The opposition, employers’ associations and trade unions are all fearing the worse, but the outgoing cabinet has nonetheless stated it will not extend the coronavirus support measures – including the NOW scheme – after September 2021. However, new measures can be implemented if another wave of COVID-19 infections impacts the economy. At the time this edition of HRM Rendement was published, there was no sign yet of any new measures being in the making.
Decline in revenue
The NOW 4.0 – which can be applied for in the third quarter of 2021 – thus appears to be the last option for organizations to apply for subsidy through the NOW scheme to cover a loss in revenue. One important change has been made to this last round of NOW support: the subsidy received is calculated based on a decline in revenue of at most 80%, even if an organization has experienced a higher decline in revenue. The subsidy rate is still 85%. This means that if your organization has seen a decline in revenue of 100%, you will receive a subsidy of 68% (i.e. 80% x 85%) of your total wage bill. Any other rules pertaining to eligibility for the NOW subsidy have remained the same.