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    Reduced Awf premium as of August 1

    The announced changes to the Awf premiums have been published in the ‘Staatscourant’ (Government Gazette) and are thereby now official. The changes are the result of the withdrawal of the Job-related Investment Tax Credit.

    Saving money

    Per employee, an employer pays a set percentage of an employee’s wages as Awf premium into the ‘Algemeen werkloosheidsfonds (General Unemployment Fund). There are two types of Awf premium: a low premium and a high premium. The low premium – applicable to the wages of employees with a permanent contract – will be reduced from 2.7% to 0.34% of the employee’s wages. The high premium – applicable to the wages of all other employees – will be reduced from 7.7% to 5.34%. Both premiums will thus be reduced by 2.36 percentage points. The reduced premiums may be applied to employees’ wages as of August 1, 2021; except in the event you file your payroll tax returns every four weeks, in which case the reduced premiums may be applied as of August 16 (i.e. tax period 9). The changes will make you save quite some money! To illustrate: for an employee earning € 4,800 per month, you will save (5 x 2.36% x €4,800 =) €566 on the Awf premium in the remaining five months of 2021.

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