Employers are being given more time to submit their definitive application for the payroll costs subsidy under the NOW scheme (Temporary Emergency Bridging Measure for Sustained Employment). Minister Wouter Koolmees has announced that the deadline for applying for definitive determination of the subsidy under NOW 1.0 has been extended until 31 October 2021.
NOW subsidy
The NOW scheme is a contribution towards payroll costs for companies that have suffered a drop in turnover of at least 20% as a result of the coronavirus crisis. This was initially capped at 90% of payroll costs and from 1 January 2021 will not exceed 85% of payroll costs. From 1 April 2021 more stringent conditions will apply and the level of the payroll costs subsidy will also be reduced.
Definitive subsidy
Employers who have applied for a subsidy initially receive an advance payment after submitting their application. The UWV can only calculate the definitive subsidy once the actual drop in turnover is known. To allow this calculation to be made, employers have to submit a separate ‘application for definitive determination of the subsidy’ for each application period.
All application periods extended
Due to, amongst other things, the complexity of the applications and the workload that accountancy firms are facing, the decision has been taken to extend the application period for definitive determination of the subsidy under NOW 1.0 until 31 October 2021. The application periods for definitive determination of the other subsidies under the NOW scheme have also been extended.
Please note:The opening date for applications for determination of the subsidy under NOW 2.0 has also been brought forward from 15 April 2021 to 15 March 2021.
Overview of NOW (as at 23-02-2021)
| NOW period | UWV application period | Period for definitive application to UWV | |
| NOW 1.0 | 1-03-2020 to 30-05-2020 | 1 | 7-10-2020 to 31-10-2021 |
| NOW 2.0 | 1-06-2020 to 30-09-2020 | 2 | 15-03-2021 to 5-01-2022 |
| NOW 3.1 | 1-10-2020 to 31-12-2020 | 3 | 4-10-2021 to 26-06-2022 |
| NOW 3.2 | 1-01-2021 to 31-03-2021 | 4 | 31-01-2022 to 23-10-2022 |
| NOW 3.3 | 1-04-2021 to 30-06-2021 | 5 | 31-01-2022 to 23-10-2022 |
Generous payment schemes
When the definitive subsidy is determined a portion of the advance already paid out may be reclaimed. Due to the ongoing restrictions associated with the lockdown, this could put companies in financial difficulty.
Please note: The UWV is therefore offering generous payment schemes that take the personal situation of employers into account. One of the options is a deferment of payments.
