-insurance ends automatically. After 10 years, UWV takes over the benefits and reintegration of your employee or former employee.
Other situations where self-insurance stops:
- If you are declared bankrupt.
- If you are no longer an employer.
Insurance
You can choose to bear the financial risk entirely on your own, or take out full or partial insurance with a private insurer. These insurers often also support the reintegration process. The Dutch trade association of insurers offers an overview of insurers (in Dutch).