Your employee will generally have automatic coverage for illness, occupational disability or unemployment when working in the EU/EEA or Switzerland. In some of these European countries, however, occupational disability benefits may be lower than those provided in the Netherlands. Taking out extra coverage for occupational disability could be beneficial in such cases.
For all other countries with a reciprocal social security agreement with the Netherlands (‘verdragsland’), coverage will depend on the specific agreements made with that country. This means if your employee is working in a country where they do not have automatic coverage, you will have to arrange this for them.
If your employee is headed to a non-EU/EEA country that does not have a reciprocal social security agreement with the Netherlands, they will not be covered for illness, occupational disability or unemployment. In these situations, you will be able to arrange this type of coverage with us.
You will be able to arrange voluntary income protection coverage for your employee in the following situations if they are working outside the EU/EEA or Switzerland:
- Your employee will be working abroad for a Dutch organisation or the Dutch government and will officially be emigrating to that country.
- Your employee will be working abroad for a foreign company but will keep their official residence in the Netherlands.
- Your employee will be working abroad for a development cooperation organisation (‘ontwikkelingssamenwerking’) or an intergovernmental organisation (‘volkenrechtelijke organisatie’) such as the United Nations.
Please note: Employees who will be working abroad for less than 1 year, or whose family will remain in the Netherlands during the employee’s time abroad, will continue to have automatic coverage for illness, occupational disability or unemployment. Voluntary income protection coverage will not be necessary in such situations.
To take out voluntary income protection coverage for an employee working abroad, complete the Application form for voluntary income protection coverage (‘vrijwillige verzekering aanvragen’). Be sure to include an authorisation form, signed by you and your employee, when submitting the application.
You will also need the following information when completing the application form:
- your employee’s citizen service number (‘BSN’)
- your employee’s bank account number
The price of your employee’s coverage will depend on the amount you choose to cover them for. This amount cannot be more than the average daily income (‘dagloon’) your employee was earning when the coverage was arranged. Additionally, there is a maximum limit to the amount your employee can be covered for, even if their income is higher than this. For 2024, this limit has been set at €274.44 gross per day.
Keep in mind if you take out coverage for illness and unemployment on your employee’s behalf, the amount you cover them for must be identical for both types of coverage.
Please note: Monthly premiums for your employee’s voluntary income protection coverage must be paid directly to us and not to the Dutch Tax and Customs Administration (‘Belastingdienst’).
If you take out coverage for illness, your employee will receive 70% of the amount they are covered for while they are ill. This increases to 100% if their illness was caused by pregnancy or childbirth. Payments to your employee start on the third day of illness and can continue for up to 2 years, depending on your employee’s situation.
For occupational disability coverage, the amount paid depends on your employee’s level of disability and the amount they are covered for. These payments begin only after your employee has been unable to work for 2 years. So, without illness coverage in place, your employee might not have an income for those first 2 years.
If you have taken out coverage for unemployment, your employee will receive 75% of the amount they are covered for during their first 2 months of unemployment. This will then drop to 70% from the third month onwards.
If your employee does actually become ill, develop an occupational disability or become unemployed, you will not have to pay premiums for the specific benefit they are receiving under the coverage you arranged for them. This only applies to the full weeks (a week being Monday to Friday) in which your employee is receiving a benefit related to their specific coverage.
If you have taken out coverage for your employee, you must report any changes to us that could affect this coverage. This includes updates to the policy, such as adjusting the amount your employee is covered for or cancelling an authorisation.
To cancel your employee’s policy, use the same form that you would to report any changes to us. We will cancel your employee’s policy as soon as we receive your form. Make sure you cancel the policy on time. This is important as any premiums paid will not be refunded.