Doing Business in the Netherlands 2012 - American Chamber of ...

15.5.1 Sickness Benefits Act (Ziektewet or ZW)
Under the Dutch Civil Code, an employer is in principle obliged to
pay 70% of the last salary (maximized till 70% of the maximum daily
wage) of the employee during the first 104 weeks of disability or up to
the date of termination of the employment contract if that date is
earlier. During the first 52 weeks, the salary should at least be equal
to the minimum wage. The maximum daily wage amounts to
EUR190.32 per work day as of July 2011)
15.5.2 Disablement Insurance Act (Wet op de
arbeidsongeschiktheidsverzekering or WAO) and Work
According to Labor Capacity Act (Wet Werk en Inkomen naar
Arbeidsvermogen or WIA)
The WAO and WIA both insure employees for a wage replacement
benefit after 104 weeks of full or partial disability. The WIA has
replaced the WAO and creates more incentives for rehabilitation and
reintegration of employees into the workforce. The WAO is still
applicable to employees who became disabled before 1 January 2004.
15.5.3 IVA and WGA
The WIA divides disability into two plans: one for individuals who
are incapable of working due to full permanent disability (IVA) and
one for individuals who are deemed able to work and therefore can
earn some income (WGA). Based upon the IVA, as of 1 January
2007, full and permanently disabled employees are entitled to 75% of
their last salary, maximized to the maximum daily wage. Based upon
the WGA, partially disabled employees who meet the requirements
are entitled to a wage-related benefit maximized to the maximum
daily wage. In the first two months, the benefit amounts to 75% of the
monthly wages minus the current income. After these two months,
the benefit amounts to 70% of the monthly wages minus the current
income. The duration of this benefit can be three to 38 months
depending on one’s employment history.
136 Baker & McKenzie