Unemployment Benefit

NL: Werkeloosheidswet

By F. Jager, 05-05-2023, HR4Expats

 

In the Netherlands, you are insured for unemployment. This is organised in the Unemployment Insurance Act (NL: Werkeloosheidswet (WW). When you meet the requirements of the WW, you will receive an unemployment benefit.  Like most social working insurance, the WW is arranged and regulated by the UWV (Uitvoeringsinstituut Werknemersverzekeringen). 

I will explain the basics of unemployment benefits in the Netherlands in this article. 

The first essential requirement of the WW is that you were employed (so not self-employed) and lost your job. You will not receive an unemployment benefit (WW) if you quit your job or did something (like stealing) to get fired on the spot. In other words, if it was not your fault or initiative that resulted in you becoming unemployed, you meet the first requirement of the unemployment benefit. 
 Of course, there are always exceptions to this rule. For example, if you and your employer decide to terminate the contract. In that case, you can still apply for the unemployment benefit.

 

The duration of the WW

First off, the duration is based on your working history. Two requirements are used to determine the duration of the benefit. These are the week requirement and the year requirement. Calculating the duration of the WW can be a bit complicated since the rules and regulations have changed a few times in the last 20 years. However, I will try to explain it as clearly as possible. 

 

The week requirement
You can only receive an unemployment benefit (WW) if you have worked at least 26 weeks in the last 36 weeks. You will receive the benefit for 3 months if you meet the ‘week requirement'.

 

The year requirement
Depending on the number of years you have worked, you can receive unemployment benefits for a more extended period of time. First, you must have worked at least 4 years in the past 5 years. Also called NL: 4 uit 5 jareneis.

Since 1988 the UWV has been able to trace someone’s working history. So that means the working history before 1988 cannot be determined. To compensate, the UWV has stated that all the years (until 1998) will be counted from the moment someone turns 18. For example, if you turned 18 in 1980, there will be 7 years added to your working history. 


Moreover, before 01-01-2016, every year you have worked counted as 1 month of unemployment benefit (WW). So, if you turned 18 in 1990 and became jobless on 01-01-2001, you would have received the WW for 11 months. 


However, since 01-01-2016, the law has changed. Only the first 10 years of your working history count for 1 month (all the years before 01-01-2016 still count as 1). From the 11th year, the unemployment benefit duration counts as ½ month.

 

 To illustrate:

John turned 18 years old on 01-02-2005 and started working in 2007. On 01-03-2023, his contract got terminated by the company.
This means that John has a working history of 16 years. The first 10 years count as 1 month, and the other 6 years count as 1/2 month. John can have an unemployment benefit (WW) for 13 months. 

 

Requirements during the WW 

Even though you receive the benefit, there are some obligations you must follow. 

  • You must register before the second day of unemployment as ‘available to work’ at the UWV via www.werk.nl  
  • Fill in your details and upload your resume at www.werk.nl  
  • During the time you receive the WW, you must apply for a job at least 4 times every 4 weeks. The UWV might ask you to provide proof of your applications. 
  • You must accept a job fitting your expertise, education and is at least 70% of your previous salary. 
  • After 6 months of unemployment, every job will be ‘fitting’ according to the UWV 
  • You are cooperating with the UWV to enhance your chances in the job market. Think of education or workplace experience internships. 

 

The amount of WW 

It is nice to know for how long you receive the unemployment benefit (WW), but how much is the benefit per month? The unemployment benefit is based on the daily wage. This daily wage is calculated by the UWV (NL: dagloon). The daily wage is (approximately) calculated with your previous income a year before you became unemployed and is divided by 261 (amount of working days per year). 

NOTE: the UWV calculates the exact daily wages. Also, there is a maximum daily wage for the unemployment benefit, not a minimum. So, if you earn the minimum wage, your unemployment benefit is calculated like someone who earns above the minimum wage. If you end up below the social minimum, you can apply for a bonus (NL: toeslag) via the UWV. 

 

The daily wage is multiplied by 21,75 (the average amount of working days per month) to calculate the monthly salary. 

In the first 2 months of the unemployment benefit, you will receive 75% of the monthly wage.
From the 3rd month, you will receive 70% of the monthly wage. 

 

For example:

Earlier, we calculated that John has 13 months of WW. Based on his previous income (€28.710,00 per year before tax), the UWV has determined that his daily wage is €110,00 before tax (bruto). 

 

For the first- and second-month, John will receive €1.794,37 before tax (bruto)
€110 x 21,75 = 2392,50 x 75% = €1.794,37 

 

For the third month (until the end of the unemployment benefit), John will receive €1.674,75 before tax (bruto).
€10 x 21,75 = 2392,50 x 70% = €1.674,75 

 

Other things you should know about the WW 

You should be aware of some other topics when applying for a WW. You will not receive a sickness benefit (NL: Ziektewet uitkering) if you were ill when your contract was terminated. For the first 13 weeks, you will receive an Unemployment benefit (WW). If you are still sick after 13 weeks, you will receive a Ziektewet uitkering 


Moreover, when you receive unemployment benefits, you build up no pension (NL: AOW). In theory, you build up 2% of AOW per year you work or are insured by the social insurances (NL: sociale verzekeringen) in the Netherlands. Below are some helpful links that provide further information regarding the Ziektewet uitkering and the AOW. 

 

If you are lost in this explanation, please look at the many online tools available. They can calculate the expected duration of the WW. Moreover, the UWV will provide you with a confirmation letter explaining the duration, amount and requirements of WW. 

You can apply for the WW (check the link below) at the UWV. You can apply earliest one week before you get unemployed, and the latest, 1 week after you get unemployed. If you apply too late, it might result in a lower benefit. The UWV will keep you up to date regarding the status of your application. Moreover, the UWV will also inform you about the requirement of the WW. 

 

Last but not least. Do not hesitate to apply for the unemployment benefit. If you find another job before your contract ends, that is great! But if you cannot find a suitable job, be aware that you can apply for the unemployment benefit.  

 

Some other helpful websites 


Sources:

  • Schulinck, De Kleine Gids voor het Nederlandse sociale zekerheid: Wolters Kluwer 2020. 
  • www.uwv.nl