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 an own-risk bearer. You will then pay lower 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 must 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)
Differentiated premium for the Return-to-Work Fund (Whk)
When you are a self-insurer you do not pay a differentiated premium for the Return-to-Work Fund (Werkhervattingskas, Whk, in Dutch). Whk premiums are used to pay the costs of benefits for employees who become ill or unfit for work. A differentiated premium is a premium that varies depending on the situation.
Self-insurer in case of illness
As a self-insured employer under the Sickness Benefits Act, you are responsible for paying the sickness benefits yourself to your employees who are entitled to them. You must also be aware of your responsibilities and keep your own records of sick leave. Your employees have the same rights as others who receive sickness benefit from the UWV. If your employee falls ill, you must continue to pay their wages for the first 2 years. This is called the continued payment of wages obligation.
Self-insurer for the Return to Work of Partially Disabled Persons Scheme (WGA)
Has your employee been off sick for more than 2 years? And is your employee able to work on a part-time basis (partially disabled for work)? If so, they are eligible for a WGA benefit.
As a self-insured employer under the WGA scheme, you are responsible for paying the WGA benefit and funding your employee’s return-to-work programme. You must also support your employee through the return-to-work process. You are responsible for the reintegration of your employee or former employee for 10 years. This could involve, for example, offering training and job-seeking courses. You can opt to bear the WGA risk yourself for employees on permanent contracts or flexible contracts. Read what you need to know about applying for self-insurance under the WGA
You have other costs as a self-insurer
Determine whether it makes sense to become a self-insurer. For example, compare the costs of preventing absenteeism and health and safety services with the employee insurance premiums. Consider the following in advance:
- the arrangements you set out in an absenteeism protocol
- the risks of illness and incapacity for work in your sector
- the responsibilities you will assume as a self-insured employer
How to apply to become a self-insurer?
If you are applying to self-insure, please bear in mind a number of conditions:
- As a new employer, you can become self-insured from the moment you become an employer.
- You are not automatically self-insured under the Sickness Benefits Act if you are self-insured under the Return to Work of Partially Disabled Persons Scheme (WGA), and vice versa.
- You can start self-insuring from 1 January or 1 July.
- Your application must be received no later than 13 weeks before the start date (1 January or 1 July).
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.
You remain responsible for current benefits
If you stop as a self-insurer, you remain responsible for current Sickness Act and WGA benefits. For the WGA, you remain responsible for the reintegration of these employees if they remain ill.
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).